The Capital Protected Fund
Capital protection for your clients’ peace of mind.
Welcome to the Capital Protected Fund.
We’ve developed these pages specifically for you, providing you with quick access to all the literature you’ll need to help you understand the product and enable you to sell it to your clients. We’re pleased to have you on board and are looking forward to making CPF a success for you and your clients.
Why is our Capital Protected Fund a suitable choice for your clients?
CPF will provide customers with;
- Original investment back at the “Protection Date”
- 150% participation in the growth of the FTSE 100
- Growth capped at 42% of the amount invested
- CPF is an OEIC product and so offers:
- Transparency – you and your clients can track the progress of their fund weekly online on our Fund Prices page.
- Flexibility – although we recommend against doing this, if your clients so wish, they can pull out of the investment before the Protection Date arrives. It’s important to note that if your clients do this they won’t have the benefit of capital protection, and so they’ll only get back what their shares are worth which could be less than their original investment.
- Initial commission set at 3%
For more details, please refer to the literature.
Changes to the charges
There is no Annual Management Charge (AMC) or Early Exit Charge. There is an Initial Charge (IC) which will be collected, and although deducted at the outset, it is added back to the investment at the Protection Date.
It’s worth noting here that we recommend CPF as a medium to long-term investment. So because there is no AMC and there is an initial charge, you may see only minimal growth on this fund in the first couple of years, if any growth at all.
What happens at the end of the term?
At the Protection Date we will close the fund. Three months prior to this, we will offer customers the following options:
- payment of the proceeds — this is the default option, if we don’t receive a response from the customer;
- investment in another CPF fund (if available);
- investment in a similar structured investment product, depending on what we have available;
- investment into another fund.
If you need any guidance on CPF speak with your Scottish Widows Account Manager or email us.
We look forward to doing business with you.
