A new capital-protected fund has been made available exclusively to investors in Friends Provident International's regular savings and investment bond products.
The 80% Global Growth Protector fund is backed by BlackRock and HSBC, with the former supplying the investment expertise and the latter the capital protection.
The fund seeks to generate unlimited returns from a dynamically managed basket of equity assets whilst simultaneously offering an explicit protection level against downside risk, using fixed interest and deposit investments.
The fund is heavily weighted towards the Asian growth story, with 30% of the portfolio at launch invested either directly in the region or in asset classes or sectors expected to benefit from Asian growth. The remainder of the portfolio is invested globally with a more developed market bias.
The fund’s investment strategy is overseen by the multi-asset portfolio strategies team at BlackRock. The core of the portfolio will be in BlackRock retail funds, with a strategic and tactical asset allocation overlay and ‘dynamic rebalancing’ between equities and lower-risk assets to provide additional protection.
The fund can be held directly as a collective investment in the FPIL Reserve Bond, with an annual management fee of 1.2%. It is also available as an FPIL mirror fund at an additional cost of 1.2%.
Commenting on the launch, Jim Henning, funds marketing and research manager at FPI, said: “This exclusive new fund is a welcome addition to our rapidly evolving investment proposition. It is a protected fund concept that has been designed to offer investors unlimited growth potential with the added spice of high emerging markets exposure but not losing the other essential ingredients of risk control and flexibility.”
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