Is there an alternative to low deposit rates?

Your corporate clients work hard. Their money should too.

Aviva’s Investment Bond may be able to provide the potential returns your corporate clients want.

It makes sense for your clients to hold some of the cash on their balance sheet to meet short term cash flow needs. However, holding all of their surplus cash on deposit may be inefficient and have a negative impact on their balance sheet as:

• Corporate deposit rates are at historic lows: With a number of banks now offering negative interest rates and the highest five year fixed term deposit AER is 0.1% (source: Bonkers.ie 11 October 2021)
• Inflation is eating into the value of their investments: Ireland’s annual inflation rate increased 2.8% in August of 2021 (Source: Trading Economics 11 October 2021). With interest rates at historic lows, returns on deposit accounts are not keeping pace with inflation eating into the real value of your client’s balance sheet.

Is there a better solution?

If you want to give your corporate client’s surplus money the potential to work harder than deposits, the potential to outperform inflation, now may be the right time to speak with them about Corporate Investment Bond from Aviva. When your client invests in Investment Bond, their money will be invested in a fund to match the risk profile they are comfortable to take. This means it will have strong growth potential, particularly over the long-term. Aviva offers your clients access to a broad range of funds across the risk spectrum, asset classes and from a range of leading global fund managers. The following chart show how lump sum investors in some of Aviva’s more popular funds have posted strong returns over a five year period.

Source: Longboat Analytics. The returns quoted include the reinvestment of net income, are net of trading costs and net of an annual management charges of 1% for the High Yield Equity Fund, Multi-Asset Fund Strategic, 0.5% for the Merrion Multi-Asset 70 Fund, 0.95% for the L&G Multi-Index Fund IV and L&G Multi-Index V Fund, 1.13% for the Stewardship Fund, and 0.75% for the Compass Cautious Fund. For details of the charges applicable on your fund selection contact your Financial Broker. . Other insurance contract charges apply and as such the returns shown do not represent the returns on insurance contracts linked to these funds. Details of all charges for a particular product are available on request.

Why now is the time to talk to your corporate clients?

With a number of companies having their tax year end at 31st December, this will create a focus amongst Company Directors of the need to put the balance sheet to work to generate non-trading income, historically provided by deposits. Putting the right investment strategy in place now, will start to address these issues ahead of their financial year end.

Why Aviva for Corporate Investments?