Anglo Capital Plus Account Issue 3

I agree. The costs must be hidden somewhere - perhaps subsumed into the underlying derivative (?) and reflected in a reduction in yield with respect to the performance of the underlying investment tracked. This would be fairly typical tracker bond smoke and mirrors stuff.
 
ClubMan said:
I agree. The costs must be hidden somewhere - perhaps subsumed into the underlying derivative (?) and reflected in a reduction in yield with respect to the performance of the underlying investment tracked. This would be fairly typical tracker bond smoke and mirrors stuff.
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Possibly. Am intrigued by it. Wonder can anyone get the prospectus off them. The brochure is too simplistic.
 
What happens is that Anglo Irish put all your principal on deposit in their bank. That's how they can guarantee it.

They then buy an insurance product from a counterparty, in this case I think it's Goldman Sachs. This provides the return.

They pay for this out of the interest they earn by lending your funds onwards.

It is complex, yes. It lacks transparency, yes.

But it does seem to be a good deal.

One issue: the rental income that these properties earn, is that reflected into the property index value?
 
If it looks like a tracker bond, walks like a tracker etc.

I would assume that the asterisks queried above are meant to refer to the fact that there is averaging involved in computing the final return, but that's just my own interpretation.

100% security and 100% participaton is an odd combination-I would have expected some sort of trade off, i.e. 80% security with 100% return or vice versa.
 
I bought into their Issue 1 last August, 100% security and 70% participation. Wish i had waited.
 
Well I presume they are now offering greater participation because they are taking the view that the overall return for someone who invests now will be less than if you had invested 2 years ago etc?
 
They are only guaranteeing the nominal sum invested, which in five year's time will be worth much less. Perhaps this is where the charge is?
 
But your cash is only tied up for three years and nine months, not five years.

Without having read the fine print it certainly looks like a less expensive way of getting exposure to the overseas commercial property market than all those property syndicates that are popping up all the time now.
 
Just see advertisement on front of Sunday Indo today re Capital Plus Account. Did anyone do further investigations re hidden charges. It all seems too good to be true!!!!
 
Hi folks. I have just been on to Anglo and they assure me that there are definitely NO fees involved with this account. I asked the question that with 100% security/100 participation and no charges what is in it for Anglo? Basically she explained that Anglo are mainly a lending bank and the clause that no withdrawals can be made from the account for its 3yrs 9mths duration means that they are assured of the money for lending purposes for that timeframe. She gave me previous issue performances - Jan05-Jan07 78.97% and 31/1/06-31/1/07 41.58%. Think I will go with it.
 
The detailed prospectus would still be the best document to check for details of how they make money on this.
 
Just spoke to Anglo again and there is no prospectus available for this product or indeed for any of their products. Again explained to me that it is cheaper for them to provide this type of product that having money on deposit from customers as deposit interest is payable on deposit accounts. With this Capital Plus Acc money stays in account at no cost to Anglo for duration of term. Also they are on a mission to get new customers and feel this account will draw a lot of attention. Have I enough information here to make an informed decision to go with it?
 
Hear what you are saying clubman but what information am I looking for other than what is provided in the data on their web page?
 
I may be bending the rules here by mentioning a specific alternative but this IS a discussion about a specific product.

Rather than giving Anglo 20k for 3 years and 9 months, could you not buy iShares FTSE EPRA/NAREIT UK Property Fund (IUKP) and iShares FTSE/EPRA European Property Index Fund (IPRP) through a discount broker and end up with more or less the same product? The difference being that you could sell them whenever you wanted and you would also receive the pooled dividend payments from the funds.

You would not have any capital guarantee and would be exposed to changes in currency rates. Personally, I am not impressed with a capital guarantee in almost 4 years time as it represents a serious loss in the real value of your money. I also believe that the chances of property being worth less in 4 years time than it is now are extremely slim. There is always a currency risk no matter what you do - if Sterling gets stronger over the investment period you will lose out as a result of being 'protected' from currency risk by the Anglo product.

I may be missing something crucial and would be glad to hear criticism of the above alternative.
 
Just wanted to say I appreciate the extremely helpful contributions from posters which has given me lots to think about. I intend to make a decision one way or the other over the Easter break. If I do go ahead - and am still here in 3yrs 9mths - I might resurrect this thread and let you know how it went!

Thanks everyone.
 
Have been following this thread and have a "slightly" off point issue. Am thinking of going for this account as well. Like the capital guarantee so taking risk but still have someit, also have always liked anglo in the past, (the power of building up good customer relations/image!) Thinking of putting the ssia into it and wondering will it attract a lot of ssia's.

For me if it was min €10k would definetly go for it and still have some of the ssia left for other purposes. Discussions in work have been on the basis that its money u haven't had access to so far so can tie up for next three yrs nine mths. If there was such a €10k capital guaranteed surely it would attract alot of ex ssia money?
 
At face value this bond appears very attractive alright. Will appeal to SSIA savers who can lock up money for 3 years 9 months. However most SSIA money due for pay-out in May and closing date for this is April 27th. If Anglo's intention is to target SSIA money would be a good idea to extend this date.
 
following this thread also with great interest. Seems v attractive but still awaiting answer from clubman as to what other information I should be trying to get before making my decision.
 
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