Royal Skandia launches protected fund

Royal Skandia has launched a risk-targeted fund with downside protection, available to retail investors through Royal Skandia’s offshore Portfolio Bond range.

The fund invests directly into the Skandia Shield fund. It has been developed alongside research done by Skandia in the last quarter of 2011, which showed that 55% of international financial advisers believe customers have become more risk averse over the past few months and 80% of advisers say they are now more likely to recommend protected products as a result of recent market volatility.

Dean Bowden, chief investment officer for Skandia International said: “For those investors who can’t afford, or simply don’t want, to take the chance and potentially experience even deeper price falls than we have seen recently, protected funds can provide the optimal solution. The Royal Skandia GBP Shield Fund is offering a high degree of capital protection together with the potential to benefit from rising stock market prices in future. And because the fund is daily traded, investors can dip in and out as frequently as they wish, whilst taking full advantage of all the benefits that this unique fund has to offer.”

The Royal Skandia GBP Shield Fund is managed to a target volatility of 8%, offering downside protection of 80% of the highest ever share price achieved by the fund. Downside protection is supplied by a separate derivative. The performance of the underlying portfolio is based on total returns, paying out dividends as well as share price gains.

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