Funds Focus

In our March 2010 issue we discussed the increasing prevalence of volatility overlays in structured products. Investor participation in the growth/loss of the underlying investment decreases as volatility goes up and increases as volatility goes down. This results in a lower product costs as the issuer does not have to bear the cost of hedging when volatility is high, and therefore costly.
Comparing volatility overlays
It should come as no surprise that not all volatility overlays are equal

Strategies for income

Axa’s latest development in capital protected products is the development of their Retirement Income Guarantee.
Providing investors with a rising lifetime income of 5%pa, this protected income product, allows investors to particpate in share market returns and lock in growth*.

Axa have gained a lot of attention recently as Australia’s fastest growing investment platform with their capital guaranteed investment options. However, their success in the US (where Axa