Manor Park is aiming to deliver stockmarket returns for low-risk investors by introducing a second tranche of its Guaranteed UK Accelerated Growth Fund.
This offshore fund is linked to the FTSE 100 Index and provides a guarantee that all the original investment will be returned at the end of the five-year term, no matter how the stockmarket performs.
Investors will also get up to 120 per cent of the average growth of the FTSE 100 during the same period. Taking an average over the term is designed to protect the investor from sharp falls in the stockmarket, but it also means they will be unable to take full advantage of exceptional highs.
The stockmarket has recently fallen slightly so investors can enter the market at a lower point. The fund is likely to attract clients who are looking to maximise low-risk investment over the long-term. But some investors may not find it so appealing because of its inability to grow beyond five years.
Similar capital protected investments tend to offer up to 60 per cent of the average growth of the FTSE 100. Manor Park is aiming to double that.