Protected With Bonus sub-funds


How the sub-funds work

The Protected With Bonus range offers a choice of single index sub-funds linked to the major stock markets around the world. The single index sub-funds are:

  • Protected UK With Bonus sub-funds - linked to the FTSE 100 index
  • Protected US With Bonus sub-funds - linked to the S&P 500 index
  • Protected Europe With Bonus sub-funds - linked to the EURO STOXX 50 index
  • Protected Japan With Bonus sub-funds - linked to the Nikkei 225 index
  • protected.com With Bonus sub-funds - linked to the Nasdaq-100 index.

Investors can also choose to invest in a sub-fund offering exposure to a range of investment markets.

Protected Multi Index With Bonus sub-funds - will passively allocate the investment across Europe, Japan, the UK and the US according to the size (also known as market capitalisation) of each market.

Protected Worldwide With Bonus sub-funds - this sub-fund automatically spreads and rebalances investors' funds equally across each of the five single index stock markets - including protected.com With Bonus - at the beginning of each quarter.

A worked example (full bonus)
Consider an investor who has an investment worth USD20,000 at the start of the quarter and has selected the Protected Europe With Bonus sub-fund. The EURO STOXX 50 index starts the quarter at 2,000 and the predetermined bonus for this sub-fund is 10%.

Let us say that, despite a 10% market fall at one point during the quarter, the EURO STOXX 50 recovers and ends the quarter where it started at 2,000. Because the index has not fallen the investor will receive the full bonus of 10%.

Protected amount: 95% of USD20,000 = USD19,000
Bonus: 10% of USD19,000 = USD1,900
New investment value: USD19,000 + USD1,900 = USD20,900

So the full bonus is paid even if stock markets do not rise.

A worked example (partial bonus)
Let us say that, despite a 15% market fall during the quarter, the EURO STOXX 50 partially recovers and ends the quarter having fallen 2% at 1,960.

Protected amount: 95% of USD20,000 = USD19,000
Bonus: 6% of USD19,000 = USD1,140
New investment value: USD19,000 + USD1,140 = USD20,140

So - in this example - a partial bonus of 6% is paid even though the stock market has fallen.

These figures are for example only and are not guaranteed.