BNP Paribas is set to make two capital-protected OEIC funds from its recently-launched Privalto range available to UK investors.
Stabiliser and Stabiliser Plus will be the first of a number of structured OEIC products designed for UK-based financial advisers, it says.
The Stabiliser fund offers advisers up-front commission, it adds, while Stabiliser Plus is suitable for fee-based models. Both funds will be available from 15 September, including on platforms Cofunds and Transact
BNP Paribas says the Stabiliser funds offer investors capital protection and the potential for capital growth via access to an absolute return investment strategy - the BNP Paribas Millennium 10 Europe Express Index.
It says at the funds’ maturity in six years, investors will benefit from capital protection at 100p per share in addition to a geared participation in the index’s final positive performance.
BNP Paribas says the Stabiliser funds are suitable for investment within ISAs, SIPPs, SSASs and offshore bonds.
Stephane Goursat, head of structured product sales for the UK and Europe at BNP Parisbas, says: “Given ongoing uncertainty over equity markets, advisers are placing increased emphasis on protecting clients’ portfolios against downside risk.
“To facilitate this demand, Privalto UK intends to develop further structured funds. Each offering will have a distinct investment theme, but all will share common characteristics of capital protection, transparency, liquidity and tax efficiency.”
Sisouphan Tran, head of Privalto UK, adds: “The Privalto UK Stabiliser Funds are designed to offer absolute returns combined with capital protection as part of a diversified portfolio.
“The funds can be used as an alternative to secure part of an equity portfolio or, indeed, to enhance returns within a bond allocation, with minimal credit risk. Reaction from intermediaries over a recent series of roadshows has been extremely encouraging.”
Minimum investment is £1,000 in the Stabiliser fund and £10,000 in Stabiliser Plus. Initial commission on Stabiliser is 3%, with 0.5% trail.
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