View more on these topics

F&C feels Blue as it steps into the UK retail market

Foreign & Colonial is to take the first step in its UK retail expansion next month with a tax-efficient income product called Blue.

The new Oeic, which is set to launch on February 5, aims to offer an annual tax-free return of between 5 per cent and 5.5 per cent after charges by exploiting investors&#39 capital gains tax allowances.

It will invest in a range of global equities, bonds and other fixed-income and protected investments.

The product has low risk levels equivalent to a gilt fund. There is a front-end charge of 3.25 per cent and an annual fee of 0.75 per cent.

Initial commission is up to 3 per cent with 0.25 per cent trail. The offer period runs until February 25, with shares priced at 50p.

The product is the first of three new funds being offered by F&C&#39s retail arm this year, with two to four new fund launches plan ned every year for the next five years.

Head of UK retail Philip Childs says: “For us to succeed as a niche player in an extremely competitive market, we have to differentiate ourselves in almost every way. I think Blue distinguishes us on the product front. There is nothing like it on the market. It is totally innovative.”

Recommended

£350k fines for United Friendly and Refuge

Royal London-owned United Friendly Insurance and Refuge Assurance have been fined £350,000 each by the PIA for breaching regulations on with-profits end owment sales. The PIA found that the firms failed to take account of the customer&#39s stated savings objectives, did not ensure the customer could afford the contract, did not establish whether the customer […]

Stakeholder focus on divided industry

The Money Marketing Focus Stakeholder Update reveals an industry split over what constitutes material disadvantage on pension policies sold prior to stakeholder. The Update says the FSA has avoided giving detailed guidance on the definition of material disadvantage when a client transfers into stakeholder from another style of scheme. This has led to providers taking […]

Chain reaction

Is there a future for the mortgage code or do you think the mortgage market is holding off for the FSA to regulate the market directly? JM: I do not believe the mortgage market lenders or intermediaries are waiting for the FSA to regulate directly. The MCCB is an effective regulator creating higher standards in […]

With-profits without risk

Bob BullivantCorporate development director,Britannic Retirement SolutionsTrevor Mitchell&#39s response to an article by Britannic Retirement Solutions chief executive Mike Fuller was published on the same day that BRS launched its revolutionary new with-profits annuity, which was designed specifically to add ress the issues raised in Tre vor&#39s article. An annuity rate consists of only three factors […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment