View more on these topics

Axa fund pays dividends and builds in CPPI guard

Axa Investment Managers is introducing a 100 per cent capital-guaranteed structured product with performance linked to the FTSE 100 total return index.

The structure will enable the product to capture dividends as well as capital growth, negating one of the main arguments against investing in such products. Exposure to dividends will be obtained through investing in the swaps market.

The capital-protected fund series 2 will have an onshore Oeic structure and will offer weekly dealing at NAV.

The product has a six-year term and a lock-in feature aims to protect investors&#39 assets. The lock-in will raise the minimum return that investors&#39 will receive and is triggered by the market reaching certain levels at fixed dates.

The product will be available for Isas. Charges are fixed at 1.2 per cent of the original investment payable annually and commission is 3 per cent.

Axa IM has carried out research among its major IFA clients and designed the product to address their concerns. The firm is keen to provide greater liquidity and a constant proportion portfolio structure insurance to guard against any shocks that could send the markets into freefall.

Head of multi-manager Simon Ellis beleives that the CPPI model will be more commonly used as it offers greater protection against downward shocks in the markets.

He says: “CPPI-based products alleviate market-timing issues, as active asset exposure is adjusted automatically to changing conditions.”


FSA turns focus on equity release and pension unlocking

The FSA believes the next two biggest misselling scandals to rock the financial industry will be around equity-release products and pension unlocking. Speaking at a Labour Conference fringe meeting, FSA managing director of retail markets Clive Briault said although he could not predict the next scandal, he admitted that the regulator is looking very closely […]

BOULGER on Mortgages

As lenders and intermediaries prepare for M-Day, it is becoming increasingly clear that some quirks and eccentricities of the impending regulation are going to cause consumer detriment. One such example is in the buy-to-let market. There are strongly conflicting opinions as to whether or not B2L mortgages should have been regulated but I do not […]

Independent view

It is a wet Friday and I have had one of those weeks. There is just one more meeting to go and then home for a weekend of jobs, kids and Monopoly. I practically trudge past the tree at the front of the house and press a small white square that starts playing Suspicious Minds […]


At a recent conference of IFAs, a poll was taken of the 600 delegates to find out how many of them believed their businesses would survive. Fifty per cent said they would need additional capital to withstand the impact of the Sandler and FSA proposals. But what is it about these reports that is so […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment