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Skandia takes a global view

Skandia

Protected Portfolio Investment – Global Vista Fund

Type: Capital-protected fund

Aim: Growth linked to an equally weighted basket of funds comprising AXA
Framlington emerging markets, Henderson European opportunities, Invesco
Perpetual global bond, M&G global basics and Schroder US smaller companies

Minimum investment: £3,000-no maximum, Isa £7,200

Term: Six years

Return: 85% of the growth in the portfolio at the end of the term

Guarantee: Original capital returned in full regardless of the performance
of the underlying investments

Closing date: May 15, 2009, May 1, 2009 for Isa transfers, April 5, 2008 for
Isa

Commission: Initial 3%

Tel: 023 8033 4411

This product from Skandia provides 85 per cent of the growth in a portfolio
of five investment funds and full capital protection is provided at the end
of the six-year term, regardless of the performance of the portfolio.

Baronworth Investment Services director Colin Jackson thinks this is a very
attractive product, particularly in this economic climate. “Funds are
invested into a portfolio of five globally focused investment funds with
equal weighting. The funds are actively managed and cover a wide range of
assets and sectors. This should go a long way to producing an attractive
return to investors,”he says.

Any dividend and interest income from the funds, net of any tax, is
automatically reinvested. Jackson believes this should boost the growth
potential. “This is a six- year investment. At the end of the term it is
designed to pay back 100 per cent of the initial investment plus 85 per cent
of the average growth of the portfolio. It could be an ideal product for
those clients who are looking for growth, as opposed to income, and are
prepared to tie their money up for six years.”

Jackson notes that the investment can be put into an Isa wrapper to make any
returns tax free. “Returns outside an Isa wrapper are taxed as a capital
gain which is a major advantage as most people in the UK do not use their
capital gains tax exemption. This makes the investment potentially tax free,
leaving investors to use their Isa allowance for something else.”

He adds that the literature is attractively produced and easy to understand.
“Commission is in line with the market at 3 per cent, although there is no
renewal.”

Looking at the less appealing features, Jackson says: “The participation
rate is attractive, as is the return of capital at the end of the term,
there is quarterly averaging over the life of the investment that could
limit the returns in a rising market.”

Looking at possible competitors, Jackson says he could not find any products similar to this.

Summing up, Jackson says: “Skandia has an excellent name in the market. Its
choice of funds cannot be criticised, so all in all, this could be of
enormous appeal to investors.”

BROKER RATINGS

Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good

Overall 9/10

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