Canada Life has launched a pre-annuity fund that invests a minimum of 92% in long-dated gilts but ha...
Canada Life has launched a pre-annuity fund that invests a minimum of 92% in long-dated gilts but has some exposure to the UK equity market.
The structure of the product is such that IFAs can switch clients into the fund at no cost. Unit allocation is 103% with a commission of 5.2%, allowing intermediaries to offer their clients a no cost transfer and still receive a 3% commission.
Linked to Mercury Asset Management's Pension Protector, the fund will initially feature 96% in long-dated gilts and 4% in equity/gilt outperformance options.
If the value of the options reaches 8% of the fund value then they would be encashed and used to buy further gilt investments.
Slow progress in improving diversity
Share purchase deal with assets of £28m
Came into effect in January
Three examples of compensation rule issues
Buying in baskets