Intrinsic Financial Services Takes On Engage Mutual Progressive Bond

Posted in: Products Last updated: 06 May 2007

Intrinsic Financial Services has extended its multi-tie product portfolio in association with Harrogate based Engage Mutual Assurance. Intrinsic will distribute Engage Mutual’s Progressive Bond – a single-premium bond, designed to meet the needs of customers looking for equity equivalent returns with lower volatility. This is the latest high profile relationship for Engage Mutual, which has recently entered the adviser market, and already enjoys relationships with some of the top companies in each of the life, retail and building society sectors.

Engage Mutual’s Progressive Bond aims to offer a solution for those customers seeking a balanced portfolio with the potential for better than cash returns, with profit reviews and re-balancing of portfolio risk. The bond also provides an option for penalty-free access to capital, for clients who are unsure as to whether they will need the money in the first five years.

Andrew Haigh, Chief Executive of engage Mutual Assurance, says:

“As a modern mutual we are keen to provide long-term investment products which help meet the needs of today’s family. We are therefore very excited to be working with Intrinsic Financial Services. This is clearly a dynamic company which has demonstrated to us their appetite for strong growth, through delivery of innovative and relevant product and service solutions.”

“This bond will appeal to those who want equity-style returns with lower volatility. The performance of the underlying fund over the recent market correction shows that it does exactly what is says on the tin and we believe it is potentially a core component in all client portfolios.”

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

The Engage Progressive Bond details:

  • A simple investment solution for investors looking for equity-style returns with a global bond-style volatility
  • Global diversification with a fund of funds structure
  • Peace of mind of a degree of capital protection with the additional overlay of Constant Proportion Portfolio Insurance (CPPI). CPPI is an active fund management technique which aims to lock in most gains each quarter.
  • The value of the bond can go down as well as up and investors may get back less than they originally invested
  • Withdrawals in excess of 5% of the original investment in any of the first five policy years may incur exit charges
  • If an investor withdraws more than the amount by which the plan grows then this will erode the capital, possibly to below the original investment
  • The value of any assets denominated in a foreign currency may be affected by exchange rate fluctuations which may cause the investment to go down or up