Hibernian Aviva announces market beating deposit fund

17th June 2009

Pension investors seeking security and a strong short term return can now get a market beating deposit rate of 5% gross over 15 months for deposits invested until September 2010 while also benefiting from the tax relief on pension contributions.  As many investors continue to focus on wealth protection and preservation rather than wealth creation, Hibernian Aviva, the country’s largest insurance group, has launched the new fund to help consumers achieve peace of mind and prosperity. 

The fund, the Aviva Irl Fixed Rate Deposit Fund, works by investing in a fixed rate deposit account with Allied Irish Banks p.l.c. and  will pay a fixed rate of return of 4% gross AER* to investors who remain invested until 30 September 2010. This means that anyone investing before 30th June will get a 5% gross over the 15 months to September 2010.  Customers will also receive a 0.5% extra allocation when they make an investment of €25,000 or more before the end of June.

At the end of the investment period, the value of the fund will be switched automatically to an Aviva Irl Cash Fund (subject to the terms applicable at that time) or on instruction to any fund across Hibernian Aviva’s extensive fund choice. The investment is characterised as low risk as AIB provides a capital guarantee on the fund. Hibernian Aviva has launched the fund to provide investors with a secure return that is not vulnerable to the current swings and volatility of financial markets.

Commenting on the new fund, Michael Gordon, Executive Manager of Investments and Funds at Hibernian Aviva said “In the current climate many investors are looking out for peace of mind and security as well as a good return on their investment. A fixed rate deposit fund provides this security and the competitive investment rate and the extra 0.5% allocation on large investments makes the Aviva Irl Fund a very attractive option.”

For more information on this limited offer, investors should speak to their Financial Adviser.

- Ends –

For further information contact:

Hibernian Aviva
Evelyn Vaughan, Fleishman Hillard Tel. 01 6188 425
Alan Tyrrell, Hibernian Aviva Tel. +++ 353 (0)1 898 5452 / 00353 (0)86 850 8673
Maura McBride, Hibernian Aviva Tel. +++ 353 (0)1 898 5574

Notes to editors:

About Hibernian Aviva Life & Pensions

Hibernian Aviva is the third largest life and pensions provider in Ireland and the main insurer in the broker market. It offers a comprehensive range of financial products for life assurance, retirement and investment needs. The company is committed to delivering security, quality and value.

About the Aviva Irl Fixed Rate Deposit Fund

The Aviva Irl Fixed Rate DepositFund invests in a fixed rate deposit account with AIB Bank under which AIB Bank have agreed with Hibernian Aviva Life & Pensions to provide capital protection and interest payments. The unit price of the Fund will reflect the interest accrued less the annual fund management charge outlined below (and normal product charges will also apply). However, Hibernian Aviva Life & Pensions commitment is limited to the amounts it actually receives from AIB Bank under the terms of the deposit with them – and Hibernian Aviva Life & Pensions will not use any of its assets to meet any part of its commitment. Hibernian Aviva Life & Pensions policyholders do not have a contract with AIB Bank or any recourse to them with respect of benefits.

The fund is available for lump sum pension investments only.  The fund is available on the following pension products, which carry an annual fund management charge as outlined below.

As well as the fund management charge, normal product charges, as indicated in the relevant product brochure apply.

* AER is annual equivalent rate.

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