View more on these topics

Metlife launches new guaranteed bond

Metlife is launching a new guaranteed bond which offers capped and uncapped step-ups on guarantees.

The single premium offshore and onshore product, called Income for Life, allows investors to lock in potential gains every year or every two and a half years with the income and capital guarantees.

The annual step-up is capped at 10 per cent while the two and a half year step-up is uncapped.

The product will return at least the original investment less any withdrawals and death benefits are also payable. Investors can choose from a defensive, conservative or cautious investment strategy.

Defensive offers 30 per cent equity exposure, while conservative offers 45 per cent and cautious offers 55 per cent. These portfolios are mainly invested in UK assets with limited foreign asset exposure.

Investors can rebase their investment after five years to increase the tax advantages. The bond offers terms of between eight and 20 years. The minimum investment is £10,000 with a maximum of £1.5m.

The standard allocation rate is 100 per cent for the onshore and offshore bonds and there is no establishment charge. The AMC for the onshore bond ranges from 0.35 per cent for investments of £250,000 and above to 0.75 per cent for those below £50,000.

UK managing director Dominic Grinstead says: “Guarantees have proven themselves to be key in the retirement planning and long-term savings market and demand has grown strongly in the past year from advisers and clients.

“Income for Life has been designed specifically to address that by offering increased choice of guarantees so that more clients can opt to invest. Offering both capped annual and two and a half yearly uncapped step-ups is a major advance for the bonds market but we are well aware that guarantees have to be competitive and credible.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Please ignore this comment

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