Old Mutual Int’l launches protected global equity fund
From Products Nov 4 2011 BY: Simon Danaher
, Online News Editor
, International Adviser
Old Mutual International has launched a protected fund offering full capital protection and exposure to a range of equity markets from around the world.
The OMGB USD Protected Global Index Fund is available to investors making new investments in Old Mutual International’s Life Account 2 product. It provides exposure to the equity markets of Brazil, China, India, Japan, Russia, the UK, USA and the eurozone.
Offering 100% capital protection, the portfolio is weighted towards the respective economies on a basis which gives greater allocation to those countries expected to grow the fastest, such as emerging markets. Old Mutual said the product can potentially provide investors with a return of up to 165% on the initial investment – based on an average portfolio held for a full term of six years until maturity. The capital protection is provided by “A” rated bank, Morgan Stanley.
The product opened for investment on 28 October for a six week period, after which the proceeds will be invested for six years. At maturity, the value of the portfolio will be switched into the OMGB USD Money Market Fund and thereafter investors will have access to the full range of Life Account 2 investment choices.
While invested in the OMGB USD Protected Global Index Fund, Old Mutual said the normal Life Account 2 charges will be waived and only fund charges will apply.