Foreign & Colonial is preparing for the launch of a derivatives-based fund this October, following o...
Foreign & Colonial is preparing for the launch of a derivatives-based fund this October, following on from the Blue unit trust it brought out earlier this year, writes Adam Lewis.
Philip Childs, director and head of UK retail at F&C, said the group is currently four and half months into its five-year business plan after it re-launched its retail division at the start of the year.
As yet there are few details on the product but Childs said the group is looking to use derivatives to protect capital and income in its forthcoming launches.
Blue was F&C's first unit trust launch in eight years when it came out in January 2001.
It is an income producing vehicle which makes full use of an individual's CGT allowance, by effectively allowing capital gains to be taken as income.
The portfolio aims for annual growth of around 5.5% per annum from an underlying portfolio of overseas bonds, European equities and derivatives.
Childs said: 'At this time we are precisely where we expected to be. Blue has so far taken £10m and at the moment is taking £1m a week so it is on target to reach its £50m target by the end of the year.
'It takes time to build up momentum and impetus but every time we launch a new product our distribution increases and our sales and marketing team are getting more interest from a wider range.'Investment Week 28 May 2001
Targeting intermediary market
Represents £8trn in assets
Simplify and modernise
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