CGU has unveiled its Portfolio Bond offering a range of unit linked funds including unitised with-profits. Most of its features are taken from the former General Accident bond although it also provides access to the income portfolio which is linked to the former Commercial Union monthly income plus unit trust.
The performance of this has been good over the last three years, according to figures from Standard & Poor's Micropal. It is ranked 3rd out of 58 in its sector providing £1,587.97 back, based on a £1,000 initial investment. Figures are as at October 2, 1998 and are on a bid-to-bid basis with net income re-invested.
The bond adopts its with-profit performance from General Accident which is currently paying a reversionary bonus of 7 per cent a year.
Investment in the with-profit fund is restricted to 75 per cent of the initial investment.
The bond is competitively priced with no initial charge. Instead there is an ongoing set up charge of 0.5 per cent a year for the first five years for bigger investors with £10,000 or more to invest. This is slightly less competitive for smaller investors with under £10,000, as they are charge 1 per cent a year.