The DWS ratebuster fund aims to deliver returns 2-3 per cent above bank base rate.
It is being marketed to IFAs as a product they can use to draw client cash away from banks and building societies.
The investment element comprises a portfolio of money market securities which are rated A1 or above with a six-month duration and what DWS calls a managed account, which is effectively a portfolio of options which reflect the group’s views on currencies, interest rates and markets.
The capital guarantee runs over a rolling six-month per-iod so the investment is not locked away in the long term.
Head of UK retail distribution Andy Clark says the worst-case scenario over any six-month period is that investors will only get their money back.
Ratebuster is eligible for the cash component of an Isa. The initial offer period is from March 21-April 11. There is no initial charge and annual charge is 1 per cent. Trail commission is 0.25 per cent.
Clark says: “This will significantly strengthen the adviser in their battle with banks.”