Aeltus Launches Aetna Index Plus Protection Fund; Fund Offers Investors Additional Features.Business Editors HARTFORD, Conn.--(BUSINESS WIRE)--Oct. 2, 2000 Aeltus Investment Management, Inc., investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and to the Aetna Funds, today announced the launch of its fifth mutual fund with a guarantee of principal. Aetna Index Plus Protection Fund is being offered to investors for just eight weeks - from October 2, 2000 to November 29, 2000 - with a Guarantee Period running from December 1, 2000 through November 30, 2005. "We decided to offer a fifth mutual fund with a guarantee of principal due to the success of our first four offerings," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Neil Kochen, Aeltus portfolio strategist. "Given the continued market volatility, we had anticipated a high level of interest among investors in our first four Aetna Principal Protection Funds -- and we weren't disappointed." Aetna Index Plus Protection Fund differs from the previous Aetna Principal Protection Funds in that, after the Guarantee Period, an enhanced index strategy is employed. During the Index Plus Large Cap period, the Fund seeks to attain better-than-index (S&P 500) performance with index-like characteristics by selecting stocks in the S&P 500 Index that Aeltus' management team believes will outperform the Index and underweighting or eliminating those stocks the team believes will underperform the Index. With the addition of this Index Plus Large Cap Period, investors do not have to liquidate their holdings at the end of the Guarantee Period. Like the other Aetna Principal Protection Funds, Aetna Index Plus Protection Fund is not a balanced fund Balanced Fund A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund. which is required to maintain a predetermined pre·de·ter·mine v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines v.tr. 1. To determine, decide, or establish in advance: allocation between equity and fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. . During the Guarantee Period, this Fund allocates assets according to prevailing market conditions, and can adjust its allocation to 100% in either equities or fixed income securities, or maintain a combination of both, while guaranteeing the investor's principal investment. Combined sales of the first four Aetna Principal Protection Funds were more than $450 million. "As we anticipated, many investors continue to limit their downside risk Downside Risk An estimation of a security's potential to suffer a decline in price if the market conditions turn bad. Notes: You can think of this as an estimate of the amount that you could lose on a stock or other investment. in these volatile market conditions, but want to continue to participate in the bond and stock markets," said Mr. Kochen. "We think there will be continued interest in a mutual fund with a guarantee of principal. Investing in this fund is a great way to manage your risk while participating in the market." The minimum investment for Aetna Index Plus Protection Fund is $5,000. The guarantee of principal, offered during the five-year Guarantee Period, is backed by the AAA-rated financial strength of MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation. The AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. rating applies to MBIA's financial stability and claims-paying ability, not to the safety of the mutual fund shares. Investors who hold their investments for the fund's five-year Guarantee Period (December 1, 2000 through November 30, 2005) are ensured that their account value on the last day of the Guarantee Period will be no lower than their initial investment, less any sales charges or redemptions and cash distributions. If investors take withdrawals during the Guarantee Period, shares are redeemed at current market value, which may be more or less than their original investment. Aeltus, which manages institutional assets and is investment advisor to the Aetna Funds, is an independently managed subsidiary of Aetna Inc., with more than $56 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Aetna Mutual Funds are distributed by Aeltus Capital, Inc. For a prospectus containing more complete information including sales charges and expenses, write to Aetna Mutual Funds, 10 State House Square, Hartford, Connecticut “Hartford” redirects here. For other uses, see Hartford (disambiguation). Hartford is the capital of the State of Connecticut. It is located in Hartford County on the Connecticut River, north of the center of the state. 06103. Read the prospectus carefully before you invest or send money. Visit our Web site at http//:www.aetnafunds.com. |
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