View more on these topics

Friends Provident International peaks with bond

Friends Provident International has created an Isle of Man domiciled unit-linked bond which provides free switching between 95 funds from 31 fund management groups. The bond is available in sterling, euros, US dollars and Hong Kong dollars. Investors can choose up to 10 fund links at any one time from fund management groups including Fidelity and Gartmore.

Friends Provident International has negotiated special terms with the fund management groups so investors in the bond do not have to pay an initial charge on any of the funds they choose. Instead, the funds are single priced with annual charges between 0.1 per cent and 3.35 per cent.

There are three categories of fund links international managed, specialist and euro funds. These enable investors and their advisors to construct diverse, risk-tailored portfolios.

The bond is normally made up of a cluster of 10 policies of equal amounts but investors can choose to have up to 100 policies. They can access their capital at any time but penalties will apply if they surrender during the first five years. This penalty is 5 per cent in the first year and reduces by one per cent each year.

However, investors can make withdrawals of at least 500 or the currency equivalent on a monthly, quarterly, termly, half yearly and yearly basis to provide a regular income. Up to 10 per cent can be encashed each year as long as at least 5,000 remains invested.

This bond offers a good selection of fund links without being overwhelming. However, one potential drawback is that fund switching may not be free in the future. Another is that a UK investors who invests offshore for tax reasons will be liable for income tax once the proceeds of the bond are transferred onshore and this could hit them hard, particularly higher-rate taxpayers.


FSA to review key facts documents

Speaking at the Council of Mortgage Lenders conference in London today, FSA managing director of retail services Clive Briault revealed the regulator has started to review some examples of Key Facts documents.He said this is to assess how its new rules are being applied in practice, and said the initial focus has been on the […]

A class act

I have heard talk of modern portfolio theory and asset class investment funds. Can you explain how these funds work?The foundation of modern portfolio theory was a 1952 paper, Portfolio Selection, in which Dr Harry Markowitz established a theory explaining the best way for an investor to choose a portfolio. His basic theory was that […]

UK interest rate is held at 4.75 per cent

The Bank of England has today frozen the UK interest rate at 4.75 per cent.The rate hold was expected by most industry pundits and has been welcomed. It is thought this is the peak of the base rate and we will see cuts next year as long as the global economy does not provoke otherwise.Purely […]

Inheritance tax and estate planning – exemptions and reliefs

By Kim Jarvis, technical manager with Canada Life’s ican Technical Services Team In this article we look at the main exemptions and reliefs that are available on death. Within the article, spouse also means civil partner.   Nil-rate band Under current rules, any part of the estate that falls within the available nil-rate band (NRB), […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm