Axa Investment Managers is introducing one of the UK's first limited-issue capital-protected Oeics following relaxation of the FSA's fund rules.
The regulatory change allows investment managers to use derivatives as part of their general investment policy and to cap the number of shares in issue. This enables them to design capital-protected funds.
The company says the overhaul of collective investment schemes regulation to accommodate the creation of onshore structured products looks like an acknowledgement of the growing demand for capital-secure investments.
It will market the fund to selected partners in the high-net-worth market and in the private banking and discretionary managers sectors.
Structured and alternative investment management division director Vincent de Martel says: “Oeics can be used not only as a direct investment but also through Isas, life bonds and pension plans. That makes them the ideal choice for capital-protected products.”
Smith & Williamson head of pensions and financial planning Mike Fosberry says: “Many of our clients have been looking for this type of product and we are pleased to have had the opportunity to contribute to its design. It offers the potential benefits of investing in equities while limiting any downside.”