Navigatorhas added its first capital protected fund to its platform in a bid to coax nervous investors back into equity investments from cash.
The Safety First Performance Fund, which will invest in Australian equities, offers a 100 per cent guarantee on initial funds invested as at the guaranteed maturity date, offering investors a balance between the need for returns with the security of downside protection from capital loss, according to Navigator research manager Stuart Fechner.
“This is a six year, fixed term investment, targeting investors who are seeking the safety of a guaranteed sum, but want to remain open to the level of growth that equity markets can offer,” he says.
A participation rate will be set at the end of the offer period, and is estimated to be between 100 and 110 per cent of the average quarterly recorded performance in the growth of the four underlying funds —UBSAustralian Share Fund,INGWholesale Australian Share Trust,PerpetualWholesale Australian Fund, and theMerrill LynchWholesale Imputation Fund.
The fund is backed by Societe Generale as capital guarantor, with performance calculated on a quarterly basis.
The fund will be offered exclusively to Navigator and Premium Choice investors, and will be open for a limited period of six weeks, ending 10 December 2003.
Fechner says Navigator may make more protected products available if support and interest in the Safety First fund is positive.
