Old Mutual International has added a protected fund to the range of investment funds available in its Life Account 2. The OMGB USD Protected Global Index fund offers full capital protection and participation rate in the averaged investment growth of an index basket providing exposure to the equity markets of Brazil, China, the Eurozone, India, Japan, Russia, the UK and the US.
The six-year USD-denominated fund will pay a participation of 165% in the average performance of a basket of indices comprising the S&P500 (30%), the Eurostoxx50 (25%), the Hang Seng China Enterprises index (15%), the Nikkei225 (10%), the iShares MSCI Brazil (5%), the WisdomTree India Earnings fund (5%), the Russian depositary index (5%), and the FTSE100 index (5%).
Wayne Sorour, head of sales at Old Mutual International, said the underlying portfolio will be weighted on the basis of the size of the respective economies, giving a greater allocation to those countries that are expected to grow the fastest, such as the emerging markets, and have the potential to outperform more traditional global equity benchmarks.
The capital protection will be provided through Morgan Stanley's global index-linked note. Morgan Stanley's has an 'A' credit rating from Standard & Poor's. The product will be available until 9 December.