UK – Isle of Man-based capital protected products specialist Scottish Life International (SLI) has launched a new guaranteed growth fund, the Protected Term Deposit (PTD) Series I, aimed at self-administered pension schemes.
SLI says the new fund’s guaranteed growth rate will be 10.2% per annum, with further potential gains of 51% over five years. “We can guarantee this because the growth is linked to the initial investment amount, which is fixed from the outset, and not dependent on indices which fluctuate,” says David Gray, product marketing manager at SLI.
The fund is nonetheless benchmarked against the FTSE 100, S&P 500 and EURO STOXX 50 (Europe) indices to generate additional growth. The fund will be open to investors between May 13 and June 19, though it may need to close before June 19, depending on the take-up.
Gray says the fund is aimed at ‘small’ self-administered schemes (SSAS) because of their greater asset allocation freedom. “With SSASs, we often find that trustees are free to invest the plan’s assets where they like, unlike larger schemes which are often tied by investment strategies and restrictions,” he comments.
SLI, part of the Royal London Group, has $1.2bn (€1.4bn) under management.