Anglo Capital Plus Account Issue 3

P

philips

Registered User
Messages
49
Got a letter from Anglo about this today - 100% capital security tracking the UK commercial property index and also the FTSE EPRA Euro Zone Public Real Estate Index. Minimum investment 20,000e for 3 years and 9 months. No fees or charges and 100% participation in any gain of the indices. Would be interested in comments.....or warnings!....about this product.
Thanks.
 
Hang on

  • 100% capital guarantee?
  • 100% participation?
  • NO fees or charges?
Doesn't sound right. What's in it for Anglo?
 
Exactly what I was thinking CCOVICH which is why I posted looking for comments. Definitely says in black and white on the letter received today "No Fees or Charges" but for some strange reason does'nt say it on the website.
 
they have the brochure and all the T&Cs online
[broken link removed]
at the bottom of the page
 
The prospectus would be a much more detailed document and should clarify all detailed issues about the product. However it may also be necessary to read the detailed documentation about any underlying financial instruments/derivatives as well.
 
I have been on the Anglo website and read through the Product Brochure, Terms and Conditions etc. and still can't find the catch. Only negative I can see is that there is no access to the money until maturity.
gravitygirl, you had asked about the same product (Issue 2?) a while back - did you go ahead with the investment or are you still considering..........and also looking for the drawbacks??!!
 
I didn't actually, though was tempted at the time! however as far as i remember, it was only 80% participation i.e. you only got a max of 80% of any gains, during the second issue, which is why it seems strange now that they are offering 100%. I also trawled through the T&Cs, where you would expect to find all the relevant conditions, surely?
 
Remember that the 100% capital security is on the nominal and not the real value of your money.
 
indeed, it goes without saying that inflation is a risk (and a significant one given the rate these days!), however if that is the only risk, it seems a decent product in terms of charges and risk imho.
 
Yes, it looks like an interesting offer-on the proviso that the indices in question outperfrom cash deposits over the term. Tax at 23% will be payable on any gain.
 
The formula in the terms & conditions for calculating returns looks a bit complicated to me - especially when read in conjunction with the definitions section. This sort of obfuscation puts me off things like this.
 
as far as i can see it's just a weighted average of 100% of the gain in the two indices used, where the weights are 0.5 each i.e. both indices are invested in equally.
 
But what do the asterisks on A1 and B2 mean and why don't the terms used correspond to those in the definitions section? :confused:
Gross Interest =
Max { 0%, 100%*[50%*((A2-A1)/A1) +50%*((B2-B1)/B1)] }

Where:

A1 = EPEU Index level at Start Date,
A2 = Final index level* of EPEU Index,
B1 = IPD Index level at Start Date,
B2 = Final index level* of IPD Index,
100% = Participation level
Click to expand...
 
apologies, i hadn't seen the asterisks on the pdf - my eyes must be failing me in my old age ;) well spotted clubman!
 
Confusingly they say in one place that DIRT is 23% which is wrong but elsewhere clarify that the exit tax is DIRT + 3% = 23% on any gains. That is the normal tax that applies on indirect share investment (e.g. unit linked fund) gains.
 
it's standard for this type of product (e.g. index trackers etc.) due to the rollover nature i.e. the fact that you don't pay dirt on an annual basis (as far as i know anyway but im open to correction! :))
 
Fair enough. Still don't believe that there are no charges. Someone is paying for the capital protection.
 
You must log in or register to reply here.
Back
Top