Royal & Sun Alliance has unveiled details of its nextgeneration investment bond, offering 20 fund options to IFAs and their clients.
The Lifestyle bond updates the company's existing inv estment bond range with a single, fully flexible product with access to with-profits, unit-linked and income distribution funds.
The product, available from January 29, allows up to 12 penalty-free fund switches a year. It also offers flexible income opt ions such as the ability to reinvest with-profits bon uses in the client's chosen unit linked fund. With drawals of up to 7.5 per cent a year can be taken on a monthly, quarterly, termly, half-yearly or yearly basis without incurring any penalty.
The unit-linked and inc ome distribution funds have an annual charge of 1.25 per cent, dropping to 1 per cent from the sixth year onwards. The with-profits fund charges are determined when the bonus rates are set.
R&SA says the design of the product comes in res ponse to IFAs' desire to switch their clients' funds more easily between with-profits and unitlinked funds.
IFA personal market leader Mark Edwards says: “The popularity of with-profits bonds has soared in recent years. Other types of investment bonds will play an increasing role in cli ents' investment portfolios and the freedom to choose is a key factor in the design of the Lifestyle bond.”