Protected Index Portfolio – exclusive to The Retirement Account

Retirement Account - Protected Index Portfolio fund*

A unique fund which can give clients balanced growth, 80% capital protection and volatility smoothing. Without the risk of 'cash lock'.
The Protected Index Portfolio (PIP) fund aims to limit investment risk by ensuring that the investment can never fall below 80% of the highest unit price the fund has achieved. 
Protected Index Portfolio daily fund report

The fund is exclusive to The Retirement Account and invests in an OEIC run by Morgan Stanley, made up of the following three components.

A basket of index funds (the risk asset)

The risk asset provides the growth and invests in a multi-asset passively managed portfolio of exchange traded funds provided by Vanguard and Black Rock (iShares), with asset allocation advice by Square Mile Investment Consulting and Research

A volatility control mechanism automatically set at 8%

In volatile markets, the fund reduces its exposure to volatile assets like equities and moves into more stable assets like cash.

Capital protection at 80% of the highest ever unit price, via a ‘put’ option**

A 'put' option (provided by Morgan Stanley) is used to ensure that the fund's unit price can never fall below 80% of the highest ever price attained. Using this method of protection, rather than simply moving assets into cash, means that the fund cannot 'cash lock' like other protected funds. 

Combining these three components means that PIP can play a valuable role in a drawdown portfolio and is an ideal source of income to fund important expenses.



Read more about this unique retirement investment solution exclusive to The Retirement Account by downloading our range of literature

The Protected Index Portfolio sales aid How PIP works on a daily basis   About the protection The Defaqto PIP report

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Current fund protection levels

The PIP fund fact sheet by Morningstar

PIP customer brochure

Protected Index Portfolio fund fact sheet

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