Good News - Protection and
the potential to outperform
Scottish Life International's indicative rates for the next quarter
demonstrate that capital protected funds can potentially outperform the index
over the short term, whilst balancing risk and reward.For
example, Scottish Life International's Protected UK Index fund with 95% capital
protection can provide performance that is geared to the growth in the UK stock
market, as measured by the FTSE 100 index.
356.88%
Current
indicative profit rate (stock market participation rate) in sterling for the
Protected UK Index 95 fund (as at 14/2/05)
Whilst the level of protection
offered by this fund means that investors could lose 5% of their capital over
the quarter if the stock market fails to grow, it also means potentially they
could receive 356.88% of any stock market growth added to their protected
amount.
So, for the forthcoming quarter
running from 14 March to 17 June 2005, if the FTSE 100 index increased by more
than 2.09%, then investors in this fund would see their fund outperform the
related stock market!
If returns from the index were
low then the portfolio value may be lower as any growth is only added to the
protected amount. The Protected UK Index 95 fund is a higher risk fund but
offers higher potential reward. safe combination® is suitable for
investors who are more risk averse as they can set their protected amount at
various levels, balancing risk and reward.
A solution to stock market
risk and capital losses
One thing that has become clear is that investors do not want to contemplate a
capital loss. Going back into the stock market is fraught with uncertainty but
many people still regard equities as the most appealing investment choice for
investment growth over the long term.
What if I told you there was an
investment whereby you can ensure the clients' initial capital (before charges)
is constantly protected, you can decide how much risk and reward you are
comfortable with taking and you can lock in and protect market gains? An
investment that can tap into the potential upside of the stock market whilst
reducing the effect of any downside.
The returns and security of the safe
combination® system are directly linked to assets provided by highly
rated and financially strong institutions. In the event that they were to
default on these investments, investors’ capital may be at risk.
Interested?
To find out more email
enquiries@cambrian-int.com
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