protected investment bond

acts like an investment portfolio

The investment bond invests in the Engage Mutual With Profits Fund, which in turn invests in the Insight Investment Diversified Target Return Fund (DTR Fund). The DTR Fund offers the opportunity to benefit from a global mix of investments in one single fund.

flexibility that traditional funds can't match

The DTR 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, a proportion of funds may be switched into a class of asset that isn't directly affected by stock market performance such as property.

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 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. Risk cannot entirely be removed and the potential return may not be as great as for traditional stock market based funds that do not offer the same level of risk reduction. Always remember that the value of any of the assets held in the fund, in currency other than sterling, may go down as well as up as a result of exchange rate fluctuations.

More details on the DTR Fund allocation split can be found on the investment fund page.

investment bond with an element of capital protection

On the 5th, 10th and every subsequent 10th anniversary of your investment bond, you're guaranteed to get back at least your original investment (less any withdrawals) if you cash in at that time. If you cash in at any other time you may get back less than you have invested.

invest between £5,000 and £500,000

You can invest between £5,000 and £100,000 per protected investment bond. You can hold more than one but overall your protected investment bonds must not total more than £500,000.

ability to make regular withdrawals

• Regular withdrawals may be made monthly, quarterly, half yearly or annually subject to a minimum withdrawl of £50 provided a withdrawal will not take the value of the investment bond below £1,000.
  

• As long as the total withdrawals in any one policy year do not exceed 5%  of the initial investment there will be no withdrawal penalty. If you decide to make a withdrawal or regular withdrawals that exceed 5% of the initial investment amount or to close your policy within the first 5 years there will be a withdrawal penalty. Please see "what are the charges" in our FAQs section.
  

• If you choose to make regular withdrawals from the outset then they will erode your capital before it has had the chance to achieve any growth.
  

• Making any withdrawals will reduce the value of your investment. If the rate of withdrawal is higher than the rate of growth on your plan this will reduce the value possibly to below the original investment.
  

• Making a partial or total withdrawal could result in the loss of some or all of your higher personal age allowance and may result in a tax liability.
  

  
  

higher allocation rates the more you invest on day 1

The higher the initial investment into a protected investment bond the higher the allocation rate. The allocation rates are as follows:

If you already hold a protected investment bond and wish to make further investments, the investment minimum is lowered to £2,000 and the following allocation rates will apply: