Skandia unveils protected Shield fund

Skandia has launched a multi-asset risk-targeted protection fund which will limit losses to 80% of the highest ever share price.

The Shield fund is linked to a basket of sixteen different UK and international asset classes and a cash holding. Asset allocation of the investments held in the basket will be controlled to remain within a volatility target of 8%, equivalent to a risk rating of four out of 10 on Skandia's risk scale (10 being the highest risk). In addition, the fund relies on a separate derivative to provide the downside protection, rather than cash. Skandia says this means the fund will always retain its exposure to the underlying portfolio, allowing it to benefit when an upturn occurs. The fu...