Existing and new CU Unit Trusts customers can now transfer their assets between five sub-funds under the Commercial Union FIO umbrella fund without paying capital gains tax each time, which soaks up 19% of the profit from investments.
Existing and new CU Unit Trusts customers can now transfer their assets between five sub-funds under the Commercial Union FIO umbrella fund without paying capital gains tax each time, which soaks up 19% of the profit from investments. Besides the tax benefits and greater investment flexibility under this "umbrella", until the end of 2006 customers will be able to pay money into the CU Capital Protection Plus sub-fund without a handling charge.
There are five sub-funds available under the Commercial Union FIO umbrella fund – CU Deposit Plus, CU Bonds, CU Capital Protection Plus, CU Stable Growth and CU Polish Equities – which have hitherto enjoyed the status of open investment funds. "One of the advantages of our offer is the automatic extension of what is available under the “umbrella” to customers who have been using these five funds up to now. Without having to sort out any formalities, they can transfer their investments under the umbrella fund depending on the market situation and at the same time enjoy tax benefits," says Marek Przybylski, general manager of CU Unit Trusts.
There are double tax benefits that may accrue for umbrella fund customers:
- delay in paying capital gains tax until such time as money is actually paid from the unit trusts register, with simultaneous benefit from re-investment of the tax not paid on conversions
- profit and loss compensation – ie the potential to deduct any losses from the capital gains tax calculation base.
The umbrella fund has taken in all the existing funds that are rooted in Polish assets.
In February 2007, CU Unit Trusts is to launch a sixth sub-fund – CU Balanced. "Sub-funds coming under the “umbrella” will enable our customers to act on almost any investment strategy based on Polish assets. Poland is in fact the fastest growing large economy in the EU, which bodes well for the equities market, while the absence of any major inflation threat makes it possible to earn money on debt instrument markets too," Marek Przybylski points out.
In recent months and years, CU Unit Trusts investment funds have brought customers very good rates of return. The boom in the equities market that has been continuing for most of the time that CU Units Trusts has been functioning has enabled customers taking the greatest risk linked to placement in the CU Polish Equities fund to achieve particularly good returns.
Rates of return from sub-funds under the Commercial Union FIO umbrella fund (in %) calculated as at 31 October 2006.
| Fund | 3 months | 12 months | 2 years | 3 years | 4 years |
| CU FIO (umbrella fund) | |||||
| CU Deposit Plus | 0.84 | 3.27 | 8.70 | 13.83 | 19.53 |
| CU Bonds | 1.49 | 3.91 | 11.43 | 17.72 | 19.76 |
| CU Capital Protection Plus | 4.54 | 19.00 | 30.43 | - | - |
| CU Stable Investment | 2.38 | 16.22 | 29.40 | 41.88 | 81.72 |
| CU Polish Equities | 5.99 | 48.02 | 73.24 | 118.96 | 270.30 |
Under the terms of a promotion lasting from 2 November until 31 December of this year, all payments into the CU Capital Protection Plus sub-fund made by either existing or new customers will be exempt from any handling charge.
Commercial Union Poland Unit Trusts Company is part of the CU Poland group. The total asset value of the funds offered by CU Unit Trusts exceeds 1.5 billion zlotys. In the first half of 2006, CU Unit Trusts achieved 20.9 million zlotys in revenues, generating 5.1 million zlotys net profit.
The distribution network for CU Unit Trusts funds is as follows:
- CU insurance agents: approximately 2,400 individuals
- BGŻ Brokers (brokerage house) customer service points – 67 outlets
- BPH Brokerage House customer service points – 34 outlets
- BPH Bank customer service points – 159 outlets
- Bank Pekao SA Central Brokers customer service points – 97 outlets
- PKO BP SA Bank Brokers customer service points – 42 outlets
- Secus Asset Management SA – www.secus.pl
- OFI Sp z o o – transfer agent (internet application) – www.efund.pl
- Investment Fund Market Sp z o o – nine specialists – www.ifmpl.com
- Elite Finance & Consulting Sp z oo – www.elitefc.pl
- CU website: www.cu.pl
- CU call centre: 0-801 888 444.
-ends-
Information:
Bohdan Bialorucki
Telephone: +48 22 557 43 41
E-mail: bohdan_bialorucki@cu.com.pl
For further information, see www.cu.com.pl
Notes to editors:
Commercial Union Poland Group is part of the international Aviva group – the world’s fifth largest insurance group, and the largest in the United Kingdom by revenues. Aviva Group operates in 25 countries. It occupies a strong position in the European Union, including United Kingdom, Ireland, France, the Netherlands, Spain, Italy and Poland. It also has major operations in the USA, Canada, Australia and Asia. Worldwide, Aviva group services about 35 million customers and manages assets valued at over Ł330 billion. For additional information, see the website www.aviva.com