8AM Global has launched the UK’s first capital-protected Model Portfolio for advisers, in partnership with structured product specialist IDAD, it said today.
The firm has launched AQ Protected (AQP), a capital-protected investment solution combining the growth potential of an actively managed model portfolio with 100% capital protection, designed for investors seeking equity-style returns coupled with cash-like risk.
The five-year product offers investors full capital protection at maturity while providing exposure to potential returns of up to 40%, with the capital secured by Goldman Sachs.
The product is linked to 8AM Global’s AQ Global 60 portfolio, which maintains 60% equity exposure through a diversified mix of global equity and bond funds, and it incorporates a daily volatility control mechanism managed by Goldman Sachs that adjusts portfolio exposure between 0% and 150% to target 10% volatility, aiming to smooth returns during market turbulence.
Paul Hogg (pictured), head of distribution at 8AM Global, said: “Traditional model portfolio solutions can feel very exposed for pre-retirees or those in drawdown, particularly after recent strong market gains. AQ Protected gives advisers a tool to keep clients invested for growth while removing the fear of capital loss that can derail financial plans.”
