Sterling Assurance is offering a new Isa exclusively to IFAs through
Zurich IFA Group.
The Sterling Isa is available from April 6 in maxi or mini versions. The
fund draws on a wide pool of in-house and external fund managers and
includes links to Newton, Invesco, Fleming and Close, many of which are
Threadneedle is responsible for 29 of the 56 funds. There are 14 external
inv estment houses. Sterling says multi-fund links are a hallmark of its
The Isa has flexible IFA commission options, including indemnity options
for monthly investments and/or trail commission. Initial commission is 4
per cent. Trail commission is 0.5 per cent of fund value.
Minimum investment is £100 a month or £2,000 lump sum for 2000/01. Maximum
is £7,34in a maxi or £3,149 in a mini. It is claimed to be suitable for
regular and single-premium investments as well as transfers. The cash
component in the maxi version is provided by the Mercury cash unit trust.
Annual charges reduce as the fund grows, decreasing as soon as the fund
reaches £15,000. Initial charge is 4.75 per cent. For investments up to
£15,000 the annual charge is 0.5 per cent plus VAT on Threadneedle funds
and 0.75 per cent plus VAT on ext-ernal funds.
For investments of £30,000 and over, it reduces to 0.1 per cent plus VAT
on Threadneedle funds and 0.2 per cent plus VAT on external funds.
Zifa spokeswoman Sandra Lymburn says: “Sterling has a pivotal role in the
Zifa portfolio of brands. By replicating many of the features which
propelled Sterling's highly successful investment bond into the top 10
providers of unit-linked bonds, we hope Sterling's Isa will be just as
attractive to IFAs and their clients and help Zifa achieve organic growth
in the IFA market.”