Sarasin Investment Management has issued a capital protected instrument to offer investors exposure to its flagship fund, 'GlobalSar Sterling Balanced Fund'. The product, structured by Rabo Securities, aims to achieve 100% exposure to the underlying coupled with capital protection via constant proportion portfolio insurance.
Rabo Securities directly invests in the Sarasin fund and will move assets as required between the fund and cash. Sarasin chose the CPPI structure because it offered 100% exposure to the underlying fund, noted Tom Service, ceo of Sarasin in London. Rabobank provides the capital protection. Service said it chose Rabobank because of its AAA/Aaa rating.
