8AM Global launches UK’s first capital-protected model portfolio for advisers

MPS specialist 8AM Global, in partnership with structured product specialist IDAD, has launched AQ Protected (AQP), a capital-protected investment solution combining the growth potential of an actively managed model portfolio with 100% capital protection.

The product is designed for any investor who is seeking equity-style returns coupled with cash-like risk and is particularly attractive for a number of client segments saving to meet future liabilities, including those five to ten years from retirement seeking to protect accumulated gains, retirees managing sequencing risk in drawdown, and trustees or fiduciaries with capital preservation duties.

For advised clients in drawdown, 8AM Global suggests using AQ Protected to ring-fence a five-year bucket for future withdrawals, creating a ladder of protected maturities that can be rolled forward annually.

The five-year product offers investors full capital protection at maturity while providing exposure to potential returns of up to 40%, with the capital secured by Goldman Sachs.

AQP is linked to 8AM Global’s AQ Global 60 portfolio which maintains 60% equity exposure through a diversified mix of global equity and bond funds. The product incorporates a daily volatility control mechanism managed by Goldman Sachs that adjusts portfolio exposure between 0% and 150% to target 10% volatility, aiming to smooth returns during market turbulence.

Paul Hogg, Head of Distribution at 8AM Global, said: “Traditional model portfolio solutions can feel very exposed for pre-retirees or those in drawdown, particularly after recent strong market gains. AQ Protected gives advisers a tool to keep clients invested for growth while removing the fear of capital loss that can derail financial plans.”

Clive Moore, Managing Director at IDAD, added: “Investors have had a great couple of years, in particular recovering losses from 2022, but there’s a lot of nervousness out there at the moment and advisers tell us they want solutions that can ‘bank’ the gains at the same time as keeping invested if markets continue to run hot – AQP does exactly that.”

The investment carries a 0% product OCF, with all costs built into the structure upfront. The underlying AQ Global 60 portfolio has an OCF of 0.29% and AMC of 0.15%.

Investors can access daily liquidity, though selling before the five-year maturity may result in receiving less than the amount invested.