NU Online News Service, April 18, 3:26 p.m. – IDEX Mutual Funds, Denver, a unit of AEGON N.V., The Hague, Netherlands, is starting a “principal-protected” mutual fund, the IDEX Protected Principal Stock Fund.
The new IDEX fund will guarantee the investor’s principal, after loads and expenses are deducted, if the investor holds assets and dividends in the fund for at least five years.
Each year, the investor can lock in any gains by agreeing to a new five-year holding period.
Although AEGON/Transamerica Fund Advisers Inc. will back the principal guarantees for investors who keep their funds for the minimum required holding period, investors who cash in early could lose money if the mutual fund’s performance is poor, IDEX says.
J. Patrick Rogers of Gateway Investment Advisers L.P., Cincinnati, will manage the fund’s investments. He intends to invest mainly in S&P 500 stocks.
Transamerica Capital Inc., Denver, will take charge of distribution.