View more on these topics

Investors exiting AIG enhanced fund likely to make 12 per cent loss, say valuers

Investors wishing to exit the AIG Life enhanced fund on December 15 would be likely to lose around 12 per cent of their total investment compared to the value before it was frozen, according to an independent valuation.

Third-party valuers Cairn Capital have forecast the assets in the enhanced fund would be likely to achieve 74.8 per cent of their value prior to September 15 when the fund was frozen.

Investors have been allowed to withdraw 50 per cent of their fund at full value, which means that the figure would amount to 25.2 per cent loss on the second half of their investment or a 12.1 per cent loss overall.

The loss is towards the lower end of what AIG Life initially suggested – which was between 50 and 80 per cent of the enhanced part of the fund- which could have led to a total loss of 25 per cent upon exit.

Investors can choose to keep their money in the fund via the maturity plan and remove it at any time or stay in the fund until 2012 whereby their full capital is guaranteed.

Alternatively, investors can take the conditional exit plan, which means that they would only withdraw their funds if the assets were able to achieve a specified threshold price.

Recommended

Predictions for the pre-Budget report

Chancellor Alistair Darling is being urged to cut taxes, increase stamp duty
thresholds and reduce corporation tax in order to stimulate the UK economy in next Monday’s pre-Budget report.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com