ING has added two new capital protected products to its OneAnswer platform, in line with consumer demand during the economic downturn.
Investors can now access both the ING Protected Growth Fund 2 (PG2) and the ING Protected AUS50 Fund (AUS50) via the firm’s investment platform.
Both funds offer immediate capital protection and are not restricted by a set maturity term.
“Both the ING Protected Growth 2 Fund and the ING Protected AUS50 Fund provide daily liquidity and no lock-in restrictions, which is a clear advantage over many other protected funds in the market which may restrict withdrawals for several years,” ING head of retail platforms and employer super Mark Pankhurst said.
The ING PG2 offers a capital guarantee of 85 per cent of the original amount invested from day one while the AUS50 protects 80 per cent of the initial amount.
This level of protection increases for both funds in line with the highest redemption unit price of each offering.
The counter party for the capital guarantee facility on the PG2 fund is the ING Bank and is Barclays Bank for the AUS50 product.
Each fund has a growth focus, with the PG2 using the ING Managed Growth Fund as its underlying asset and the AUS50 investing in a combination of Australian equities listed on the S&P/ASX 50 Accumulation Index and cash.
“For investors, particularly those close to retirement or those looking to re-enter the market, a protected fund allows them to get their money into growth assets for the long term while effectively insuring them against market downturns,” Pankhurst said.
“With these two funds investors have an opportunity to invest in growth assets and access rising capital protection that is backed by bank protection,” he said.
