26 January 2012
Skandia International, the offshore business of Old Mutual Wealth Management, announces the launch of the Royal Skandia GBP Protected FTSE TM 100 Fund. The aim of the new fund is to offer full capital protection and an investment return of 152% of the average growth of the FTSE 100 index when held for five years until maturity. The fund, which is predominantly aimed at Sterling investors, could be attractive to those concerned with the current volatility in world stock markets but still want the potential to benefit from any future increases in valuation levels.
In a recent study* conducted by Skandia International, a significant 80% of financial advisers stated that as a result of the ongoing stock market volatility they are more likely to recommend protected products to their clients now than they had ever done before. Almost 20% indicated they would allocate up to 20% of a client's portfolio to these vehicles, whilst over 15% felt they would advise as much as 30% of clients' assets is placed in protected funds. Over 81% of respondents believe the most appealing feature of structured products to be the protection of capital.
The Royal Skandia GBP Protected FTSE TM 100 Fund is available exclusively through the Royal Skandia Executive and Collective Offshore Bond products.
The protection element is provided by Morgan Stanley, renowned for its expertise in the structured products sector and currently rated 'A-' and 'A2' respectively by the Standard & Poor's and Moody's rating agencies.
The fund, which is available to new and existing investors, is open for investment from the 25th January 2012 for a period of eight weeks at the end of which the proceeds will be invested for five years. At maturity, the value of the holding will be switched into the Royal Skandia GBP Deposit fund and thereafter, investors will have access to the full range of assets available to the Royal Skandia Executive and Collective Bond products.
Phil Oxenham, marketing manager at Skandia International, comments:
"The current economic predictions seem to suggest that 2012 may prove to be yet another unstable year for 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.
'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. This fund aims to capture the positive performance of the FTSE 100 Index while returning at least 100% of the contribution at the end of a five-year term.
'We are delighted to be enhancing the range of Portfolio Bond assets further by offering new and tailored protected investment options."
*The Offshore Adviser Confidence Barometer research was conducted by Skandia International in Q4 2011 and attracted responses from over 450 advisers from around the world – Hong Kong, Singapore, Dubai, UK, Europe, Africa and Latin America.
This press release is for journalists only and should not be relied upon by financial advisers or customers.