View more on these topics

CanLife offers protected gold fund from Julius Baer

Canada Life International has teamed up with Julius Baer to provide its investors with a capital protected fund that is linked to the Julius Baer physical gold exchange traded fund.

The CLI Julius Baer physical gold protected fund provides the only way that UK investors can access this ETF with capital protection. The underlying ETF was launched in 2008 and invests solely in physical gold bullion rather than trading in shares of precious metal mining companies.

CLI investors can already access the fund without capital protection, but the company wanted to offer a protected version to investors who are concerned about uncertain market conditions.

The new fund provides 95 per cent capital protection at the end of the five-year term and investors will also receive 100 per cent of the growth in the underlying ETF.

The capital protection is provided by the global investment bank Nomura Bank International, which has been a counterparty to previous Julius Baer structured products. Nomura is experienced in managing the derivatives that are used to provide the capital protection, but as with all structured products of this type, the return of capital is underpinned by the solvency of the counterparty.

Demand for gold is coming from emerging regions such as China and from investors. Production is in decline and capacity is constrained, which could push prices up. Gold prices could also rise either as a result of quantitative easing pushing up inflation or if the recession gets worse because investors use gold safe haven in difficult times. However, prices could fall if the demand dries up.


Recommended

UK prime RMBS mortgage arrears double

Three-month arrears within prime UK Residential Mortgage Backed Securities doubled in Q2 2009 and are likely to increase, according to a report by Moody’s.

The curious market reaction to Brexit

Written by Mike Riddell29 June 2016 Headlines over the past few days have screamed about record falls in sterling, record low bond yields and massive falls in equity prices. However, if you take a slightly longer view of markets rather than simply the one- or two-day reaction, I think it’s amazing how little markets have […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com