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Friends CPPI bond offers ethical link

Friends Provident is setting up a CPPI ethical fund with the equity component linked to its flagship Stewardship growth portfolio in a bid to attract disgruntled with-profits policyholders.

The Stewardship safeguard optimiser fund will be available through Friends&#39 investment portfolio bond from June. It will be comprised of cash and the £545m growth fund, one of the oldest ethical portfolios. As a CPPI fund, optimiser&#39s cash/ equity blend will be adjusted daily through an automatic process to provide upside exposure while offering protection against falling markets.

The fund will be the second CPPI product for Friends in the last six months, after the UK safeguard optimiser fund last December. Unlike that fund, the new portfolio will not only invest ethically but also actively, which Friends hopes will appeal to socially responsible investors looking for low-risk exposure to equities.

The launch of the fund, which has a £5,000 minimum investment , has been timed to coincide with the 20th anniversary of the Stewardship portfolio. The portfolio, which is benchmarked against the FTSE All-Share index, is up by 27.5 per cent over 12 months and has grown by more than 500 per cent since launch.

Head of investment marketing Ian Jeffries says: “The investment bond market is dominated by with-profits but this is a low-risk, ethical vehicle which offers much greater transparency through CPPI.”

Alan Steel Asset Management consultant David Scott says: “The Stewardship fund has previously done not too badly but I would sell this fund only with plenty of caveats attached.”


Invesco VCT targets Aim-listed firms

Invesco Perpetual is launching a £40m venture capital trust investing in AIM-listed companies in a bid to exploit the Government&#39s latest tax breaks. The VCT, sponsored by Noble & Company, will be managed by a team headed by Andy Crossley and Richard Smith. It is expected to open in mid-June at an offer price of […]

Watkins quits Bestinvest after sluggish demand for closed-end service

Bestinvest head of investment trusts Andrew Watkins has left the company after just eight months following slow demand for its recently launched closed-end services. Watkins, Jupiter&#39s former investment trust chief who joined Bestinvest last October, had been marketing the company&#39s investment trust division which offers manager appraisal, selection and monitoring services to board directors. But […]

CML predicts housing market trends and interest rates

Speaking at the Mortgage Business Expo in Manchester today, the Council of Mortgage Lenders senior economist Jennet Vass said she expects interest rates to rise to five and a half per cent by the end of the year. Vass said the predicted rises would cause a gentle slowdown in the housing market and the CML […]

Pink offers a taste of Freedom

PINK HOME LOANS Freedom Finance FS 1 Year Discount Type: Discounted-rate mortgage Discounted term: One year Discount:1%Payable rate:4.83% Minimum loan: £25,001 Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000 Income multiples: Based on affordability calculation and credit score Arrangement […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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