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Capital Protected Target Date Funds

 

Exposure to risk that is optimised in line with the investment timeframe

As their name suggests, the funds in this range are managed according to a predetermined investment horizon or “maturity”, which is the date in the future when an investor wants to recover the capital he or she has invested in the fund.

The capital protected target date funds that THEAM offers cover maturities that can range from four to 30 years at the time of the product’s inception.

The principle of these funds is that they are managed according to a risk budget that changes over time. When the maturity date is distant, the portion allocated to the fund’s risk budget is higher in order to benefit from the performance of the financial markets.

Conversely, as the maturity date draws closer, the need to secure the gains accumulated throughout the life of the fund becomes greater. This means that the risk budget, which corresponds to the portion of the fund invested in higher-risk assets, will be reduced so as not to expose the fund to the risk of a fall in the financial markets before it reaches maturity.

THEAM stands out in terms of its innovation in this product category, thanks to the Easy Future strategies, where the innovative protection mechanism enables the level of protection for savings to be optimised depending on the level of interest rates.

This approach enables the self-adjustment of products with very distant maturities throughout their life.

Why invest in THEAM’s capital protected target date funds?

An investor’s profile changes throughout their life, as do their savings goals. The future investment period for their savings will not be the same, depending on whether their savings are intended to be used as a contribution to a future property purchase, to finance their children’s studies, or to top up their pension.

THEAM’s target date funds provide an opportunity to benefit from protection that is genuinely suited to the savings investment period, which enables a combination of security and potential gains over the investment horizon.

Furthermore, they offer savers simple access to the major financial asset classes that will encourage growth in their savings, while limiting their risk by enabling them to benefit from protection that is adjustable over time. THEAM’s capital protected target date funds remain open to new subscriptions.

They are particularly well suited to programmed savings as they enable private individuals to save at their own rate throughout their life.

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Protected Management: New Horizons

Agefi Protected Management pack in partnership - December 2014

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Investment Partners.