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Zurich protects profits on bond

Zurich Financial Services is offering a protected profits fund for investors in its sterling bond and Isa range that allows investors to switch from equities to cash and guarantees the final value of the fund.

Developed with Barclays Capital, the sterling protected profits fund guarantees to pay out at least 80 per cent of the fund&#39s highest-ever value, making it suitable for cautious investors, according to Zurich.

The fund invests in a combination of three Threadneedle Asset Management equity funds – UK (institutional) growth, European growth and American growth – and a cash fund, with a maximum of 70 per cent in equities and a minimum 30 per cent in cash.

The fund allows investors limited switching into and out of the fund at any time across all sterling products and the full sterling fund range without charge.

The fund has an extra annual charge of 0.25 per cent on top of the 1.5 per cent sterling Isa charge and 0.6 per cent on top of the 1 per cent sterling bond charge. Bid/ offer spreads apply on both options.

Zurich customer and communication director, UK, Ireland and international life Kevin Ronaldson says: “We have developed the only continuously available protected fund in the market that allows cautious investors to dip a toe back into equities. It is particularly appropriate for investors keen to take advantage of improving market conditions but wary of ongoing volatility normally associated with equity investments.”


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