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 part of the HBOS group and is one of the largest investment managers in the UK, managing assets of £92.9bn (as at 30th September 2006). They manage money for private investors, pension funds, insurance groups and other institutions and provide investment expertise for some of the UK's best known financial brands such as the Halifax.
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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engage Mutual Assurance is a trading
name of Homeowners Friendly Society Limited ("HFSL") and its wholly owned subsidiary
companies engage Mutual Funds Limited ("eMFL"), engage
Mutual Services Limited ("eMSL"), engage Mutual Insurance Limited
("eMIL") and engage Mutual Administration Limited ("eMAL"). HFSL
and eMFL are authorised and regulated by the Financial Services Authority. eMIL
is authorised to conduct general insurance business by the Financial Services Commission
Gibraltar (FSCG) and regulated by the Financial Services Authority for the conduct
of UK business.