The Scottish Equitable Insight Investment DTR fund is aimed at long-term investors. You know your clients best, so you'll know which of them might be interested in this fund but here are some suggestions of who we think might find it suitable.
A with-profits bond investor
This fund could be an ideal alternative for an existing with-profits investor. Here's why:
- Similar investment objective - with-profits funds were generally a solution for clients who wanted exposure to equities without the associated risks. A key aim of the Insight Investment DTR fund is to deliver returns in line with long-term stockmarket returns before charges with less risk.
- More asset classes - you normally see a with-profits fund made up of up to four asset classes - equities, fixed income and property. The fund has six, including absolute return funds and commodities. And it has the freedom to invest where the more attractive opportunities lie while staying within the set investment and risk boundaries.
- No market value reduction (MVR) shocks - how many times have you had to explain to your client what an MVR is and why it's being applied? Well with this fund, you won't have this issue again. The unit price reflects the underlying value of the fund.
Looking for a 'one-stop-shop' style fund?
Perhaps your client is looking for a one-fund solution that still offers a balanced portfolio of different asset classes. This could be the answer. It not only gives exposure to shares, fixed income and cash but also to non-traditional investments such as commodities.
Want to consolidate good gains from more risky investments
Maybe your client has an offshore bond invested in more risky funds that have given them some good gains. Now they want to harvest these gains but still have the potential of benefiting from the types of growth associated with stockmarket-linked investments, but with less risk. The Insight DTR fund enables them to do just that. And they could also use it like a 'core' portfolio, with more specialist funds sitting around it.