Old Mutual Int'l launches second protected fund
From Products Feb 22 2012 BY: Simon Danaher
, Online News Editor
, International Adviser
Old Mutual International has launched a second tranche of its OMGB USD Protected Global Index Fund for new Life Account 2 investors.
The fund offers full capital protection and a potential investment return of 140% of the averaged investment growth of the portfolio, if held for six years until maturity.
Old Mutual describes the product as a “buy to hold” investment.
It provides exposure to leading developed and emerging market equity market indices, such as the UK, US, eurozone, India, Japan, Russia, Brazil and China, with a bias towards emerging economies.
The capital protection is offered by Morgan Stanley, as is the index-linked performance. The fund is open until 30 March, 2012, at which point the proceeds will be invested for a period of 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 wholly into the OMGB USD Protected Global Index 2 Fund, normal Life Account 2 charges will be waived for the full six-year term and only fund charges will apply, adding to the appeal of the product.
Wayne Sorour, head of sales at Old Mutual International, said: “The ongoing volatility in world stock markets is instilling further nervousness in investors who may already be finding it hard to decide where to place their savings or when may be the best time to invest.
“The OMGB USD Protected Global Index 2 Fund can help solve both these issues, as the potential returns from the investment have already been defined.”