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Pru International branches out with prudence bond

Prudential International, the newly formed offshore branch of Prudential, has established a with-profits and unit-linked bond called the international prudence bond.

The bond is marketed mainly as a with-profits bond, but in addition to two with-profit funds, it offers a range of 11 unit-linked funds from five external fund managers.

One of the with-profits funds is sterling denominated and the other is euro denominated. Both invest in the Prudential with-profits fund. The sterling denominated fund has an annual bonus of 4.5 per cent, while the annual bonus for the euro denominated fund is 4 per cent. A loyalty bonus of 0.2 per cent a year is awarded to investors from year six if no withdrawals are made during the year. Withdrawals can be taken monthly, quarterly, half-yearly and yearly.

Investors with different investment objectives also have access to 11 unit-linked funds, which include two balanced managed funds and nine external funds from Newton, Merrill Lynch and Schroders. The first 20 fund switches each year are free.

The bond&#39s strong points are the flexibility to switch between funds and the tax efficiency that comes with offshore investment. Cautious investors who are wary of stockmarket volatility may go for the with-profits option, while those who are willing to take on more risk can opt for the unit-linked funds. If risk profiles change, there should be another fund that investors find more suitable.

However, as with all with-profit bonds, the level of future bonus rates may fluctuate and some investors may feel that the 11 unit-linked funds do not provide enough diversity.


Wesleyan offers discount funds

Wesleyan is offering a 1 per cent discount on the Wesleyan Growth Trust and Wesleyan International Trust.The discount is available on single premium investments over £2000 made into the funds until May 6 and can be made through existing or new Isas or unit trusts.The mutual assurance society’s growth trust was launched in 1995 and […]

Norwich & peterborough – Quantum Account (11th issue)

Friday, April 5 2002 Type: High interest account Minimum-maximum investment: £1,000-£25,000 single life, £50,000 joint life Interest rates: 4% gross a year until March 31, 2003, 4.5% gross a year until March 31, 2004, 5% gross a year until March 31, 2005, 5.5% gross a year until March 31, 2006, 7.5% gross a year until […]

Standard Life pays off 1% of loan capital every two years

Standard Life Bank is offering a capital reward mortgage which promises to pay 1 per cent of a customer&#39s outstanding capital every two years for the full term.The product has a current standard variable rate of 5 per cent for loans to value of up to 90 per cent, rising to 5.2 per cent on […]

Confusion at Treasury and FSA claims on mortgages

The mortgage industry has been thrown into confusion by conflicting messages from the FSA and Treasury over the status of advisers when regulation is introduced in 2004.The confusion surrounds a statement in the Treasury&#39s Regulating Mortgages consultation paper which says “an independent mortgage intermediary who becomes authorised in relation to the activities of mortgage arranging […]


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