Handelsbanken launches fund with daily guarantee
June 8, 2006
On June 14, Handelsbanken will start an entirely new form of savings in mutual funds: Garantifond Plus.
This mutual fund functions as a common mutual fund does when the market goes up - but it protects investors from major price falls. Investors have a daily guarantee of 80 percent of the highest value ever achieved by the mutual fund.
Joachim Spetz, chief executive of Handelsbanken mutual funds, explains, “This means that the realised increase in value for the investor is protected against a severe market crash.”
Handelsbanken is the first bank in Sweden to launch a mutual fund with a daily guarantee linked to the price of a fund unit.
Joachim Spetz says, “In addition to the security involved in having invested capital and the increase in value guaranteed at 80 percent of the highest price ever achieved for a fund unit, there is quite a large measure of freedom. In contrast to many other forms of guaranteed savings, the customer can stop and start savings whenever they desire - without any hassle.”
The mutual fund will invest primarily in Swedish and international equity funds, as well as Swedish fixed income funds. The mutual fund will be managed in accordance with a dynamic management model, which means that when stock markets go up, the share in equity funds will increase; and when stock markets fall, the share in fixed income funds will increase. At a maximum, the mutual fund can have 90 percent of invested capital in equity funds.
In addition to the dynamic management model, the 80 percent guarantee level is ensured through a separate guarantee issued by an international bank.
Joachim Spetz notes, “There has been strong demand among our customers for this type of mutual fund. It is well adapted for the average mutual fund saver, but it is also an excellent choice for those who are saving for a pension or endowment insurance.”
The Handelsbanken Garantifond Plus starts on 14 June. During the subscription period, June 7-13, units will be priced at SEK 100.
For further information, please contact:
Joachim Spetz, chief executive Handelsbanken mutual funds,
telephone: +46 8 701 29 79
mobile phone: + 46 70 694 29 79
Eric Callans, head of marketing, Handelsbanken Asset Management,
telephone: +46 8 701 20 20
mobile phone: + 46 70 598 55 90
The full name for Garantifond Plus is Specialplaceringsfonden Handelsbanken Garanti Plus. The mutual fund is managed by Handelsbanken Fondbolag Ab. The company is a Finnish mutual fund company, which is under the supervision of the Finnish financial supervisory authority.
A fund’s historical return is no guarantee of future return. Investments in a fund can rise or fall in value and it is not certain that you will get back the capital you have invested. However, the invested capital and increase in value in Garantifond Plus is guaranteed at 80 percent of the highest price ever achieved for a mutual fund unit.
- Contact Information
- Joachim Spetz
- chief executive Handelsbanken mutual funds
- Svenska Handelsbanken
- Contact via E-mail
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