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MGM&#39s capital bond offering 12 fund links

MGM Assurance&#39s capital investment bond features up to 12 fund links.

The bond has a minimum investment of £7,500 and an initial charge of 5 per cent.

There is also an exit charge of 5 per cent in year one decreasing by 1 per cent each year to 1 per cent in year five, then zero thereafter.

For unit-linked funds there is also a 1 per cent annual charge.

Investors have the choice of with-profits or 11 unit-linked funds, including deposit, European, fixed interest, international equity, Lazard&#39s managed, managed, North American, Pac-ific Basin, property, special situations and UK equity. The with-profits bonus is 4.5 per cent.

Allocation rates for investors under age 75 are 101 per cent for investments of £7,500 to £14,999, 103 per cent for £15,000 to £29,999, 104 per cent for £30,000 to 39,999 and 105.3 per cent for £40,000 plus. For investors aged 76 to 84, the rates are 1 per cent lower.

General manager IFA Ian Gilmour says: “The new bond will bolster MGM&#39s already strong position in the marketplace and will include a 105.3 per cent allocation band for investments of £40,000 and over, which has the effect of cancelling out the bid/offer spread.

“Existing MGM bond clients also benefit from our cumulative approach to increased investments. We treat the additional investment as an increment to the original policy.”

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