Morgan Stanley in the UK has launched its first structured Ucits III-compliant, open-ended investment company (Oeic) through its Irish-domiciled fund platform to be marketed via discretionary asset managers.
FTSETM 100 Accumulated Capital Fund I is a rolling three-year, soft-protected growth strategy linked to the FTSE100. The product is based on a range payoff through which if the underlying is between the 3,200-7,000 range throughout the three-year investment period, it pays a maximum capital growth of 23%.
"We have launched a competitively priced fund which will satisfy investor appetite for synthetic zeros and mitigate counterparty credit risk by using G20 paper," said Nick Coghill, Morgan Stanley managing director, structured products. "This is a demand-driven product, using one of our most popular strategies, for investors seeking a home for cash in a market where there is no strong clarity on direction. The familiar Ucits III wrapper enables offshore bond investments and we anticipate strong demand in that space too."
After three years, the investment strategy is expected to continue, adjusted to prevailing market conditions to avoid investors being exposed to capital gains tax.
Investors' capital is collateralised on a daily basis by G20 government bonds to mitigate counterparty risk. Minimum investment is £100.
This product is available now in Recent Additions (UK, and Offshore and Other).