Protected Portfolio Investment

Investing in stock markets, bonds, or even property carries risk; and the danger of loss is fresh in many investors’ minds. Protected or structured products allow you to guard against risk, offsetting the potential for performance against the security of capital protection.

Skandia have a range of Protected Portfolio Investment products that are transparent and clear about their structure, and the level of protection they offer. We offer the opportunity to profit from a percentage of any growth in a defined ‘basket’ of funds, with a safety net for some or all of your capital should the fund value fall. While you only capture a percentage of the full growth in the good times, you should not be exposed to absolute loss in bad times. You select the option that gives the protection you require, with the corresponding percentage of growth you can benefit from.

Skandia’s Protected Portfolio Investment range can be accessed via an ISA or directly, making them suitable for a wide range of investment planning needs.

Protected products may be an ideal way for the cautious investor to re-enter the market, but they are not without risk and you must ensure you fully understand the nature of the products offered. Speak with your financial adviser before investing.

At the end of the term your capital is protected with this investment - not guaranteed. The capital protection does not apply if you encash the investment before the end of the term.

Morgan Stanley & Co. International Limited is the Plan Manager for the Protected Portfolio Investment. In that role, they will invest your money into the Plan Investments, which are expected to have the characteristics required to meet the objectives of the Protected Portfolio Investment. The Plan Investments are expected to be Preference Shares, listed on the Channel Island Stock Exchange. Any assets or contracts which support these shares will be issued by institutions rated 'AA -' or better by Standard & Poor's, or Moody's equivalent rating at the time of purchase. The exception being Morgan Stanley & Co International Limited, who are rated 'A +' and may act as counter party on financial contracts supporting the Plan Investments. An issuer rated 'AA -' is defined as having very strong financial security characteristics.

This is not a guaranteed investment.

In the event that any of the Plan Investments or any of the institutions issuing the underlying assets fail to meet their obligations for any reason, the investment will not be able to pay out the expected amounts.

For more information about our current range of Protected products please contact your financial adviser.

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Information on this website is not intended for Hong Kong residents. Information on this website about Skandia Group Companies is intended for UK residents only, unless it relates to Royal Skandia, Skandia Life Norge or Suomen Sivuliike. Skandia Group companies do not offer investment advice and no information on this website should be construed as such.

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