Aviva Investors has launched a new growth fund that will focus on securities and derivatives from six financial institutions.
The Aviva Investors Defined Growth Fund 3 carries a six-year maximum term and targets an 11% annual return. Investor capital will be protected as long as the FTSE 100 does not decline by more than 50% from the initial level.
John Clougherty, the chief executive of Aviva Investors UK Fund Services, says: “The Aviva Investors Defined Growth Fund 3 aims to provide a way of mitigating this low yield environment, offering financial advisers and their clients the potential for attractive returns plus a defined level of protection from UK stock market falls.”
The six institutions that will form the focus of the fund’s purchases are; Abbey National Treasury Services, Barclays Bank, HSBC Bank, Morgan Stanley & Co International, The Royal Bank of Scotland and UBS.
No more than 20% will be invested in any one of these institutions at any one time.
A minimum of £1,000 is required for a direct investment and £500 if within a stocks and shares ISA.
The fund plans to open to investment for nine weeks until February 10 2012.
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