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AIG Life protected recovery fund values rise 14 per cent

AIG Life has seen its £2bn protected recovery fund jump 14 per cent in value since its launch.

AIG Life says the past quarter has been less eventful than previous ones and says that although low interest rates will effect final return of the PRF, the current environment does highlight the strength of the guarantee.

The group is offering a 2012 underpin price which is 20 per cent higher than the August 2009 price.

AIG Life paid out £100m, or just over 5 per cent, to investors in its protected recovery fund on June 6.

By mid-December last year 95 per cent of investors in the enhanced fund, which was suspended on September 15 2008, chose to transfer half their assets into the protected recovery fund, with the other half taken as a cash lump sum.

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Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.

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