10 March 2014
Skandia International, part of Old Mutual Wealth, is the first provider to structure an Investec Autocall as an internal fund, enabling it to be held within an offshore bond in the UK. This innovative new fund launches today, and will help meet the growing demand for structured capital at risk products to be available through an offshore bond wrapper in the UK.
The fund, called the RS GBP Investec FTSE™ 100 Defensive Autocall Fund Issue 1, is exclusively available through Skandia International’s offshore portfolio bonds in the UK. The fund is designed to repay the initial investment and deliver a return of 7% a year provided the FTSE™ 100 is above a specified level (Autocall level) on a specified date (Autocall date).
The diagram below helps to demonstrate how the product will work:
Alistair Campbell, head of investment marketing at Skandia, comments:
“We are focused on becoming a leading investment business, and this innovative investment solution demonstrates our commitment to delivering real solutions to advisers and their clients. Investec is one of the leading structured products providers in the market today and we are seeing high demand for this type of solution.”
Gary Dale, head of intermediary distribution - structured equity derivatives at Investec, comments:
"We are delighted to be working with Skandia International, a leading offshore investment provider, with this new innovative investment solution. Utilising an offshore bond wrapper together with the pre-defined pay-off profile of a structured investment offers advisers and investors yet more choice in the way they design their investment portfolios."
Skandia International is registered as a business name of Royal Skandia Life Assurance Limited.