View more on these topics

Friends Provident International redesigns bond

Friends Provident International has revamped its investment bond by adding another charging structure and portfolio fund to its original design.

This unit-linked bond now offers investors the reward option and a loyalty option. The reward option has an initial charge of 6 per cent, an annual management charge of between 1 per cent and 1.25 per cent and exit penalties for the first five years of between 5 per cent and 1 per cent.

The loyalty option is a new feature. It has no initial charge and the same annual management charge as the reward option. However, it has higher exit penalties at between 9 per cent and 2 per cent during the first five years.

Friends Provident International has also created the secure growth portfolio for the bond. It combines the protector fund and a with-profits fund. The with-profits fund differs from the previous with-profits fund in that investors are eligible for final bonuses from day one, instead of three years. As an alternative to the four portfolio funds, investors can choose from a range of 14 unit-linked funds managed by Friends Ivory & Sime.

Friends Provident International has increased investment choice but products such as Royal Skandia’s collective investment bond and Selestia’s offshore collective investment bond offer a wide range of external fund links. Friends Provident International provides access to external funds only through its open managed portfolio fund and does not allow investors to choose external funds themselves.

However, Friends Provident International’s limitations in this respect could be explained by its £5,000 minimum investment. Selestia’s minimum investment is £10,000 and Royal Skandia’s is even higher at £25,000.


Davies denies &#39shoot&#39 story

FSA chairman Howard Davies has rejected reports in a national newspaper that he told the head of a big IFA that he wanted to “round up and shoot all IFAs”. A story in The Independent last weekend claimed that in a private conversation about polarisation, Davies is alleged to have said: “I am trying to […]

Healthsure – Futures

Monday, 19 August 2002 Type: Healthcare cash plan Minimum premium: Level one – £7 a month, £84 a year, level two – £22 a month, £264 a year Minimum-maximum ages: 16-65 Maximum benefit: Level one &#45 health screening £150, specialist consultations £150, x-rays/scans £100, eyesight test £25, level two &#45 health screening £450, GP consultation […]

No lock-in on Abbey discounts

Abbey National is offering a new range of discounted and fixed mortgages with no extended tie-ins. The mortgages include a 1.15 per cent two-year discount loan giving a rate of 3.85 per cent. The rate is available on loans up to 75 per cent loan to value, is open to first-time buyers, movers and remortgage […]

Plan for cooling-off period on remortgages scrapped

The FSA has abandoned the idea of introducing a cooling-off period for remortgages after the industry said it did not make sense in the mortgage market. In feedback to CP98, the Draft Mortgage Source-book, the regulator said it was scrapping its plans. The industry said there is no justification for a cooling-off period because consumers […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]


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