The newest structured product from Commercial Union - CU Guarantee of Global Raw Materials (Gwarancja Swiatowe Surowce) - here is the answer to the rising prices of raw materials and the increased interest of customers in a new type of guarantee.
The newest structured product from Commercial Union - CU Guarantee of Global Raw Materials (Gwarancja Swiatowe Surowce) - here is the answer to the rising prices of raw materials and the increased interest of customers in a new type of guarantee.
CU has also enlarged its offerings of investment and capital funds.
Make money on the increasing prices of raw materials
From June 2 to 27 clients may invest in a new four-year structured product prepared by Commercial Union - CU Guarantee of Global Raw Materials. It both guarantees recovery of paid-in capital and allows getting profits from investments in the BNP Paribas COMAC 12 ER index, which is connected with the markets for raw materials.
Thanks to active management through the index and the broad diversification of its composition among various types of raw materials (industrial and rare metals, energy resources, and agricultural goods), this investment gives the opportunity to achieve above-average profits, especially in a situation of high and rising prices for many raw materials.
If the rate of return of this index in the investment period is positive, after four years the customer will receive his invested capital increased by the rate of return of the index multiplied by the coefficient of participation. This coefficient will be in the range of 90-100%; its final value will be set after the sales period. If it turns out that the rate of return is zero or negative, the client will receive 100% of his paid-in capital.
The product is offered in the form of invested life insurance, based on which the payment after the conclusion of the contract is not subject to capital gains tax (Belka tax). The minimum investment is 10,000 zlotys for four years. There are no handling or administration fees.
"We have prepared the following product, which also responds to two basic needs of our customers - preservation of paid-in capital in the face of great uncertainly on the stock markets, and the search for new sources of profits. The former is based on alternative sources of energy; the latter, on traditional raw materials," says Marek Przybylski, chairman of CU TFI and CU Investment Management.
This is the fifth structured product in the CU Guarantee series, which has been offered by CU since autumn 2007. It is being sold chiefly by insurance agents of CU and the staff of four CU Good Investment Centres in Warsaw. The product is also available from Xelion Financial Advisers.
New investment and capital funds
Recently the CU group has broadened its investment offerings with several new investment and capital funds.
"When stocks are cheap, some investors begin to get interested again in investments in this category of assets," emphasises Marek Przybylski. Bearing this in mind, CU TFI has introduced four new stock subfunds in its umbrella fund. These are subfunds with a clear profile: CU Small Cap, CU New Companies, CU Modern Technology, and CU Emerging Europe Stocks.
In April one fund received a basically changed profile, offered until now as CU FIO Currency. Now this fund is called CU FIO Active Allocation, and is directed at investors who transfer to the administrators all decisions about the allocation of funds in stocks and bonds, depending on the market cycle. This fund has no permanent, defined limits of participation in particular classes of assets.
Instead, the offering of insurance capital funds of CU Life has been expanded by three actively managed funds: stable, balanced, and dynamic. The assets of these funds are invested in the acquisition, in appropriate proportions, of units of participation in the CU TFI investment funds. The new funds are designed for customers using the investment insurance Bonus VIP with a one-time investment of a minimum of 10,000 zlotys.
Bonus VIP - special offer
From June 16 to August 14 CU is offering to its customers a special offer, which will allow the increase of capital even in falling market conditions. The customer who concludes a contract for Bonus VIP insurance under the special offer and who pays at least 20,000 zlotys (one-time payment, no allocation fees), after half a year will receive a guarantee of a rate of return at an amount based on the chosen investment strategy. Four strategies are available, depending on the division of the amount paid in various proportions between two CU insurance capital funds: the Money Market Fund and The Dynamic Active Selection Fund. The maximum guaranteed profit is 10% a year when choosing the active strategy. The guaranteed rate of return will be affected by the amounts of investment in the Money Market Fund.
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Information:
Bohdan Białorucki
Telephone: (22) 557 43 41
E-mail: public_relations@cu.com.pl
Grzegorz Mathea
Telephone: (22) 557 43 70
E-mail: grzegorz_mathea@cu.com.pl
Additional information can be found at www.cu.pl/
Notes to editors:
The Commercial Union Poland Group is part of the international Aviva group, the world's fifth and Great Britain's number one insurance organisation in terms of revenue. The Aviva group operates in 30 countries. It occupies a strong position in Great Britain, Ireland, France, Holland, Spain, Italy, Poland, the USA, Canada and Australia. It services over 40 million customers around the world, has an annual revenue of around £50 billion and manages assets to the value of over £364 billion. For additional information see: www.aviva.com/