onshore and offshore bonds launch will be followed by pensions wrapper in september
Selestia launches onshore and offshore investment bonds this week and will follow up with a pensions offering in September.
It has launched Selestia Life and Pensions to enable it to offer the onshore bond and pension wrappers, while the offshore bond is manufactured by Old Mutual International Guernsey, but Selestia distributed and branded.
Both bonds are made up of a number of unit-linked, whole of life assurance policies. The initial investment will be split between 1,000 policies to enable greater flexibility to investors when they cash in segments.
Both bonds are available in single or joint ownership versions and on single and multiple lives assured. There is also a capital protected death benefit option, guaranteeing the return of the full sum invested minus any encashments.
Investors, through their intermediaries, can select from any of the 195 funds from 31 fund management groups available on Selestia.
Both bonds feature a 6% initial charge, plus the underlying fund managers charges, or alternatively, a phased initial charge of 7.5% spread across 60 months. Annual management charges are 0.7% per annum for the first £15,000, 0.3% for the next £25,000 and 0.15% of all monies above the £40,000 level.
Minimum investment levels are set at £5,000 for the onshore bond and £10,000 for the offshore version and there is no maximum. Intermediary commission depends on a number of variables and is detailed in the table above.
The launch of the Selestia Collective Investment Bond puts Selestia, the Old Mutual-backed online investment consolidation and fund supermarket service, on track to provide a consolidated investment service to intermediaries and their clients by the end of the year.
Brett Williams, managing director of Selestia, said: 'We want to provide intermediaries with a wide range of wrappers to choose from to enable them to build tax efficient portfolios for their clients.'
The group has also added a property fund to its service, making an additional asset class available for inclusion in the bond wrappers. Initially, property exposure will be available through Norwich Property, although further funds are likely to be added in the near future.
Williams added Selestia is unlikely to ever include more than 250 funds on its website. Whereas rivals FundsNetwork and Cofunds aim to incorporate the majority of the funds universe, Williams said.
Havensrock Thrive App
Don’t ‘leave it all on the pitch’
21 firms in total
PA360 2019 conference
Latest news and analysis