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Globaleye has launched the first phase of a new buy-out scheme, in conjuction with an international finance and capital company, designed to release investors stuck in weak, under performing With Profits funds.

The agreement, negotiated by Globaleye in association with a consortium of banks, allows the buy-out of both geared and non-geared With Profits policies with a future maturity date, MVA free date or guarantee date.

The scheme means that the client's existing policies can be bought at a price that is based on the present-day-value of their future guaranteed value. In many cases this will mean that the client gets a value now for their existing policy that is far in excess of the current surrender value on offer from the insurance company. These higher proceeds can then be transferred into the higher performing funds, backed by the two strongest smoothed growth fund providers in the UK, Prudential and Norwich Union.

In addition to helping clients with straight With Profits investments, the first phase of the project can also help investors who may have geared policies.

Although not suitable for all holders of With Profits policies, the new scheme allows intermediaries to present a solution to their clients, whilst the investor has the potential to see a real return on their investment. Where policies have large MVAs, in the majority of cases Globaleye can offer a higher headline rate and a higher surrender value than the client's existing investment.

Many investors are currently very frustrated with funds brought from the likes of CMI, SMI and others. Until they can reach a guarantee date, a maturity date or an MVA free date there is very little that the client can do with the investment. With this new buy-out option, investors needn't wait, but can deal with the issue right now. Of course the real advantage is they are then able to transfer into strong funds, with the chance of making a real return on their money.