Liverpool Victoria is revamping its with-profits product range to offer a bond with a range of asset-allocation models and the option of a five-year capital guarantee.Investors in the All-in-1 investment bond can choose between growth, balanced or cautious strategies, with the option of a five-year guarantee which is charged to the fund’s annual fee. Investments in the new bond will go into the 4.7bn Liverpool Victoria with-profits fund rather than into separate ring-fenced pots. Returns will be worked out by a hypothecated method, which matches the returns from the asset mix according to which asset-allocation strategy is chosen. Although the mutual hopes that the new product will boost with-profits sales, it does not expect the underlying with-profits fund’s asset allocation to be affec- ted, even if clients opt overwhelmingly for one strategy ahead of the others. The capital guarantee runs over five years and pledges to return 100 per cent of the original investment less any withdrawals. The unit price is given as an average price based on the last 26 weeks’ price movement to smooth short-term volatility. However, if the value of the underlying investments falls to 20 per cent or more of the averaged price, investors cashing in the bond will get the underlying investment return less any encashment charge. Encashment charges start at 5 per cent in year one falling by 1 per cent a year, with no levy after five years. Investors can make one free switch between strat- egies each year. Head of external affairs Nigel Snell says: “This product is much more in tune with clients’ desire for transpar- ency and choice, offering different strategies and no market value reduction.”
David Blunkett has resigned as Work and Pensions Secretary after breaking the ministerial code of conduct by taking a directorship of DNA Bioscience before May’s election, without consulting an independent body which advises on these matters.Blunkett was due to address the Work and Pensions select committee today but this meeting has been cancelled. There is […]
Cofunds says the cost of new business after launching new products with L&G could delay its break-even date although losses of 16m last year were in line with predictions. This year, the platform has seen assets under management increase by 1.8bn from 3.5bn to 5.3bn. The loss for the 12 months to December is down […]
John Hutton has been confirmed as the new Secretary of State for Work and Pensions, taking over from David Blunkett who resigned this morning.Hutton joined the Cabinet in May as Cabinet Office minister and was previously junior Health minister.He is seen as a Blairite who will look to push forward the Prime Ministers third term […]
Ivan Massow’s claims that Sesame has failed to back him adequatley over claims from gay clients have implications for the whole industry, say Paul McMillan.
Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.
In the video, Wintle addresses the following:
• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery
- Top trends
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The curious goings-on in the world of financial services
Experts have played down any immediate moves from the FCA towards those firms that are not prepared for Mifid II regulation that comes into force on 3 January 2018. However, concerns remain that a “material number” of small asset managers have not yet started preparing for the major European regulation. The FCA expects firms to […]
OMGI chief executive and star fund manager Richard Buxton is set to lead a management buyout of the single-strategy funds division of Old Mutual Wealth with the backing of TA Associates. The £550m deal is set to be announced before Christmas, Sky News reports. The buyout is part of Old Mutual’s managed separation, which is […]