Protected Growth Bond

Overview
FAQ

Overview

The MetLife Protected Growth Bond enables you to invest in the stock market with the confidence that your unit price will never fall below a certain protected level. You can choose the level of protection to suit your needs from 70%, 80% or 90%.

The Protected Growth Bond offers you:

Exposure to the stock market with the opportuntity for growth
Peace of mind, with a selected level of protection against market falls
The flexibility to invest for as long or short a period of time as you need
A valuable death benefit
The choice of onshore of offshore investment for tax efficiency, and can be used with a range of trusts for effective estate planning.

To find out more about the Protected Growth Bond and if it is right for you speak to your Financial Adviser or find an Adviser by clicking here.

FAQ

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What is the Protected Growth Bond?

It is a single premium, unit-linked, whole of life investment Bond that allows clients to benefit from investing in equities whilst also providing a level of protection against market falls. This protection is provided through one or more of MetLife’s Protected Growth Funds. Depending upon the level of protection selected, our Protected Growth Funds guarantee that the unit price will not fall below 70%, 80% or 90% of the fund’s highest-ever unit price.

What is the Unit Price?

This is the actual price of each unit in the fund. It’s value can go down as well as up. This is the price your client will buy and sell at.

What is the Protected Price?

Depending on which Protected Growth Fund you choose, 70%, 80% or 90%, the protected price is the percentage of the highest ever unit price. For example, on the 80% protected fund, if the unit price is £1.00 the protected price is £0.80. If the unit price increases to £1.30, the protected price will grow to £1.04. If the unit price subsequently falls, the protected price will remain at £1.04. The protected price will never go down.

Is all of my investment guaranteed?

There are three levels of protection, 70%, 80% and 90% of the highest ever unit price. Depending on which level you choose and when you invest, the protected price which will be based on this percentage. Where the unit price of the fund has fallen you could invest in a fund where the protected price is a higher percentage than these levels of protection.

How does MetLife provide the protection?

The Protected Growth Bond protects a percentage of the highest ever unit price of the fund.
When you put your money into the MetLife Protected Growth Bond, we divide it into two portions. One portion, or ‘basket’, is invested in the stock market, whilst the other portion, or ‘basket’ is invested in a cash fund. Each basket offers a different level of risk exposure – funds invested in the stock market are higher risk, whilst those in the cash basket are lower risk. Depending how the stock market performs, the amount in each basket will go up and down on a daily basis – essentially regulating and balancing your investment.

What happens if the unit price falls to the protected price?

In extreme market conditions, such as a significant fall in the stock market, the unit price could fall to the protected price and the fund may become entirely invested in cash. We call this ‘cash protection’ meaning that your investment would be protected from any further market falls but there would be no further exposure to equities. If you decided to switch to a different fund or cash in your investment at this point you would receive the unit price which will be no lower than the protected price.

If ‘cash protection’ should occur, we will write to you with details of alternative investment options available at that time.

Protected Growth Daily Report

To find out the latest fund prices and equity splits for all of the funds click here.

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Protected Growth Bond

Overview

FAQ

Protected Growth Daily Report

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