The Royal Skandia US3 Autocall Fund, issue 1, is available until 10 October through a Royal Skandia portfolio bond, and has a five year term.
The fund’s maturity date is directly linked to the share prices of three popular American companies: consumer electronics manufacturer Apple, telecommunications provider AT&T, and health research company Merck.
If shares in the three companies have stayed the same or risen between the start date and anniversary, the fund will “autocall” and pay out the invested capital plus a 10% return.
However, the product will operate for a further year if shares have fallen, giving investors a chance to benefit from 50% growth if stocks are the same or higher on the product’s final maturity date.
The fund is also linked to the S&P 500 index in order to provide investors with a degree of capital protection.
If the index is below 50% of its starting level at the fund’s final maturity, the customer’s capital will be reduced by the proportion it has fallen by.
The fund is denominated in US dollars, and is not available in the UK, Hong Kong or Singapore. The fund has a minimum investment of $5,000 through a portfolio bond, and an initial charge of up to 6%.
International product manager, Prakash Chandramohan, said: “Our objective in designing this fund was to provide customers with the chance of making an attractive USD return of 10% per annum.
“The tax and other benefits of our offshore wrapper provide an added advantage to customers.”
