View more on these topics

Product matters

It is always interesting to see a new product from a major provider. Clerical Medical has the name awareness in the UK and the offshore markets to ensure its products must be considered. Clerical Medical International&#39s global investor bond is a distinct offering of two products within the one wrapper which covers the market for UK and non-UK investors.

The extensive range of funds available, allowing investment in around 170 management groups, will cover most clients&#39 requirements. The ability for non-UK investors to hold quoted equities in the account will also be of interest to many wealthy clients who already hold a share portfolio, where a share-exchange facility may be of interest.

The charging structure has the potential to be confusing. There are three different charging structures, each with additional layers of charges being applied for service, additional investments and additional valuations. It may be difficult to compare the cost-effectiveness of this product against competitors due to this layering. The “initial charge” option is at the top end of the market at 8.5 per cent.

However, the “investment credit” feature, where rebated management fees are credited to the account, is an interesting feature and may overcome client resistance to costs. Again, it would be difficult to quantify the value because of varying levels of rebates paid by management groups.

Overall, the global investor bond is an interesting product and warrants consideration for offshore investments that exceed the minimum of £100,000.

Robert Rackliffe is managing director of Jackson Batten Financial Group

Recommended

Virgin Money reinvents itself with loan range

Virgin Money is planning to set up a range of mortgage products in a bid to capitalise on former sister company Virgin One losing the Virgin brand from its title at the end of the year.Current account mortgage provider Virgin One has to rebrand by December 31 under an agreement struck between Royal Bank of […]

Many towns too costly for first-time buyers

First-time buyers face being priced out of the market in many of Britain&#39s biggest towns, according to the Halifax.Its research shows that, in 451 towns, buying a home is beyond the reach of one-third of potential first-time buyers.There is a marked geographic divide, with house prices in Southern England unaffordable for four-fifths of average-earning FTBs […]

New Star recruits Invesco and M&G chiefs

New Star has recruited Invesco Perpetual UK manager Stephen Whit-taker and M&G Inter-national chief investment officer Theodora Zemek.Whittaker is replacing Alan Miller at the helm of New Star&#39s £200m UK growth fund from August.Miller is moving within New Star to concentrate on its hedge fund business.Whittaker runs Invesco&#39s £730m UK growth fund, which will be […]

NU&#39s MPPI can cover credit cards and bills

Norwich Union is offering mortgage payment insurance which allows borrowers to extend coverage from their mortgage to other outgoings such as loans, credit cards and regular bills.The product replaces its MPPI offering and includes a 33 per cent introductory discount for claim-free customers.There is no qualifying period for unemployment cover for claim-free customers who take […]

Japan: mid-year review and outlook

By Chris Taylor, Manager of the Neptune Japan Opportunities Fund H1 2014 Economy: after a harsh winter that slowed activity in the economy, the main event of the first half of the year has been the debate over what impact the 1 April VAT hike from five to eight per cent would have; we are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment