UK/EUROPE - Scottish Widows International is launching an offshore US dollar with-profits fund and Euro with-profits fund via its international investment bond from January 18.
Mike Smith, international business development director for Scottish Widows, said: Our research shows that many of our customers want to have access to a with-profits fund from Scottish Widows International, but they are looking for underlying investments in currencies other than sterling.
These new funds will be managed by the same investment team that manages the sterling with-profits fund, but the underlying assets will be invested primarily in either US dollars or euros.
Although the value of equities has proved to be volatile recently, there is no doubt that with-profits products are expected to provide good value over the long term when compared with many alternative savings and investment vehicles.
As well as launching these two new funds, it will now be possible to have the international investment bond denominated in euros. This is timely, given that over the early months of this year, the euro is being fully embraced across the 12 countries in the Euro-zone.
By Luke Clancy
The Pensions Administration Standards Association's Margaret Snowdon won the coveted Pensions Woman of the Year award. She tells Stephanie Baxter about lessons she has learned along the way.
Defined benefit (DB) schemes are set to shorn themselves of over £300bn of liabilities between 2019 and 2021 as they continue to mature, Mercer predicts.
This week's top stories include the Competition and Markets Authority issuing its final report for the investigation into investment consultants, and The Pensions Regulator launching its first fraud prosecution.
Many investment portfolios that rely heavily on stock-bond diversification to manage risks may not be protected against inflation surprises. Real assets offer a solution.