Scottish Life International (SLI) will launch an offshore multi-index protected fund in October. The...
Scottish Life International (SLI) will launch an offshore multi-index protected fund in October.
The Protected Multi-Fund will comprise four protected portfolios UK, US, Japan, and the recently launched Europe fund, Protected Europe Index, which is linked to the Dow Jones Eurostoxx 50 Index.
Investors can choose one of six levels of protection between 95% and 100%. The less protection taken, the higher the participation rate in the growth of the indices and the potential reward.
The protection level can be changed every quarter and gains from the quarter are locked in before the next quarter starts. Asset allocation of the fund will be passively managed, following the results of computer modelling by SLI's partner Dresdner RCM Global Investors.
Quarterly switching between the whole range of protected funds is free and would not be treated as a capital gains tax event as the funds are based offshore.
John Allison, marketing director at SLI, said: "As we do with the other funds, we will announce the asset allocation decision a week or so before we go out to buy the assets along with the likely returns attached to each protection level.
"Brokers can then decide whether to run with their own asset allocation by investing in each of the funds separately or by going into the multi-fund and following the computer model.
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