The OMGB Protected Return Fund has been designed in collaboration with BNP Paribas and aims to provide investors with 100% capital protection as well as an additional return on the money invested if held for five years until maturity.
It will provide investors with the greater of either 5% yearly compounded return on the sum invested or the equivalent of 50% stock market growth achieved during the product’s five year life span.
Investors can invest in the fund in either sterling or dollar. Those investors using sterling to invest will see their return linked to the performance of the FTSE 100, while those using dollar will be linked to the S&P 500.
Wayne Sorour, head of distribution for Old Mutual International in South Africa said: “A recent analysis into money movements in and out of our investment funds has shown that investors in South Africa have been reducing significantly their cash holdings during the first half of this year.
“This suggests that investors are expecting more favourable returns to be delivered by sectors other than cash deposits. However, choosing an asset class which can limit downside losses in volatile markets is not an easy task. With this in mind, we have designed this product, which is suitable for investors who are looking for a fixed return and are prepared to stay invested for five years.”
The OMGB Protected Return Fund will be available to investors for a period of eight weeks from 27 August 2012 until the 19 October however, it may close sooner if it becomes oversubscribed. At maturity, the value of the portfolio will be switched into either the dollar or sterling variants of the OMGB Money Market funds and thereafter, investors will have access to the full range of Life Account 2 investment choices.
The fund is available exclusively to clients who are investing in a new Life Account 2 contract and who wish to place 100% of their contribution into the fund.
Life Account 2, available from Old Mutual Guernsey, is a single contribution unit-linked whole of life assurance contract.
