Hibernian Life & Pensions, Ireland’s largest provider of saving and investment products through the intermediary market, today launched the Hibernian Guaranteed Fund.
Hibernian Life & Pensions, Ireland’s largest provider of saving and investment products through the intermediary market, today launched the Hibernian Guaranteed Fund.
The fund was developed in response to consumers' demand for a product offering opportunity for growth with capital security. A global consumer research project undertaken by the UK-based Henley Centre on behalf of Hibernian Life & Pensions and its parent company Aviva plc recently found that "36% of Irish consumers are looking for more financial security than they were five years ago."
Ian Veitch, marketing & product development director, Hibernian Life & Pensions, said: "As a leading provider of investment products through the intermediary market, it is incumbent on us to respond to consumers’ concerns. Recently, investment products such as trackers have been criticised for lack of transparency, high cost structures and poor performance. We chose to address these criticisms in developing our new Guaranteed Fund.
"The Hibernian Guaranteed Fund offers a five-year capital guarantee if money remains with us for the period. If after five years the value of the fund invested by the customer is below the original amount invested, Hibernian will add additional funds to ensure that the current value is equivalent to no less than the premium initially paid less any cash withdrawals. As well as the valuable guarantee, the fund offers the opportunity for strong growth through exposure to an actively managed portfolio of real assets managed by Hibernian Investment Managers. We expect there to be strong demand for this fund," he continued.
The fund will be available on Hibernian’s leading Spectrum Bond. Key features of the fund include:
- Diversification. The fund invests in a globally diversified portfolio so as to reduce the stock and asset-specific risk that the investor is exposed to. The initial asset split will be 1/3 in high yielding equities, 1/3 in eurozone bond and 1/3 in Irish commercial property. HIM will manage this investment allocation to ensure it remains appropriate.
- Transparency. The fund management charge is 1.5% pa for a lump sum investment. This includes the cost of the guarantee and there are no additional or performance-based costs or penalties. At all times customers can find out exactly where the fund is investing and what the current value is.
- Flexibility. Customers can encash their bond or switch to any of our other funds at any time. In these circumstances they will get the current value of the fund. Encashments within the first five years are subject to an early encashment charge of 5% in years one, two and three, 3% in year four and 1% in year five.
- Security. Customers' capital is guaranteed on the fifth anniversary of the fund.
- Accessibility. The minimum investment is €6,000.
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Media contact:
Marie-Thérčse Culligan, group media relations, tel: + 353 1 617 8164, mob: 087 2367008
Notes to editors:
- Hibernian is part of Aviva plc, the world's seventh-largest insurance group (based on gross worldwide premiums) and one of the leading providers of life and pensions products to Europe.
- Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and third for life and pensions.
- "Research undertaken by The Henley Centre" in January-March 2004 on behalf of Aviva. The Henley Centre is a strategic marketing consultancy.
- Hibernian news releases are also available on www.hibernian.ie