Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05: A Capital-Protected Route to 10% Annual Interest

With market uncertainty still shaping investor behaviour across the US and Europe, many advisers are turning to structured deposit plans that offer predictable outcomes, capital protection, and clearly defined early maturity opportunities. Deposit based autocall structures have become particularly attractive for clients who prefer security over volatility, especially when paired with meaningful fixed interest potential.

The Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05, administered by Hilbert Investment Solutions and backed by Societe Generale, London Branch, provides a capital-protected way to access global equity markets through the Allegro Transatlantic Fund. With an annual 10% fixed interest potential and a strong defensive structure, this plan offers an appealing option for clients prioritising protection and stability.

Introduction

The Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05 offers investors a structured, capital-protected deposit designed to deliver competitive fixed interest while maintaining clarity on potential outcomes.

This plan may appeal to investors who:

• Prefer capital protection over market-linked capital risk
• Want exposure to US and European markets through a professionally managed fund
• Appreciate clear annual kick-out opportunities
• Seek predictable, rules based potential returns
• Are comfortable taking on deposit taker risk

This article outlines the plan structure, growth potential, key risks, and suitability considerations for advisers and their clients.

Plan Overview

Plan Name: Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05
Deposit Taker: Societe Generale, London Branch
Administrator: Hilbert Investment Solutions
Underlying Asset: Allegro Transatlantic Fund (US & European equity exposure)

Early Maturity (Kick-Out) Feature

The plan has a maximum term but can mature early.

From 23 January 2029, the plan will mature early if:
The Underlying Asset closes at or above the relevant Reference Level on any Annual Measurement Date.

If that happens:

• Investors receive a Fixed Interest Amount of 10% per year
• The original deposit is repaid in full (less agreed adviser fees or withdrawals)

This offers clients:

• Attractive fixed interest potential
• A clear, rules-based early-exit mechanism
• A defensive trigger level based on fund performance

Repayment of Your Deposit

This plan is capital protected, meaning:

You should expect to receive 100% of your original deposit back at maturity

(less any agreed adviser fees or withdrawals)

This applies whether maturity occurs:

• At the end of the full term, or
• On an earlier Annual Measurement Date

Importantly:

• Capital protection does not depend on market performance
• Capital is at risk only if the Deposit Taker (Société Générale, London Branch) fails
• Amounts above the FSCS limit may be exposed if the Deposit Taker becomes insolvent

This makes the plan suitable for investors who want market exposure without risking their original deposit, subject to counterparty strength.

Early Withdrawal Considerations

Investors can request early withdrawal before the final maturity date.
However:

You may receive back less than you invested if exiting early.

This is because the deposit’s value may be influenced by market conditions, interest rate movements, and plan terms at the time of withdrawal.

Full details are available in the plan brochure.

Capital Protection and FSCS Coverage: What Investors Need to Know

One of the core attractions of the Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05 is its capital protection at maturity, provided that the Deposit Taker, Societe Generale (London Branch), remains solvent. This structure aims to give investors confidence that their original deposit will be returned at maturity, even if the underlying asset has fallen in value.

In addition to this defensive structure, eligible deposits benefit from protection under the Financial Services Compensation Scheme (FSCS). The FSCS compensation limit increased from £85,000 to £120,000 on 1 December 2025, offering a higher level of security for qualifying depositors. This enhancement provides an additional layer of reassurance for investors seeking capital protection alongside potential fixed annual returns.

This increased FSCS coverage is a key consideration for those looking to balance defensive investment strategies with strong depositor security, making the Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05 particularly attractive for cautious investors and advisers prioritising risk-managed solutions.

Expected Tax Treatment

Interest generated under this plan is typically treated as:
Income tax

Interest is paid without deduction, meaning investors are responsible for determining and paying any tax due based on their personal circumstances and investment wrapper.

Tax treatment can vary, so investors should seek professional tax guidance.

Key Risks

While the plan is capital protected, it carries important risks:

Deposit Taker (Counterparty) Risk

Repayment of both deposit and interest depends on Societe Generale, London Branch meeting its financial obligations.

If the bank were to fail:

• Investors may lose money
• FSCS may provide compensation only up to the deposit protection limit
• Amounts above this limit may be at risk

Market Risk (for interest only)

The 10% annual interest depends on the performance of the Allegro Transatlantic Fund on each Annual Measurement Date.
If the fund does not meet the Reference Level, no interest is paid for that period.

Early Withdrawal Risk

Early exit may result in receiving back less than the original deposit.
Investors should carefully consider:

• The financial strength of Societe Generale
• The performance outlook for US and European markets
• Their personal liquidity needs
• Their tolerance for conditional interest outcomes
  

Who Might This Plan Suit?

This plan may be suitable for:

• Investors prioritising capital protection
• Clients seeking structured deposit returns with high potential interest (10% p.a.)
• Those who value annual kick-out opportunities
• Investors wanting exposure to both US and European markets
• Individuals uncomfortable with full market risk but open to conditional returns

This is general information only and not personal financial advice.

Final Thoughts

The Allegro Super Defensive Annual Autocall Deposit Plan – Issue 05 offers a compelling blend of capital protection, defensive triggers, and generous fixed interest potential. For advisers seeking a lower-risk structured solution that caters to cautious investors, without sacrificing meaningful return opportunities, this plan provides a strong, transparent framework tied to transatlantic market performance.

To learn more, advisers and clients can download the full plan brochure or contact the Hilbert team at hilbert@hilbert-is.com.

This blog first appeared on Best Advice Wealth Management.

Disclaimer: Hilbert does not provide investment or tax advice. If you are unsure whether an investment is right for you, you should seek professional financial advice. Hilbert’s products are available via a regulated platform. Your capital is at risk and you may lose some or all of the money you invest.