The Skandia Shield Fund offers investors who may be nervous about market volatility the opportunity for growth, whilst limiting the extent of any potential loss. Watch our short video for an overview of how the fund works:
The fund is structured in such a way that its share price will never fall lower than 80% of the highest level it has ever achieved. Every time the fund price rises, its protected price ratchets up accordingly – and stays up, even if the fund price falls at a later time. (See how this works below.)
Unlike many other protected investment products, the fund has no minimum or maximum term; it can be traded daily like ordinary funds. It has an estimated TER of only 0.90%.
The Shield Fund’s performance is derived from a diverse portfolio of international investments and cash, but its growth and its protected price are provided by means of contracts with Commerzbank AG, Germany’s second largest bank, rather than by direct investments in market-based assets.
The Skandia Shield Fund is available exclusively through Skandia’s entire UK product range:
The Skandia Investment Solutions Platform, including:
- ISA
- Collective Investment Account
- Onshore Collective Investment Bond
- Collective Retirement Account
The Skandia Life Assurance Company Limited product range, including:
- Skandia investment bonds
- Skandia life plans
- Skandia pensions
Please see the relevant product Key Features Document for details of the minimum permitted premiums.
A full suite of literature is available (see left) with information about the innovative nature of the fund, the particular risks associated with its structure, and the parties involved in providing, managing and protecting it.