Aeltus Launches Aetna Principal Protection Fund IV; First Three Principal Protection Funds Generate More Than $400 Million in Sales.Business Editors HARTFORD, Conn.--(BUSINESS WIRE)--July 6, 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 fourth mutual fund with a guarantee of principal. Aetna Principal Protection Fund IV is being offered to investors for just thirteen weeks - from July 6, 2000 to September 6, 2000 - with a Guarantee Period running from September 7, 2000 through September 6, 2005. "We decided to offer a fourth mutual fund with a guarantee of principal due to the success of our first three 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 Aetna Principal Protection Fund I, II and III -- and we weren't disappointed." Consistent with the first three offerings, 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 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. , Aetna Principal Protection Fund IV allocates assets according to 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. Combined sales of Aetna Principal Protection Funds I, II and III were more than $400 million. "As we anticipated, many investors are looking 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. According to Frank Litwin, head of sales and marketing for Aeltus, "the success of Aetna Principal Protection Fund I, II and III can't be measured just by the amount of sales. Through the considerable interest in this series, we have also strengthened our relationships with brokers who currently sell our products and developed a number of new broker relationships." The guarantee of principal offered by Aetna Principal Protection Fund IV 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 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 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 06103. Read the prospectus carefully before you invest or send money. Visit our Web site at http//:www.aetnafunds.com. |
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