AIA to launch RM100mil trust fund next week

AMERICAN International As- surance Co Ltd (AIA) will next week launch a RM100mil trust fund called the Capital Guaranteed account 120, the fifth of its Capital Guaranteed fund series since it was first launched in October 2001. 

Its senior vice-president and general manager Mark S. O’Dell said the fund was aimed at conservative investors who wanted stable returns on their investments. 

AIA has guaranteed a total return of 120%, including the principal sum for investors at the end of the eighth year, or 2.5% per annum. 

Dell said that on top of the guaranteed returns, investors could also expect to gain from bonus payment, subject to certain conditions which altogether would provide a total of 136% for the investment. 

An investor who purchases the fund will get a free death insurance coverage of 125% of single premium plus a loyalty bonus of 1% of the single premium at the end of the fourth year from his policy's effective date, provided there is a growth of 20% in the KLSE Composite Index (CI).  

On top of that, at the end of the eighth year, a maturity bonus of 2% of the single premium will also be paid out should the CI grow by more than 50%. 

Investors are allowed to liquidate or terminate their investments before the stipulated period but the 120% capital return is guaranteed only at the end of the eighth year. 

O’Dell said 80% of the fund would be placed in bonds and the balance in equities. 

The fund will be sold through Southern Bank branches and 8,000 AIA agents nationwide between Sept 15 and Oct 23. 

The previous four launches, with total fund size of RM200mil, were all fully snapped up. 

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