Category Investments

Old Mutual International launches new protected fund

02 November 2011 Old Mutual International
Wayne Sorour, head of sales at Old Mutual International

Wayne Sorour, head of sales at Old Mutual International

Old Mutual Internationalannounces the launch of the OMGB USD Protected Global Index fund offering full capital protection and 165% participation rate o­n the averaged investment growth of the portfolio when held for six years until maturity. The fund could be attractive to investors concerned with the current volatility in world stock markets but still want the potential to benefit from any future increases in valuation levels.

The OMGB USD Protected Global Index fund is available for new investments into Old Mutual International’s Life Account 2 product and provides exposure to the equity markets of Brazil, China, Euro Zone, India, Japan, Russia, the UK and USA.

The Portfolio is weighted o­n the basis of the size of the respective economies to give a greater allocation to those countries that are expected to grow the fastest, such as the emerging markets, and has the potential to outperform more traditional global equity benchmarks.

The protection element is provided by the leading global financial giant, Morgan Stanley, renowned for its expertise in the structured products sector and currently rated ‘A’ and ‘A2’ respectively by the Standard & Poor’s and Moody’s rating agencies.

The fund, whichis available to new investments o­nly, was made available from the 28th October for a period of six weeks at the end of which the proceeds will be invested for a period of 6 years. At maturity, the value of the portfolio will be switched into the OMGB USD Money Market fund and thereafter, investors will have access to the full range of Life Account 2 investment choices.

Whilst invested wholly into the OMGB USD Protected Global Index fund, the normal Life Account 2 charges will be waived and o­nly fund charges will apply, adding to the appeal of the product.

Wayne Sorour, head of sales at Old Mutual International, comments:

‘Investing in stock markets can be very rewarding when markets are rising, but investors can be exposed to painful losses when markets fall. The recent market volatility has, yet again, reminded us of this.

‘The ideal for many investors is a vehicle that allows them to enjoy growth should markets rise, but which is designed to return their original capital should markets fall.

‘The OMGB USD Protected Global Index fund has been designed with the aim of meeting that need. This USD denominated fund aims to capture the positive performance of a selection of leading developed and emerging equity market indices, while returning at least 100% of the contribution at the end of a six-year term.

‘It is a win-win proposition and we are delighted that a protected investment option is now available o­n Life Account 2."

The Old Mutual International Life Account 2 product is a single contribution unit-linked whole of life assurance contract. As a life assurance policy, it provides a number of tax-related benefits and is a flexible method of investing offshore, with the potential for long-term growth.

Quick Polls


What do you consider the most significant challenge in implementing the Two-Pot Retirement System?


Coping with new, unfinalised legislation, leading to uncertainty in implementation
Adapting to brand new claim types, requiring the development of digital, member-initiated claims capabilities
Addressing member education and awareness to correct misconceptions and ensure understanding of the system, including tax implications
All of the above
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now