View more on these topics

Friends Provident launches guaranteed bond

Friends Provident has launched a guaranteed bond that enables investors to benefit from stock market growth while guaranteeing the return of the original investment either on death or after a five year period.

The Friends guaranteed bond is aimed at the more cautious investor with a lump sum of £10,000 or more, and invests in a purpose built capital assured fund, which is made up of a special fixed interest investment and the Barclays dynamic tracker fund.

A guaranteed 100.1 per cent payment of the value of the bond will be paid either upon death or after the five year lock-in period if the investor wishes to cash in. The guaranteed amount after five years has the ability to increase and any increases are locked in for the lifetime of the bond.

Friends Provident head of wealth management Christine Foyster said: “We’ve introduced our bond to reflect IFA and consumer need for secure investment products. Statistics from recent consumer research that we commissioned revealed that nearly two thirds (62 per cent) of investors said that they would be more inclined to opt for products with guarantees.

“The guaranteed bond provides the ideal opportunity for the investor who may want to protect their capital for their beneficiaries. Of particular interest is the fact that customers are able to keep their guarantee as long as they remain invested in the bond, so there is no pre-determined end date to the guarantee.”

The annual management charge is currently 2 per cent per annum. This charge is taken from the capital assured fund before the unit price is calculated.

Recommended

HSBC on the hunt for protection recruits

HSBC is understood to be headhunting key staff from leading protection providers in preparation for its launch into the intermediary market in the second half of this year.The news comes after it was revealed that general insurance firm Fortis is set to push into protection and is believed to have recruited former Friends Provident head […]

The role of The Pensions Regulator

Regarding the article headed Dual-regulation fears for pension companies (Money Marketing, February 1), the consultation on how The Pensions Regulator intends to regulate definedcontribution schemes does not set out to “expand our remit”. It is already part of our remit under the Pensions Act 2004 to regulate occupational DC schemes and group personal pensions as […]

How can I help develop my professional connections?

Graeme Ballantyne, business consultancy manager, looks at how you can maximise the opportunities through your professional connections As we move through the summer months it’s perhaps a good time to pause and reflect on whether the plans you’ve made for your business are bearing fruit. One area we at PruConsulting know many advisers have been […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment