Protean launches gilt-backed bond

Protean Investments has launched a six-year gilt-backed bond which aims to shield investors from rising inflation and the possibility of a company default.

The RPI Plus Note carries a projected return of RPI plus 3% annually. The bond is fully collaterised with UK government debt.

Protean explains the inherent risks behind the note as benchmark-orientated rather than through exposure to a company default; “Investors’ capital is at risk only if the FTSE 100 Index halves, in which case investors will be affected by any market fall at the end of the 6-year investment term.”

Protean is sceptical on the potential of a large percentage of actively managed funds.

It adds: “The performance of many hedge and absolute return funds have disappointed and failed to justify high levels of fees.”

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