MetLife has responded to demand from clients and advisers for increased protection for investments by offering an extra 1% allocation on its innovative Protected Growth Bond.
Investors applying before June 30th can take advantage of the extra allocation, whilst benefitting from a level of investment growth locked in daily, as well as a choice of protection levels, underlining MetLife’s commitment to increasing certainty for clients and advisers.
MetLife believes the bond has demonstrated its value in the current markets with the funds averaging growth in the past six months of around 4% as the markets have picked up while protection levels have increased since launch in February 2011.
By contrast the FTSE-100 has fallen around 6.5% from the 6,083 it hit on February 18th 2011 when the bond launched to around 5,700 now*.
Investors in the onshore bond could at launch choose the level of protection they wanted for their investment from 90%, 80% and 70% – currently protection levels are 93.6%, 85.8% and 75.9%** respectively.
Dominic Grinstead, Managing Director of MetLife UK said: “The Protected Growth Bond has done exactly what it was designed to do by offering the potential for increased growth while ensuring savers’ money benefits from strong levels of protection.
“The extra 1% allocation underlines our commitment to innovation which we believe is the key to success for providers and MetLife is committed to continuing development.”
Stock market exposure depends on the level of protection with a maximum of 90% and a minimum of 40% and funds are switched between a stock market basket and a cash basket on a daily basis depending on market conditions. Each time a fund price high is achieved a new protected unit price is locked in that cannot drop.
Currently the 90% fund is offering around 25% equity content while the 80% fund provides around 50% and the 70% fund around 70.5%.***
The bond is available in onshore and offshore versions and minimum investments are £10,000. MetLife works with Barclays to calculate when to move funds. Information on unit prices and protected unit prices is available on www.metlife.co.uk