Old Mutual International, the offshore subsidiary of the London- and Johannesburg-listed parent, is launching its OMGB Protected Return Fund.

The fund, designed in collaboration with BNP Paribas, aims to provide 100 per cent capital protection and, on maturity, deliver the greater of either a 5 per cent yearly compounded return on the sum invested or the equivalent of 50 per cent of stockmarket growth during the five-year lifespan of the fund. 

Investors who invest in US dollars will see the returns linked to the performance of the S&P 500, while sterling investors will participate in any growth of the FTSE 100 index.

The fund is available only to clients who are investing in a new Life Account 2 contract and who wish to place 100 per cent of their contribution into the fund.

The Life Account 2 product from Old Mutual Guernsey is a single contribution unit-linked whole of life assurance contract.