Offshore provider SG Life is to launch a structured product with returns linked to a fund of funds ...
Offshore provider SG Life is to launch a structured product with returns linked to a fund of funds style portfolio.
The Guernsey-based Dynamic Capital Protected Fund is being offered through the company's offshore bond and will invest in a basket of funds from groups including Fidelity and Schroders. The product is to be invested over eight years from 1 August and offers a guaranteed annual income of 1% per year or 108.6% capital protection on the growth version.
Investors in the sterling-denominated product also gain exposure to upside returns generated by the underlying funds. Among these are the SG Asset Management Alternative Diversified Fund, Schroder UK Mid-Cap, Fidelity Special Situations, Martin Currie UK Growth and Merrill Lynch International Investment UK fund. It also invests in US funds from Axa Rosenberg and ABN Amro and a European equity income fund from ING.
The product will be actively managed at fund selection and asset allocation level with decisions made by sister company SG Hambros Bank & Trust's asset allocation committee.
The company said the fund will be able to guarantee the capital using its constant proportioned portfolio insurance model which increases equity exposure when markets are rising while increasing fixed income when markets are falling. The fund will have a 5% initial charge and a 1.2% AMC. There is a minimum investment of £50,000.
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