Protected Investment Bond
investment strategy and the Diversified Target Return Fund
Investing in a Protected Investment Bond
where is my money invested?
Your money is placed in our With Profits Sub Fund,
which in turn invests in Insight Investment's Diversified
Target Return (DTR) Fund.
about Insight Investment
Insight Investment is a specialist asset manager at the forefront of designing investment
solutions to meet our clients' needs. Launched in 2002, Insight is a leading asset
manager, with £83.1 billion in assets under management* across fixed income,
liability driven investment, cash management, multi-asset, absolute return, and
specialist equity strategies. We manage money for private investors, pension funds,
sovereign wealth funds, insurance groups, local government, charities and other
financial institutions.
*Source: Insight Investment, 30th September 2009
Insight Investment's Diversified Target Return Fund
- acts like an investment portfolio
- flexibility that traditional funds can't match
- spread of asset classes
acts like an investment portfolio
The Diversified Target Return Fund offers the
opportunity to benefit from a global mix of investments in one single fund.
flexibility that traditional funds can't match
The Diversified Target Return Fund aims to balance risk and return through the ability
to constantly adjust the global mix of investments available - including property,
commodities, equities, bonds and cash - dependent on market conditions. This means
that if, for example, equities are underperforming, the equity portion may be switched
into another asset class - for example property.
Even though the Protected Investment Bond aims to produce a return that is as high
as long-term average stockmarket growth, it must be understood this is not always
possible. As with any stock market based investment, the value of your investment
can fall as well as rise and you may get back less than you invested.
spread of asset classes
The Diversified Target Return Fund is not restricted
to one type of investment. It can invest in
- traditional investments - Bonds and Equities
- traditional alternative investments - Cash, Commodities and Property
- modern alternative investments - Absolute Return Funds
The fund has a great deal of investment flexibility, but there are strict limits as to the maximum it can invest in any one asset class. These are as follows:
| Asset Class | Maximum % of the fund that can be made up of the asset class |
| Bonds | 70% |
| Equities | 60% |
| Cash | 70% |
| Commodities and Currency | 30% |
| Property Funds | 30% |
| Absolute Return Funds | 60% |
This means that if for example, equities are underperforming, a proportion of funds may be switched into property, a class of asset that isn't directly affected by stock market performance.
Because of the Diversified Target Return Fund's investment management strategy,
the fund can reduce exposure to falling asset values across a number of asset classes,
although clearly it cannot remove the risk entirely. However, even though the Protected
Investment Bond aims to produce a return that is as high as long-term average stock
market growth, it must be understood that this is not always possible. As with any
stock market based investment, the value of your investment can fall as well as
rise and you may get back less than you invested.
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