Keydata Investment Services is launching a third product in its Secure Growth Portfolio series. T...
Keydata Investment Services is launching a third product in its Secure Growth Portfolio series.
The five-year product has a choice of 100%, 90% or 80% capital protection and growth linked to 200%, 150%, or 100% of the average growth of a basket of six funds, depending on which protection option the investor chooses.
Growth is calculated by averaging the monthly prices of the following six funds: HSBC UK Growth & Income, JP Morgan Fleming Premier Equity Growth, New Star UK Growth, Newton Income, Norwich Union Europe and Threadneedle American Select Growth.
Barclays provides the protection behind the product and it will typically invest 75% in cash and 25% in a combination of the funds and derivatives. The bank will use a volatility index to decide when to shift money between the funds and cash. There will be a 3% commission available to intermediaries and there will be no explicit charge on the product.
Mark Owen, director of retail sales at Keydata, argues that the product offers a much more clear structure than many protected products on the market. He said: 'Many structured products invest in individual stocks and do things like taking their price at the lowest point of a day and using that as the basis for returns.'
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