Morgan Grenfell Asset Management is returning to the retail market with a protected unit trust modelled on its institutional managed risk equity fund.

The All-Weather equity fund aims to provide an element of protection to investors who are seeking exposure to equities but are uncomfort-able with the perceived risk.

But the biggest challenge will be for Morgan Grenfell to win the confidence and support of IFAs stung by the Peter Young affair of September 1996.

Fund manager Young was sacked by Morgan Grenfell for gross misconduct after irregularities were discovered in two European funds – European growth and Dublin-listed European capital growth.

Morgan Grenfell Investment Funds managing director Frances Davies says the group deliberately waited until compensation was fully paid before launching its first fund since the Young scandal.

She says: "The Peter Young issue was confined to him and three unit trusts. The compensation is out the way. Let&#39s get the show back on the road. IFAs want to support Grenfell again and this has given them a product to latch on to."

Fund manager Shaun Coleman, who manages the existing pension version of the new fund, says Morgan Grenfell is optimistic about the UK equities market for 1998 but there is a big demand for protected investment products.

The fund will invest 98 per cent in equities and 2 per cent in derivatives which will provide an element of protection by limiting stockmarket falls.

Launch period for the fund is February 9-20.

Pep investors will receive a 2.25 per cent discount on the standard initial charge of 5.25 per cent. Annual management charge is 1.5 per cent.

Commission is 3 per cent initial and 0.5 per cent rene wal for both the Pep and unit trust.