UK investors in Skandia's Protected Portfolio Investment (PPI) Accelerated Return option will shortly receive 121% of initial capital three years ahead of schedule after the plan matured at the end of last month.
The investment is paying out three years early and before the maximum six-year term, because the underlying portfolio of mutual funds achieved its target growth.
Investors now have three options: to roll their proceeds into the next issue of Skandia’s protected portfolio investment which is available until October 15; to receive a cheque by way of settlement, or to transfer the proceeds of the plan to another manager.
Graham Bentley, head of investment marketing at Skandia, comments: “The early maturity of this investment is great news for clients. The performance has truly lived up to expectations and the product has done exactly what it is designed to do. Clients that choose to receive a cheque can benefit from a windfall ahead of time, or alternatively choose to reinvest. For many clients, a protected investment is an attractive option, especially at a time of turmoil in the markets.”
This is the third tranche of Skandia's protected portfolio investment to pay out early because of strong performance. The product, which has four investment options, has been designed to allow investors to enjoy growth should stock markets rise, but with a safety net of up to 100% capital protection should markets fall.
The latest tranche of Skandia’s PPI is now open and offers a fixed term of five years, with increased participation rates in three of the four options.
The investment is linked to the performance of an investment portfolio comprising five UK-based investment funds: Artemis Income fund, Schroder UK Mid 250 fund, New Star UK Alpha fund, Norwich Property trust and Invesco Perpetual Corporate Bond fund.
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