Article date: 28 November 2011
Aviva’s recently introduced Guaranteed 90 Fund and Guaranteed 80 Fund are now
available to existing customers of Aviva’s Portfolio Investment Bond.
Open to new customers since June this year, the new guaranteed funds appeal to
customers who want the potential for better returns than those produced by a typical
deposit account and are prepared to invest for five years or more. The funds invest in a
mix of shares, bonds, property and cash and offer strong guarantees at the fifth
Aviva has also introduced new functionality to enable customers to hold multiple
guaranteed funds on a single policy, increasing flexibility and ease of administration.
The Guaranteed 80 Fund is aimed at customers who are happy to take some risk with
their money. Of the guaranteed funds, it offers the highest level of potential growth while
guaranteeing to return at least 80% of the original investment at the fifth anniversary.
The Guaranteed 90 Fund will appeal to investors who want to take a slightly more
cautious approach, as it offers a 90% guarantee on the original investment at the fifth
anniversary no matter what happens to the stock market during the five-year period.
They complement Aviva’s Guaranteed 100 Fund, which is already available to new and
existing customers, and is designed to produce steady growth and return at least the
initial investment on the fifth anniversary.
Investors can switch between the funds at any time, allowing them to lock-in any growth
their investment has made. Alternatively, customers looking for higher returns can switch
into the Guaranteed 90 or 80 Fund, thereby reducing their guarantee level but improving
their growth potential. The five-year guarantee is then reset at the date of the switch.
Richard Kelsall, head of propositions (bonds & savings) at Aviva, said: “Aviva’s Guaranteed 90 & 80 Funds have proven popular with customers since we
introduced them in the summer. They provide investors with real prospects for growth
along with built-in guarantees on the fifth anniversary that protect a percentage of their
original investment. Many investors are understandably unsure about where to put their
money when faced with continued market uncertainty, record low interest rates and rising
inflation. These funds will appeal to investors who want a higher potential growth than
they can get from a deposit account and are prepared to accept a defined level of risk.”
Aviva’s guaranteed funds are actively managed and invest in UK and international
equities, bonds, property and cash. They are available through Portfolio, Aviva’s lumpsum
investment bond, and the minimum investment is £5,000. The guarantees apply on
the fifth anniversary. If money is taken out before that date, the customer may not get
back the amount invested. After five years the investor must decide where to reinvest
their capital. The charge for the guarantee for the first five years is an extra 0.5% a year
on top of Portfolio’s charges.
Notes to editors:
About Portfolio investment bond:
Portfolio offers a flexible way to invest. Its minimum investment is £5,000 and investors can choose to put their money in a selection of over 200 funds across all the major asset classes cash, bond, property, and equities, which are run by Aviva Investors and other leading fund managers.
Aviva is the world’s sixth largest* insurance group. We provide 44.5 million customers with
insurance, savings and investment products with total worldwide sales in 2010 of £47.1 billion**.
We are the UK’s largest insurer with over 14 million customers. Our combination of life, health and general insurance is unique in its scale and breadth in the UK market. Customers can choose to buy our products through intermediaries, our corporate partners or from Aviva direct and we have become the partner of choice for many of the UK’s biggest organisations.
We are ranked as one of the UK’s top 10 most valuable brands and Aviva plc are in the top 10% of socially responsible companies globally in the Dow Jones Sustainability World Index. In 2010 we invested £4.3 million into our communities in the UK, which included 1,500 Aviva volunteers giving 24,000 hours for good causes. In addition, our employees gave £600,000 through fundraising and donating. Read our corporate responsibility report at www.aviva.com/2010cr.
Aviva is working in partnership with Railway Children through the Aviva Street to School
programme to get children living or working on UK streets back into everyday life. Find out more at www.aviva.co.uk/street-to-school.
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* based on gross worldwide premiums at 31 December 2010.
** at 31 December 2010.