Meteor launches protected equity fund

Meteor Asset Management has launched a new capital protected Ucits III fund. The fund provides exposure to FTSE 100 index volatility, with downside protection of 10%.

The Protected Equity Fund, which is managed by Commerzbank, protects investors’ capital as long as the FTSE 100 does not fall by more than 10% during a monthly trading cycle. Should it fall by more than this level, then loss of principal will be 1:1 with the index.

Investors will be paid a varying premium for the risk taken, depending on market volatility that month. Back testing carried out over a twenty year period showed that the fund would have achieved a compound return of around 13% per