Aeltus Launches Aetna Principal Protection Fund I; Principal Guarantee Backed by MBIA Insurance Corporation.HARTFORD, Conn.--(BUSINESS WIRE)--Aug. 2, 1999-- Aeltus Investment Management, Inc., advisor to the Aetna Funds, today announced the launch of Aetna Principal Protection Fund I, a mutual fund that allows investors to protect their principal while participating in both equity and fixed-income markets. "With the long bull market beginning to show some gray hair," said Aeltus investment strategist, Jim Griffin, "the Aetna Principal Protection Fund I offers investors a vehicle to help them lock in some of their profits while continuing to take advantage of the potential upside to the stock market." The offering period for the Fund is just two months -- from August 6, 1999 to October 5, 1999 -- with the guarantee period running from October 7, 1999 through October 6, 2004. What makes this fund unique is that, unlike 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 pre-determined allocation between equity and fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. , Aetna Principal Protection Fund I allocates assets 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. prevailing market conditions. As a total return fund, it 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. "This fund is ideal for investors who want to participate in the stock and bond markets, while limiting the 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. of investing," according to Neil Kochen, Aeltus portfolio strategist. "As with all investments managed by Aeltus, we use a disciplined approach that eliminates the guesswork of market timing, and manages risk." The launch of Aetna Principal Protection Fund I follows the introduction of Aetna's popular GET E variable portfolio, which also has a guarantee feature. According to John Kim, Aeltus president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "Aeltus is committed to developing smart solutions that will help investors achieve their investment goals. Aetna Principal Protection Fund I is one example of how we were able to identify specific investor needs and develop a product to meet those needs." Investors who hold their investments for the fund's five-year period are ensured that their account value on the last day of the period will be no lower than their initial investment, less any sales charges Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select 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 acts as 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, is an independently managed subsidiary of Aetna Inc., with more than $50 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. Variable products are offered by Aetna Life Insurance & Annuity Company. 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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