Article date: 24 November 2010
- Fund invests in shares, bonds and property with a money- back guarantee at five-year anniversary.
Aviva is launching a tranche of its guaranteed fund. The fund – which this year celebrates its 15th anniversary – is designed to provide capital growth and guarantees that the value at the fifth anniversary will be no lower than the original investment, less any withdrawals.
The £1.95 billion fund was launched in October 1995 and invests in a mix of UK and international equities, bonds, property and cash. It is available exclusively through the Aviva Portfolio investment bond and the asset mix is 17% equities, 5% property, 75% fixed interest and 3% cash.
Richard Kelsall, head of investment propositions at Aviva, said: “The Aviva Guaranteed Fund is very popular with cautious investors who face low returns from deposit accounts, are attracted by potentially higher returns from equities and property but who also want to protect their investment.
“The fund has given almost 300,000 investors peace of mind through two severe bear markets in the last 10 years, is simple to understand and comes with a cast-iron money back guarantee from Aviva.”
The guarantee applies on the fifth anniversary. If money is taken out before that date, the customer may not get back the amount invested. The charge for the guarantee for the first five years is an extra 0.5% a year on top of the Portfolio bond’s charges.
Investors also have the flexibility to switch in and out of the fund at anytime enabling them to “lock in” any gains. The fifth anniversary guarantee will start again from the date they switch back into the fund.
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Notes to editors:
Aviva is one of the world's largest insurance groups* with 53 million customers worldwide and 46,000 employees.
Aviva’s main activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion*.
In the UK, Aviva takes care of its 19.2 million customers by helping them look after their future, protecting what’s important – from their health to their homes, their cars to their business – and saving for the future.
Aviva has a 10.5%** share of the UK life and pensions market and insures one in six homes and one in 10 cars in the UK. It is also one of the oldest UK insurers, with a heritage stretching back more than 300 years.
RAC, which is owned by Aviva, provides breakdown and insurance services for individuals and businesses and has around seven million customers.
Aviva is carbon neutral worldwide, and is ranked in the top 10% of socially responsible companies globally by the Dow Jones Sustainability World Index. In the UK, Aviva invested £3.8 million into local communities in 2009. Read our corporate responsibility report a www.aviva.com/cr.
Aviva’s global Street to School programme is working in partnership with Railway Children in the UK to get children living on the streets back into education and 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 2009
** Source: ABI data released August 2010