Friends Provident has opened a special offer period on its revamped Income Distribution Bond, as we...
Friends Provident has opened a special offer period on its revamped Income Distribution Bond, as well as adding a high yield distribution fund managed by Friends Ivory & Sime.
The offer period will see allocation rates raised to 101.75% from 101% for investments of between £10,000 and £19,000, 103.5% from 102% for investments of between £20,000 and £99,999, and 103.5%, up from 102.5%, for investments of £100,000 and over.
The offer period lasts until 13 December. The FIS-managed High Yield Distribution fund invests largely in investment grade corporate bonds. The asset mix of the fund, as at the end of May, was 52% in overseas bonds, with 45% in UK corporate bonds and 3% in cash. Corporate debt rated B, BB or BBB made up a total of 84.7%.
Commission of 6% is available on the bond, with a further 0.25% initial commission payable for business submitted online. A 1% administration charge is made during the first five years of the product and it attracts a 1% annual management fee.
Friends Provident has also increased the number of free switches between funds in the bond from two to 12 per year.
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Invested from 2006-2011