The Corporate Investment Opportunity
Investment Subtitle
It makes sense for your clients’ businesses to hold cash on their balance sheet to meet short-term cash flow needs. However, having all their surplus cash on deposit may be inefficient and hurt their balance sheet given deposit rates are still lower than inflation1.
Stephen Rice, Investment & Pensions Proposition Lead at Aviva Life & Pensions Ireland, provides insight on how Aviva’s Investment Bond may be able to offer higher potential returns.
Why Corporate Savings and Investments?
If you want to give your clients’ company’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 a Corporate Investment Bond or Corporate Savings Plan. When you do this, their surplus money will be invested in funds meaning it will have good potential for growth, especially 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 table shows how lump sum investors in some of Aviva’s more popular funds have posted strong returns over a five-year period.
Growth of €50,000 single premium investment gross of charges and tax over five years to 01 October 2023
| ESMA Risk Rating | Gross Investment Value 01 October 2023 | Gross Gain/Loss | |
| Cash Fund | 1 | €50,519 | +€519 |
| Concept K | 4 | €61,489 | +€11,489 |
| Cantor Fitzgerald Multi-Asset 50 | 5 | €63,511 | +€13,511 |
| Cantor Fitzgerald Multi-Asset 70 | 5 | €69,138 | +€19,138 |
| High Yield Equity Fund | 6 | €87,490 | +€37,490 |
Source: Longboat Analytics 01 October 2023. The returns quoted include the reinvestment of net income, are net of trading costs and gross of annual management. 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 is now the time to talk to your corporate clients?
With the inflation still making daily headlines, Company Directors are acutely aware of the need to put their balance sheet to work to protect their real value of profits.