Zurich Assurance has a lunched a new multimanager fund which guarantees the unit price will always be worth 80% of more of it highest value.
Billed as a protected profits fund, the Zurich fund invests a maximum of 70% of the fund in equities but also guarantees the unit price "will never fall below 80% of its highest value".
Any assets not invested in global equities will be held in cash, up to a maximum of 100% cash, and investors have the option of cashing-in or switching in and out of the fund without encountering an MVR-style charge, as would be seen on a traditional with-profits fund.
Investment will be placed in four funds – the Cazenove UK Growth and Income, the Mellon Newton Higher Income, the DWS Investments’ American Growth and the Gartmore European selected opportunities fund while cash will be held in the Barclays Global Investors’ Barclays Liquidity First fund.
Products capable of holding the fund include the Sterling investment bond, which carries a 1.85% charge, as well as Zurich's Isa, Pep transfer plans and the investment account, which have a 1.81% charge, as well as certain Zurich pension products which a fund charge of 0.85%.IFAonline
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