investing in a protected investment bond
where is my money invested?
Your money is placed in our With Profits 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 their clients' needs. Launched in 2002, Insight is a leading asset manager with assets under management across fixed income, liability driven investment, cash management, multi-asset, absolute return, and specialist equity strategies. They manage money for private investors, pension funds, sovereign wealth funds, insurance groups, local government, charities and other financial institutions.
Insight Investment's Diversified Target Return Fund
The Diversified Target Return Fund offers the opportunity to benefit from a global mix of investments in one single fund.
flexible balanced approach
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. 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 a class of asset that isn't directly affected by stock market performance such as property.
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. The value of your investment can fall as well as rise and you may get back less than you invested.
