National Life is launching a new fixed term investment product. The Alternative Investment with Principal Guaranteed combines the safety of GICs and the potential for equity-like returns by offering a 100% guarantee on the principal and returns that are independent of stock market fluctuations

Using alternative management techniques, the AIPG effectively expands the opportunities within an investment portfolio while safeguarding the capital investment.

“Investors aren’t willing to take as many risks with their money as they might have been in the past, yet they still want the chance to earn a good return on their investment,” said Brenda Moore, director of marketing, retirement and investment products.

Alternative management styles allow the value of investments to evolve independently of stock markets, bond markets and foreign currencies. Because of this, managers can take advantage of more opportunities to realize an absolute return with lower volatility.

Over the five-year investment period, capital can grow more steadily so that the actual rate obtained with the AIPG, known at the end of the term, has the potential to surpass traditional GIC investment rates by as much as 10% or more.

Managed by State Street Alternative Absolute Return Investment Strategies, the AIPG features fewer investment restrictions than other products. That means that managers are free to apply different techniques, based on various styles, sectors and geographical regions, to one investment and create a highly diversified environment where investments grow more steadily, without increased risk.

The minimum investment required is $1,000, and the AIPG is eligible for RRSPs, LIRA and non-registered contracts.

The interest rate between the time of the contribution and the investment date is 2% on an annualized basis. The investment date is December 20, 2002. The investment term is a non-redeemable five years. The product is available until December 20.

A complete AIPG marketing kit can be obtained by contacting National Life via email at marketing@NationalLife.ca.