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Endowment fund reaches 160% guarantee ratio

The Endowment Growth Fund (EGF) advised by TEP market maker PolicyPlus, has achieved a guarantee ratio of 160% of net asset value, despite recent periods of great stock-market volatility.

Investors who have made an investment of £100,000 will now be covered by £160,000 of guarantees in sums assured plus attaching bonuses.

Since its inception in December 1998, EGF has achieved a growth of 17%, against a total fall of 28% in the FT-SE 100 Indx over the same period.

Graham Cottingham, investment director PolicyPlus, investment advisers to the Endowment Growth Fund, says: “The strength of underlying guarantees currently available from the EGF should be particularly attractive to intermediaries and investors looking for lower-risk investment possibilities at a time of great market volatility.

“EGF is actively managed, and each policy held by the Fund is reviewed frequently with a decision taken on whether to hold or sell the policy, based upon careful consideration of market conditions over time. Together with the safeguard of an independent actuary checking the best decisions have been recommended, this acts as a continual quality control mechanism”

The EGF is designed to form part of an overall investment portfolio and is attractive to professional and institutional investors, private trusts and SIPP or SSAS pension arrangements.

As an open-ended fund, the Endowment Growth Fund is able to buy and sell polices at the time in their terms when they offer the greatest growth. Closed ended funds buy policies to mature at dates to coincide with the term of the fund itself, and therefore hold the policies until their maturity dates &#45 while the best growth can be achieved in the middle years of their term.


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