Is your money working hard enough? If it is sitting in a deposit account earning historically low interest rates then it probably is not. Maybe it's time you reviewed your investment position. Investing your money sensibly can provide you with security for the future.
Acorn Life's Investment Bond
Acorn Life's Investment Bond gives you an excellent opportunity for real growth potential. Our Investment Bond is designed for the investment of a substantial lump sum of money for a period of at least five years.
Acorn Life's Investment Bond is a unit-linked investment bond. You can choose to invest in a number of unit linked funds depending on your risk profile.
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Your Questions Answered
Here you will find the information you need so that you can make your investment decision with confidence.
Unit linked funds are investment vehicles that are available from life assurance companies and investment companies. Returns from unit linked funds will vary depending on the type of fund you choose, where the fund is investing and what type of things the fund invests in.
Acorn Life's Investment Bond offers four different types of unit linked funds:
- The Deposit Fund
- The Cautiously Managed Fund
- The Managed Fund
- The Managed Growth Fund
The Deposit Fund's objective is to achieve steady, secure growth with the emphasis on security through investing in deposits. This fund is suitable as a temporary home for money when markets are volatile.
The Cautiously Managed Fund is suitable for investors who are prepared to accept a low level of risk for the prospect of a more attractive return than that offered by deposit type accounts. It invests mainly in bonds denominated in euro, issued by governments, agencies, supranationals and corporates. There is also a smaller level of investment in other asset types e.g. equities and cash.
The Managed Fund is for the investor who is looking for a spread of investment and long term growth. Through a carefully managed selection of equities and securities the fund aims to outperform returns from banks and building societies.
The Managed Growth Fund is for the more adventurous investor. It aims for a higher return than the Managed Fund through investing more heavily in equities.
Acorn Life's Managed Fund, Managed Growth Fund and Cautiously Managed Fund are managed by HSBC Global Asset Management (UK), the global fund management division of HSBC Holdings plc, one of the largest financial organisations in the world. The Deposit Fund is managed by Acorn Life's in-house investment team.
You should have some money on deposit in a bank for emergencies; however you are unlikely to earn significant interest on a regular deposit account. For longer term savings, you may want to consider investing in assets that offer real growth potential such as stocks and shares. Investing your money sensibly for the long term can enable you to realise some of your dreams.
Acorn Life invests the initial premium and any subsequent premiums on your behalf in the fund(s) of your choice. The funds are typically invested in equities, unit trusts and Government bonds and are divided into a number of units of equal value, which are allocated to each policy. Each month some of the units are deducted from the fund to cover the cost of the company continuing to look after your policy. The remaining fund is there to provide cash benefits if you choose to surrender your policy in full or in part.
You can make lump sum extra payments into your policy if you wish. This will enhance your fund and provide a higher ultimate return in due course.
In the medium to long term, stocks and shares are generally expected to give better returns than property or fixed interest securities, which in turn are expected to perform better than cash. This better return comes with the associated risk of volatility: cash will fluctuate least, shares will fluctuate most.
1st January 1991 – 1st July 2019. Source: MoneyMate & Acorn Life. Offer to Bid Basis.
Source: Acorn Life DAC and Longboat Analytics (part of the MoneyMate Group, www.fund-focus.com accessed on 16/08/2019).
Basis: Gross returns on Offer to Bid basis after Fund Management Fee of 0.5% p.a. and before policy exit tax of 41% deducted.
Unit prices can fall as well as rise. Returns will depend on actual growth levels achieved. The recommended minimum investment period for the Investment Bond is 5 years.
Note 1: Acorn Life returns quoted are net of the bid offer spread and the annual management charges
Note 2: All returns quoted are before tax has been deducted.
- Unlimited Growth Potential.
- Your fund will be expertly managed by HSBC Global Asset Management (UK), the global fund management division of HSBC Holdings plc, one of the largest financial organisations in the world.
- Spread of Investments. Acorn Life Managed and Managed Growth Funds give a wide spread across world markets.
- You can make additional contributions to your fund.
- You can transfer between funds.
- You can take part of your fund at any time.
- Transparency and Flexibility Charges are transparent, there is no time limit for your investment and gains can be taken out.
- Regular Valuations. Unlike other forms of investments, values on your investment are immediately available on request.
- You have flexibility in deciding when you want to encash your investment. We recommend that you take a minimum 5 year view of your investment. However, your investment is open-ended and can be encashed at any time.
- An interesting alternative. Low interest rates means that even larger amounts earn little interest. This plan offers you an alternative for your money over the next 5 to 10 years.
For a summary of our Fees and Charges please click here.
|Warning: Past performance is not a reliable guide to future performance.|
|Warning: The value of your investment may go down as well as up.|
|Warning: If you invest in this product you may lose some or all of the money you invest.|
|Warning: This product may be affected by changes in currency exchange rates.|
|Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment.|