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Julian Gibbs

Skandia is launching an excellent new protected Isa. It is designed to give investors the best of both worlds – the security of high levels of capital protection combined with the opportunity to benefit from the growth achieved from top-performing unit trusts.

There are two options. The first provides a minimum capital return of 100 per cent plus 100 per cent of the average quarterly capital growth of the underlying funds over the term of the product.

The second option, which I prefer, provides a minimum capital return of 80 per cent plus 200 per cent of the quarterly average growth of the underlying funds.

The term of this structured product is six years and three months and, unlike other products of this kind, there is no limit to the maximum return investors can receive.

The funds chosen are all first class. Thirty per cent is invested in Fidelity special situations, which is one of the top 10 performers out of the UK all companies sector of about 290 funds. A further 20 per cent is invested the Schroder UK mid-250 fund, which is again one of the top 10 performing funds over one and two years.

To make the plan more balanced, 25 per cent is invested in the Invesco Perpetual corporate bond fund, managed by two fund managers who have the highest Standard & Poor&#39s ratings in their sector. The remaining 25 per cent is invested in the Norwich Union property trust, which is the top performer over five years in its sector.

As the plan is available until April 25, it should prove particularly attractive to investors as they can use their maxi Isa allowance for two tax years. The Isa is particularly useful as a home for investors in underperforming Isas and Peps in current conditions.This should be a highly profitable investment.

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