Turning to the charges, Robinson says: “It has a bog standard annual charge. The back ended charges are okay for five years or longer but they are expensive if you have to level out after two years, yield reduction from seven per cent to 5.35 per cent.”
MacFarlane thinks the charges are fair and reasonable but adds that he dislikes products with a back end charging structure. Gibbon says: “The annual management charge is slightly high. The fact there is no initial charge for lump sums might make it seem attractive. However, in the long term, the charges are on the high side.”
Turning to commission, the panel agree that it is standard.
Looking at the literature, Robinson says: “It is very simple and easy to read.” Holian agrees and says it is plain and straightforward.” Gibbon says: “It is reasonably standard but like all financial services literature, it must seem complicated to the public.”
MacFarlane says: “It is clear, concise, and simple to understand. It is well thought out, however, there is little useful detail included for the adviser. The literature is definitely aimed at the less sophisticated investor.”