View more on these topics

Chartwell issues With Profit Bond guide


Investors should beware of high headline bonus rates when investing in with profits bonds according to Bath IFA Chartwell Investment Management.


In Chartwell&#39s eighth edition of its &#39With Profit Bond Guide&#39, associate director Patrick Connolly says too many private investors are attracted by a high headline bonus rate, but this may not be the best product.


Connolly says a better guide to the best bonds would be to look at overall return over five years or more.


He says: &#34A current bonus rate of 7 per cent looks far more appealing than a rate of 6 per cent but we would stress that the financial strength of the company and its past performance in with profits funds deserve far more attention than the headline bonus rates, often designed solely to entice funds from investors.&#34


The guide says that current annual bonus rate, terminal bonus history, allocation rates, charges, financial strength, past performance, asset allocation and commission structure should all be taken into account.


Top ten recommendations are Prudential, Norwich Union, Scottish Widows, Scottish Equitable, CGU Life, Clerical Medical, Scottish Mutual, Royal & SunAlliance, Legal & General and Friends Provident.

Recommended

Pru announces increase in new IFA business

Prudential has posted a 24 per cent increase in weighted profits for business from its IFA channels.First quarter results to March 31, 1999, show a 25 per cent increase for IFA business to £968m from £777m for the same period of 1998.IFA single premium business was also up 25 per cent to £925m from £741m […]

BGI Funds launch high Yield Corporate Bond Fund

Barclays Global Investors is set to launch a high yielding corporate bond fund.The BGI Optimum Income Fund will have an estimated gross annual yield of 7 per cent.The fund which will avoid investment in so called &#39junk bonds,&#39 aims to provide the high yield through investment grade bonds with an average &#39A&#39 rating or unrated […]

UNUM appoints two new board members

Disability insurer UNUM has appointed two new board members. Lawrence Churchill, who joined UNUM as managing director six months ago, takes over as chairman from Tom Brown who retires after many years&#39 service with UNUM.Risk management director Susan Ring, who has been with the company since 1995, has also joined the board.

Edinburgh Fund Managers sets up institutional business team

Edinburgh Fund Managers has set up a dedicated UK institutional business team.Edinburgh Institutional Client Management will be headed by Carole Haddow, previously the group marketing director.ECIM will be responsible for new and existing institutional business.The group has also announced its appointment as managers to the £20m Continental European Equity portfolio of the University of Oxford […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment