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Friends in protected global fund deal

Friends Provident has set up a protected global growth fund for

investors in its investment portfolio bond.

The fund is aimed at cautious investors and those looking to

diversify their portfolios by providing access to growth in world

stockmarkets while offering some protection against a downturn.

To provide the protection element, the majority of the fund will be

invested in fixed-interest securities from institutions with a

Standard & Poor&#39s credit rating of at least A.

The remainder of the fund plus any interest earned will be invested

in stockmarket instruments such as index futures and options which

give the exposure to the glo-bal markets.

The benchmark for the active element will be 30 per cent in the UK,

Europe and North America and 10 per cent in the Far East.

The protected price level at launch will be 90 per cent of the bid

price. This level will be reviewed annually on January 31 and the

level increased to 90 per cent of the bid price at that time although

the level is at the discretion of the fund manager&#39s F&C

Management if stockmarket conditions are considered right.

The fund has no initial charges and the annual charge is 1.5 per cent.

Managing director Ben Gunn says: “The launch of the fund extends the

appeal of our investment portfolio bond to a wider audience. With the

recent turbulence in world stockmarkets, we expect the fund to prove

extremely popular for the more cautious investor who still wants to

benefit from the potential growth of equity markets while reducing

risk.

“The fund is also suitable for sophisticated investors wanting to

manage their portfolios actively and cost-effectively with an

efficient product wrapper.”

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