The Hartford enhances investment bond offering

Hartford Gold continues to deliver further peace of mind and investment choice to customers with two new asset classes and seven new funds.

Hartford Life Limited, a subsidiary of The Hartford Financial Services Group, Inc. (NYSE: HIG), today announced several enhancements to its investment bond product, Hartford Gold.

The Hartford are adding seven new funds1 available through Hartford Gold, in response to IFA demand. This brings the total to 97 funds, including two new asset classes - international property and commodities.

The additional funds give IFAs and their clients greater flexibility to diversify their investment to help achieve long term growth. All 97 funds are available with optional guarantees - Hartford SafetyNet and Hartford SafetyNet for Life.

Hartford SafetyNet guarantees income for 20 years, whereas Hartford SafetyNet for Life guarantees income for life. Both optional guarantees enable the investor the potential to lock in up to 10% of the investment growth each year (up to age 75 2) to increase their guaranteed income over time. Despite the current market volatility and any future market falls, the guarantees ensure that the client's income will never fall below the previous highest guaranteed income level.

This means that clients who are taking income in today's market, are able to benefit from the guaranteed income they secured during the market peaks in 2007.

Richard Romer-Lee, Research Director and Founder of Old Broad Street Research Limited, a leading investment research company commented:

JP Morgan Natural Resources, New Star International Property, Schroder Global Property Securities, Artemis Strategic Bond, Fidelity European Opportunities, Invesco Perpetual Monthly Income Plus and Schroder European Alpha.

Although client's will still benefits from any increases in their fund value).

"The combination of the new funds and the unique optional features of Hartford Gold - guaranteed income and locked in gains - make the product even more attractive given the current volatile equity markets. Hartford Gold customers will be able to invest in a wider range of funds from cautious to adventurous to suit their investment objectives, with the peace of mind of knowing that their income is guaranteed and cannot fall."

The enhancements to Hartford Gold also come in the aftermath of Chancellor Alistair Darling's announcement in April's budget that Capital Gains Tax will be implemented at a flat rate of 18 percent. Romer-Lee commented further:

"The introduction of the flat CGT rate dispelled a level of uncertainty for IFAs on the CGT regime following the pre-budget speech in November. The commitment that The Hartford has made to its investment bond product with the enhancements announced today, demonstrates their belief that bonds will remain an important planning tool for many investors, especially those planning for retirement."

In addition to the new funds and asset classes being made available, The Hartford announced further changes to provide greater flexibility in asset allocation for clients self-selecting funds and have also revised the asset allocation for the managed portfolios.

Self selecting clients can still invest up to 100 percent of their investment in balanced funds and can now put up to 80 percent of the remainder in equities (previously the limit was 75 percent).

Up to five percent can be invested in each of the UK property, Global Property and Commodities funds. The managed portfolios now contain new funds including the Schroders Global Property Securities Fund and the BlackRock UK Dynamic Fund.

Michael Rudge, Managing Director, UK Branch, at The Hartford said: "IFA reaction to Hartford Gold continues to be very positive and is being reflected in our increasing market share. We identified the increasing popularity of our bond and after listening to IFAs, we further enhanced our offer and product, keeping pace with the specific demands and needs of the customer."

The enhancements to Hartford Gold announced today will also apply to The Hartford's personal pension product, Hartford Platinum, and the Trustee Investment Plan, Hartford TIP, which will provide customers with greater investment choice and portfolio flexibility.