Apollo Multi-Asset Management says it is about to reach £100m in assets under management and has added its second-bestever structured product to its balanced managed and cautious managed funds.
The multi-manager asked Catley Lakeman Securities, which helps to create structured products for asset managers, to price the snowball autocall product with its various investment bank contacts.
The resulting product is linked to the FTSE 100, S&P 500, Eurostoxx 50 and Nikkei 225 indices for up to five years. Apollo will receive a 22 per cent return if the worst performing index is above its current level after one year. If it is lower, the product will continue until year two, when 44 per cent will be payable on the same basis. If it rolls over to year three, 66 per cent will be paid and so on until the product matures at the end of year five.
Apollo will also receive a full capital return unless one of the indices falls by more than 50 per cent.
Fund manager Tom McGrath says: “This is our second best strike ever – the first was when Lehman Brothers went under. We are happy with this strike and with the level of protection it gives us. We have 4 per cent in our balanced managed fund and 3 per cent in our cautious managed fund.”
McGrath adds that the Apollo funds’ availability on the Axa Elevate platform completes the process of getting onto the platforms the company wants to form relationships with.
He says: “Around 90 per cent of our business comes through platforms so we thought if we are going down that route, we should get on every platform we can.
“The funds are growing – we began with £45m in assets and we are now about to hit £100m.”