The RS US3 Autocall Fund is available via the Royal Skandia Portfolio Bond range and is open for investment until 28 November this year.
The fund aims to give defined capital growth of 10% for each year of investment and can mature early if the shares of the three companies are flat or positive compared to their starting level on any anniversary date.
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.
It is available in in USD and available in all regions except the UK, Singapore, and Hong Kong.
It has a minimum investment of $5,000 through a portfolio bond, and an initial charge of up to 6%.
The first edition of the fund was launched earlier this month and tracked the share prices of three popular American companies: consumer electronics manufacturer Apple, telecommunications provider AT&T, and health research company Merck.
International product manager at the company, Prakash Chandramohan, said at the time: “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.”
