engage press releases
November 2006
engage offers new insight for cautious investors
engage Mutual Assurance this week launches a new single-premium bond tailored to the needs of cautious investors who want the security of returns with fewer fluctuations in value compared with equities, together with a guarantee that they will get back what they have invested at certain anniversaries.
The Protected Investment Bond will be invested in the engage With-Profits sub-fund, which in turn is invested in the Insight Investment Diversified Target Return Fund, a multi-manager UCITS III fund which can reduce volatility by investing in a diversified range of regions and asset classes. The new product will be available to investors aged 18 to 80 and has a minimum investment requirement of £5,000. Existing customers with maturing savings plans can invest in the new product without incurring exit penalties via the Protected Loyalty Bond which is also being launched.
The Protected Investment Bond represents engage Mutual's first investment solution through a new alliance with Insight Investment, the asset manager of HBOS plc and adds to engage Mutual's existing suite of simple savings and protection products.
Karl Elliott, Marketing Director at engage Mutual Assurance, commented:
“As a modern mutual we are keen to develop products that meet the needs of the modern family. Our customer research tells us that many investors want the potential of good returns without exposing their money to severe risk and our relationship with Insight Investment gives us a great platform from which to help meet customer needs. This product will appeal to investors who are cautious about the volatility of stock market equities and who are looking for some capital protection.”
Martyn Gilbey, Third Party Distribution, Insight Investment, said:
“We are delighted to be joining forces with engage to bring the benefits of the Diversified Target Return Fund to its new and existing customers. This exciting alliance marks the start of what we are sure will be a highly successful collaboration and we are very much looking forward to working with engage to develop further innovative propositions as this relationship evolves.”
Features of the new product:
- The investment offers the extra security of returns with smaller fluctuations in value compared to equities, and a guarantee that investors will get back what they have invested, less withdrawals, if they encash on the fifth or tenth anniversaries (1).
- The 100% cash investment offered by the Protected Investment Bond is invested in the engage With-Profits sub-fund, and in turn invested in the Insight Investment Diversified Target Return Fund. This is a UCITS III multi-manager, multi-asset, multi-region absolute return fund that gains exposure, generally via investment in collective investment schemes to a wide range of asset classes including fixed income, cash, equities, property, commodities and certain types of absolute return products. Its aim is to deliver positive returns on an annual basis with the prospect of long-term capital growth commensurate with investment in equities.
- The product is open to any investor aged 18 to 80 with at least £5,000 to invest (maximum £500,000).
- Assuming annual growth of 6%, an investment of £7,000 could be worth £8,160 after five years, and £9,810 after ten years (2).
Depending upon the opening amount invested in the Protected Investment Bond, the allocation made in the bond is as follows:
- £5,000 - £9,999 101%
- £10,000 - £24,999 101.5%
- £25,000 - £49,999 102%
- 50,000+ 102.5%
Penalties for early encashment in the first five years are as follow:
- Year 1 7%
- Year 2 6%
- Year 3 5%
- Year 4 4%
- Year 5 2%
More for existing engage Mutual Customers
For existing engage Mutual Assurance customers, a similar Protected Loyalty Bond is also being launched which offers customers transferring from other engage products the same fund as the Protected Investment Bond without the exit penalties. Existing customers are also able to make a minimum investment of £2,000, with a 100% investment on an initial investment between £2,000 and £4,999.
FOOTNOTES:
(1) Money back guarantee also applies at subsequent 10 year anniversaries
(2) Growth is not guaranteed
- ENDS -
Partner Information
engage Mutual Assurance:
engage Mutual Assurance is one of the larger UK mutuals providing simple, value for money savings, protection and investment products.
engage currently helps over 275,000 customers of all ages to protect, preserve or enhance their welfare, with some of the most straightforward products on the market.
engage prides itself as a family-oriented, modern mutual, providing products that help enable households of all kinds to pro-actively plan their finances to meet their future needs. More information on engage Mutual Assurance is available at www.engagemutual.com.
engage Mutual Assurance can be contacted on 0800 169 4321† or by visiting www.engagemutual.com
Insight Investment:
Insight Investment Management (Global) Limited is the asset manager of HBOS plc. Registered in England and Wales. Registered office 33 Old Broad Street, London EC2N 1HZ. Registered no. 827982. Authorised and regulated by the Financial Services Authority.
Insight Investment manages funds for institutional and retail clients across a range of asset types including equities, bonds, derivatives and alternatives, with the aim of providing precise investment solutions for investment needs. Insight's assets under management as at 30 June 2006 totalled £96.6bn.
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
Media Contacts:
engage Mutual Assurance
Jo Winser/Derek Gilmour
FD Consumer Dynamics
020 7269 7236/7265
jo.winser@fd.com / derek.gilmore@fd.com
Insight Investments
Amanda Williams
Media Relations Manager
020 7321 1918
amanda.williams@insightinvestment.com
NOTES TO EDITORS
- If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engage Mutual Assurance - meeting the changing needs of today's modern families
- engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and its wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
- engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA, Debenhams stores and NAAFI Financial.
- The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls,
Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.- engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.
- engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.
- engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
- Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
- Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234
- The value of the bond can go down as well as up and investors may get back less than they originally invested
- Withdrawals in excess of 5% of the original investment in any of the first five policy years will incur exit charges
- If an investor withdraws more than the amount by which the plan grows then this will erode the capital, possibly to an amount below the original investment
- the value of any assets denominated in a foreign currency may be affected by exchange rate fluctuations which may cause the investment to go down or up
- Making a partial or total withdrawal could result in the loss of some or all of an investor's higher personal age allowance and may result in a tax liability
- Any changes in taxation rules could affect the amount an investor gets back or the amount of tax they pay Charges under this Bond are 1.75% per annum
engage Mutual Assurance is a trading name of Homeowners Friendly Society Limited and its wholly owned subsidiary engage Mutual Funds Limited. Both are authorised and regulated by the Financial Services Authority.