SG Hambros and SG Asset Management are about to launch a five-year dynamic portfolio insurance product based on the DJ Dividend Select Index, a total return index which tracks 100 high-dividend US large cap stocks.
High Dividend Target pays an annual coupon of 70% of NAV growth capped at 10%, and allows the balance to compound to generate growth at maturity.
The product was announced at an SG Hambros structured products seminar, at which head of product development Peter Gardner and CIO Andrew Popper both said the private bank is 'pushing' this new generation of CPPI product, which enables management of the participation in the underlying asset.
Gardner said structured product issuance is doubling on an annual basis at the moment. He said the bank, which is part of the SG empire, has launched €100m in structured products between January and the end of April this year. Total assets under management stand at just over £5bn.
DPI products are the bank’s biggest growth area. However, the biggest-selling product over the last three or four years, in common with other private banks, has been the range accrual note.
SG Hambros 'campaign' products (ie those sold on a non-bespoke basis) have a minimum investment of £10,000 for sterling investors with a minimum tranche size of £1m. Minimum investment for a bespoke product is £1m.
