Since its launch in December 2003 the UK Safeguard Optimiser has gone from strength to strength. Based on CPPI (Constant Portfolio Proportion Insurance) methodology the fund uses a formula-driven approach to asset allocation.
The UK Safeguard Optimiser is one of only a handful of funds of this type and in recent months has witnessed another two competitor funds launched. In the past year it has been exposed to a generally rising although quite volatile market, but has held its own to outperform its main competitors, Axa and Sterling.
The fund gains exposure to the UK stock market through one of its two underlying funds, the F&C FTSE All Share Tracker, which is one of only three AAA rated tracker funds (Source Standard and Poor’s). Its cash share is provided by the BGI Liquidity Plus fund a high quality Aaa rated fund (source Moody’s). The majority of its 90-day deposits are AAA rated by Standard and Poor’s.
With a maximum equity content of 70% the fund is in an excellent position to capture market growth whilst reducing the level of risk investors are exposed to. The underlying equity/cash position is published every month on the Friends Provident website (www.friendsprovident.com) along with both the daily updated fund and safeguard prices. This means investors can calculate the protected value of their fund at any time.
The UK Safeguard Optimiser is open-ended with no lock-in, investors, new and existing, can therefore benefit from the same safeguard price at any time. Please be aware that for the first five years early surrender penalties apply.
At FRIENDS® we feel it’s important to offer as much variety to your clients as possible. With this in mind, in June 2004, we launched the Stewardship Safeguard Optimiser. This fund complements the UK Safeguard Optimiser and uses the highly acclaimed Stewardship Growth fund managed by Ted Scott. The Stewardship Growth fund has a rigorous ethical research and selection criteria and as such offers the benefit of the managers increased knowledge and confidence in the underlying stocks. It was one of the original Stewardship ethical funds launched in 1984.
So now investors can benefit from our passively managed tracker fund or its actively managed ethical sister fund, depending on their individual needs. By offering the best of both worlds, these funds can be used individually or as part as an overall portfolio to reduce the client’s risk exposure. They can also be used in conjunction with our comprehensive range of internally managed and ‘best of breed’ externally managed funds.
The UK Safeguard Optimiser and Stewardship Safeguard Optimiser funds are available through the Investment Portfolio Bond and Discounted Gift Bond. Both benefit from a transparent charging structure, with an extra 0.60% deducted for the fund’s protection element. The Friends Provident UK Safeguard Optimiser and Stewardship Safeguard Optimiser funds are not guaranteed funds. In extreme circumstances the protection could be reduced or even removed. The value of a bond and any income from it is not guaranteed and can go up and down depending on investment performance. Investors could get back less than they’ve paid in.
For more information contact your usual Friends Provident consultant or click here to visit our Ifa site.
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