Product of The Week

With interest rates so incredibly low and markets starting to show the first signs of settling down a cautious confidence has started returning to investor’s thoughts.

Over the past months we have received numerous requests from investors seeking an investment offering high returns with low risk and a short investment term. So far it has proven very difficult to find such a product but through perseverance I am pleased to say we believe we have tracked down a very credible solution worthy of consideration.

What is the AVIVA Defined Returns Fund?

It offers growth dependent on the performance of the FTSE 100TM Index* and is a way of gaining potential growth without investing directly in the stockmarket.

The Aviva Investors Defined Returns Fund 1 has a maximum 3 year term with the potential to mature early on its first or second anniversaries, subject to certain conditions.

The return is dependent on the FTSE 100TM Index being equal to or higher than it was on 7 August 2009 at either one of the anniversaries, or at maturity.

• If at the first anniversary the FTSE 100TM Index is higher than it was on 7 August 2009, the Fund aims to return your initial investment plus 8% and the Fund will mature early.
  


• If the Fund hasn’t matured at the second anniversary and the FTSE 100TM Index is higher than it was on 7 August 2009, the Fund aims to return your initial investment plus 16% and the Fund will mature early.
  


• If the Fund doesn’t mature early, at the end of the 3 year term, the Fund aims to return your original investment plus 24% if the FTSE 100TM Index is higher than it was on 7 August 2009. If the FTSE 100TM Index falls by up to 50% of its level at 7 August 2009, the Fund aims to return your initial investment only. If the FTSE 100TM Index falls by more than 50% of its level at 7 August 2009, you will lose more than 50% of your initial investment.
  
  

I believe this investment offers the potential for a greater return than cash whilst providing significant downside protection from further market volatility.

Timing of this style of investment is key. It is important to invest at a time when market prices are low, as they are at present. By doing so you limit the potential for any further downside and at the same time enhance the opportunity for upside returns.

This product may be suitable for you if you wish to:

1. Use your ISA allowance for the new tax year
2. Improve the potential for return on your existing cash ISA’s
3. Build some protection into your existing stocks and shares ISA
4. Improve the potential for return on your cash deposits.

5. Suitable for Trustee and Sipp monies.

I would ask you to give this investment your consideration and let me know if you would like any further information or to arrange a meeting to discuss this opportunity in more detail. I can be best reached on 01356 625285 or ifa@ferguson-oliver.co.uk