Skandia launches two fund-based plans with capital protection

Skandia has launched two protected portfolio investment plans that give investors exposure to the returns of a portfolio of actively managed funds with full capital protection factored in. Sales of fund-based products have risen this year, partly in response to investor concerns about credit and counterparty risk, and also as a way of offering transparency and liquidity.

“Products that are fund-based can provide end-investors with exposure to an extensive range of market sectors and regions,” says a Skandia spokesperson in the UK.

The Protected Portfolio Investment Plan is a six-year plan that tracks an equally weighted basket of UK funds consisting of the Artemis Income, Schroder UK Mid 250, Investec UK Specialist Situations, Aviva Investors Property Trust and the Invesco Perpetual Corporate Bond funds. The participation rate is 0.9 times any rise in the funds basket with no cap.

The Global Vista Protected Portfolio Investment is also a six-year plan, with exposure to an equally weighted portfolio of the Axa Framlington Emerging Markets, Schroder US Smaller Companies, M&G Global Basics, Henderson European Opportunities and Invesco Perpetual Global Bond funds. The product offers 0.85 times any rise in the value of the basket, with no cap.

The Global Vista Protected Portfolio is available globally, with the exception of the UK, Hong Kong and Singapore. Both plans are issued by Morgan Stanley.