The Skandia Shield Fund is an investment with a difference. It enables you to take advantage of the opportunity for long-term capital growth offered by the stock market – and to lock in that growth – whilst limiting the extent of any potential loss to 20% of your investment. The fund aims to protect the value of your investments, so that when you sell them the price you receive will be at least 80% of the highest price the fund has achieved since its launch.
The Shield Fund’s performance is derived from a diversified portfolio of international investments and cash, but its growth and its protected fund price are provided by means of contracts with organisations known as counterparties. The fund’s investment manager Commerzbank, the second largest bank in Germany, is the main counterparty. Other counterparties provide the cash (or cash alternatives) that form part of the fund’s portfolio. These may vary during the life of the fund.
Commerzbank’s credit rating is currently A, the third highest rating that rating agency Standard & Poor's can give. Further detail is available on Commerzbank's website.
If you would like more information on the Skandia Shield Fund and to find if it may be suitable for your needs please speak to your financial adviser.