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Managing and Growing My Wealth

The HSBC Onshore Investment Bond is a lump sum investment providing you with the potential for capital growth while still allowing you to make withdrawals from your investment.

HSBC Onshore Investment Bond

The HSBC Onshore Investment Bond is a lump sum investment providing you with the potential for capital growth while still allowing you to make withdrawals from your investment. The HSBC Onshore Investment Bond has been designed as a medium to long term investment.


Features & Benefits

  • Invest for growth or income, or both
  • Switch between funds with no immediate tax liability
  • Trusts to help mitigate Inheritance Tax
  • Arrange regular or one-off withdrawals
  • Transparency - no hidden costs

Eligibility

  • UK resident aged 18 or over
  • Minimum investment £5,000
  • No maximum investment limit


The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

Most investments should be considered as a medium to long-term commitment, meaning you should be prepared to hold them for at least five years.



Literature

For HSBC advisors and their customers

For more information please contact your HSBC Premier Relationship Manager who will be able to help you decide if this is the right investment for you. The HSBC Onshore Investment Bond is provided by HSBC Life (UK) Limited.



For Non-HSBC advisors and their customers

For more information please contact your Financial Adviser who will be able to help you decide if this is the right investment for you. The HSBC Onshore Investment Bond is provided by HSBC Life (UK) Limited.



For HSBC Life Supplementary Endowment Plan (SEP) Customers


For HSBC Life (off-sale) Onshore bonds

Responsible Investing

HSBC Global Asset Management provide the administration for the funds in these bonds. HSBC Global Asset Managers aim to incorporate environmental, social and governance (ESG) factors in their investment decisions to generate sustainable, long-term returns. ESG factors can materially impact a company's long-term performance. Put simply, they believe companies that conduct their business in a responsible and sustainable way are more likely to deliver value over time.

Responsible investing is integral to HSBC Global Asset Management's investment philosophy and approach. They invest in, and engage with, companies committed to long-term returns: these are likely to focus on stewardship, take account of their broader impact on society and avoid excessive risk-taking.

To find out more about their engagement policy, and to view their Responsible Investing page, a link is provided below.

https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/about-us/responsible-investingOpens in external site


Shareholder Rights Directive II ("SRD II")

SRD II aims to promote effective stewardship and improve transparency in how asset owners (life insurers) and asset managers set their long-term investment strategies and how they communicate these when working together.


A. Shareholder engagement policy

HSBC Life maintains an Investment Policy in relation to HSBC Life Assets which is updated annually. The Policy does not currently include Equity Investment and no direct or indirect exposure to Equities are held by the HSBC Life to match long term liabilities. There are currently no plans to widen the Investment Policy to include Equity Investments. HSBC Life does not exercise any Voting Rights on any Company Assets.

HSBC Life does not therefore appoint a Fund Manager to manage Equity Investments on its behalf. HSBC Life does appoint a Fund Manager to manage Equity Investments for its unit linked funds which support Life Products.

A unit linked fund is an investment, which combines your money with money from other investors and buys units in a fund which invests directly and indirectly in shares traded in a regulated market.

Currently, HSBC Life unit linked funds are managed by HSBC Global Asset Management ("the Fund Manager") on a discretionary fund management basis. The funds have a mandate in place to ensure the funds are managed in line with customer expectations as set out in the relevant fund objectives.

The Fund Manager's engagement policy may be found using the following link:

https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/about-us/responsible-investingOpens in external site


B. Investment strategy and arrangements with asset managers

Under the FCA rules we are required to provide the following public disclosures regarding our arrangements with Fund Managers:


Considerations HSBC Life approach
1. How the arrangement with the Fund Manager incentivises the Fund Manager to align its investment strategy and decisions with the profile and duration of the liabilities of the life insurer's long term liabilities. Investment strategy and decisions for the unit linked funds are made by the Fund Managers in accordance with the mandate for each fund.

HSBC Life does not exercise voting rights on any Equity Investments in its unit linked funds, either directly or through the Fund Manager.
2. How that arrangement incentivises the Fund Manager to make investment decisions based on assessments about medium to long-term financial and non-financial performance of the investee company and to engage with investee companies to improve their performance in the medium to long-term. The unit linked funds are managed by the Fund Manager against benchmarks and target performance set for each fund within the mandate, not for the financial performance of HSBC Life. HSBC Life charges policyholders an Annual Management Charge under policy terms and conditions and this is based on fund size but this is not a consideration that the Fund Manager takes into account in its investment decisions.
3. How the method and time-horizon of the evaluation of the Fund Manager's performance and the remuneration for fund management services are in line with the profile and duration of the liabilities of HSBC Life, in particular, long-term liabilities, and take absolute long-term performance into account. We conduct regular reviews of the unit linked funds managed by the Fund Manager, to ensure they are being managed in line with the fund objective and investment policy, and to ensure any performance issues are raised and addressed. This is for policyholder benefit only and not with reference to HSBC Life's own liabilities.

The Fund Managers remuneration is based on Asset Values within the unit linked funds which incentivises them to grow the funds on behalf of policyholders.
4. How HSBC Life monitors portfolio turnover costs incurred by the Fund Manager and how it defines and monitors a targeted portfolio turnover or turnover range. We do not currently monitor portfolio turnover as this is not subject to limits in the investment policy and fund agreement with the relevant Fund Manager. However, turnover costs will be reflected in investment performance and therefore monitored indirectly.
5. The duration of the arrangement with the Fund Manager. Our current arrangements with Fund Managers will continue until such time as the relevant fund agreement and mandate are amended.

The above statements will be reviewed on an annual basis and updated in the event of any material changes.

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