Aviva is launching two guaranteed funds. The Guaranteed Selection funds will appeal to customers who want better returns than produced by a typical deposit account and are prepared to invest for five years or more.
Aviva is launching two guaranteed funds. The Guaranteed Selection funds will appeal to customers who want better returns than 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 anniversary.
The Guaranteed 80 fund is aimed at customers who are happy to take some risk with their money. Of the funds, it offers the highest level of potential growth while guaranteeing to return at least 80% of an original investment at the fifth anniversary.
The Guaranteed 90 fund will appeal to more cautious investors and 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 – previously know as the Aviva Guaranteed Fund – which is designed to produce steady growth and return at least the initial investment on the fifth anniversary.
Investors can also switch between the funds at any time allowing them to lock-in any growth their investment has made. The five-year guarantee is then reset at the date of the switch.
The funds will be available from 27 June through Aviva’s Portfolio investment bond.
Richard Kelsall, head of propositions (bonds & savings) at Aviva, said: “Aviva’s new Guaranteed Selection provides investors with real prospects for growth along with built-in guarantees on the fifth anniversary that protect some or all of their original investment. Many investors are understandably unsure about where to put their money in the uncertain economic climate and these funds will appeal to investors who want higher potential growth than they can get from a deposit account and are prepared to accept a higher level of risk.
“An attractive feature of the funds is that investors can switch between them at any time. This opens up an interesting possibility for clients who want to lock-in growth and reset their guarantee on a higher amount.”
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 lump-sum 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.
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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.
About Aviva
Aviva is the world’s sixth largest* insurance group. We provide more than 53 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 19 million customers and one in three households has a relationship with us. Our combination of life, health and general insurance, together with motoring services from RAC, 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 £4.3m 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 2009.
** at 31 December 2010.