UK - Nvesta is launching a five-year fund with income and growth options based on the performance of the FTSE100 and S&P500 indices.
The fund offers two return options – dynamic and cautious.
Under the “dynamic” option, investors will get five annual payments of 8.1%, 0.65% monthly or 43% at maturity. With the cautious option, investors will receive five yearly payments of 6.1%, 0.47% monthly or 33% at maturity.
Neither option requires any growth in either index to provide the maximum benefits.
But should either index fall by more than 30%, the capital reduction would be 1% for every additional 1% index fall with the cautious option and 2% per 1% index fall with the dynamic option.
The initial level of the index will be taken on September 19 and the final level will be the lowest level at the close of business between July 3 and October 3, 2008.
Nvesta managing director Graham Devile said: “We have tried to create a structure that offers investors a good balance between attractive returns and protection.
“It is designed for those people who accept the risks related to equity-based investments, and we believe it fits neatly in a balanced portfolio.”
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