Skandia is to allow investors to drip-feed investments into its funds over periods of up to six mont...
Skandia is to allow investors to drip-feed investments into its funds over periods of up to six months.
The Phased Investment Fund Choice programme has been designed to enable more cautious investors to invest gradually into the markets, said Chris Linpow, investment marketing manager at the group.
Investors can choose their own feeder fund, usually a deposit fund, and then gradually switch their investments into up to 10 investment portfolios over a three or six-month period.
Linpow said: 'For example, a pension client could invest £10,000 in the Skandia Deposit fund. Over a three or six-month period, a proportion of the investment is then switched equally each month into the target funds chosen by the client.'
The group will allow investors to automatically rebalance portfolios from 1 September 2001. Linpow said: 'Clients will choose at the outset what percentage of their investment they want in certain areas. They can choose to have their portfolio re-assessed every three, six, 12 and 24 months. At these points, the portfolio will be restructured so the investment is in line with the individual's original specified percentage and spread of funds.
'Many investment strategies now revolve around a fixed target fund or asset allocation position. Portfolio re-balancing offers a way to constantly keep the investment at previously targeted proportions.'
Both services work across Skandia's unit-linked multi-manager products, including multipension and funds available through Multifundshop, the Skandia fund supermarket, and are available only for single premium investments.
Phasing and portfolio re-balancing will initially be available in a paper-based format, although Skandia intends to develop an online facility in the immediate future.Investment Week 3 September 2001
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