Skandia offers protected FTSE fund
From Products Jan 26 2012 BY: Will Jackson
, Contributing editor
, International Adviser
Skandia International has launched a structured product, offering exposure to the performance of UK equities.
The Royal Skandia GBP Protected FTSE TM 100 Fund provides capital protection and an investment return equivalent to 152% of the growth in the FTSE 100 Index, if the fund is held for five years until maturity. The protection element is provided by Morgan Stanley.
The fund, which is available exclusively through the Royal Skandia Executive and Collective Offshore Bond products, is aimed at sterling investors.
“The continued volatility in global stock markets is adding to the prevailing investor nervousness and this can be detrimental – especially when markets stabilise and settle on an upward trend," said Phil Oxenham, marketing manager at Skandia International.
“The ideal choice for many investors is a vehicle that allows them to enjoy growth should markets rise, but which is designed to protect and return their original capital should markets fall. The Royal Skandia GBP Protected FTSE TM 100 Fund has been designed with the aim of meeting that need.”
Following an eight-week offer period, which began yesterday, proceeds will be invested for five years. At maturity, the value of the holding will be switched into the Royal Skandia GBP Deposit Fund, giving investors access to the full range of assets available to the Executive and Collective Offshore Bond products.