CitiFirst has launched the UK Autocall Fund, a Ucits III open-ended investment company for the UK IFA community designed to offer investors the potential for attractive predefined returns.
The fund provides the features of an autocall strategy with the advantages of an open-ended, 100 per cent collateralised and regulated Ucits III fund.
“The IFA community has been through a lot this year, with the demise of various plan managers, many changes to the regulatory environment, preparing for RDR, concerns about counterparty diversification within client portfolios, the list goes on,” says Emma Davidson, director, head of UK retail structured product sales for CitiFirst, Citi’s full-service model for structured investment solutions.
“To me, it has become clear that there are elements of both funds and structured products that address these points and we have decided to combine the best of both these worlds to create The UK Autocall Fund.”
The UK Autocall Fund has been designed specifically for the UK IFA community and is intended to be available via fund platforms and offshore insurance bonds.
The fund, which is linked to returns from the FTSE 100 Index of leading UK company shares is designed to deliver potentially attractive, predefined returns to investors over five year investment cycles or shorter if autocalled. Returns of 9.25 per cent p.a. are achievable while benefiting from a level of conditional capital protection. In addition, the fund’s assets are fully collateralised by G7 sovereign debt.
The fund is currently open for subscription with a minimum initial investment of GBP10,000 and subsequent investments of GBP1,000. There is no lock up on investments and redemptions can be made daily.
