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A capital idea

Schroder Unit Trusts has designed a capital-protected fund linked to the Eurostoxx 50 index over five years and two months.

Schroder secure growth formula is a Dublin-based closed-ended fund that invests in bonds and derivatives to provide capital protection. Investors get their original capital back at the end of the term regardless of the performance of the index plus 100 per cent of the average quarterly growth in the index. This is calculated by totalling each quarterly average of the index during the term to produce an overall average which becomes the final level of return.

The fund tracks the Eurostoxx 50 index as opposed to indices like the FTSE 100 because the European stockmarket has fallen further than others, bringing with it a greater potential for growth. The index is comprised of large European companies like Nokia and Barclays.

It is likely to appeal to investors who feel that Europe is a good place to invest but are put off investing directly in the stockmarket because of the risks of volatility.

As the fund tracks the Eurostoxx 50 index without investing in it, investors&#39 capital is protected from downward movements. However, there is a slight element of risk in the underlying investments if the companies issuing the bonds go bust and default on repaying them.

The Eurostoxx 50 index rose from 1,637.47 points on August 22, 1996 to 3,465.73 points on October 22, 2001.


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For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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