The multi asset rainbow plan provides exposure to global equities, commodities and property and weights the portfolio in favour of the best performing assets, whilst protecting capital.
For equities, investments are marked against FTSE 100, S&P 500, DJ Euro stoxx 50, Nikkei 225. For commodities, investments chart the DJ AIG excess return index and for property, investments track the FTSE EPEU and TSE Reit.
The plan’s look-back feature applies weightings to the individual asset class returns dependent on performance. Fifty per cent is weighted to the best performing asset class, 30 per cent to the second best performing asset class and 20 per cent to the worst performing asset class. This diversification is designed to provide greater return than a standard equally weighted basket return.
At maturity, the client will receive either a full return of capital or capital plus a weighted return subject to the performance of the three underlying asset classes.
Minimum investment is £3,600. The plan is available until 1 September 2008 but will close earlier if oversubscribed.