Sun Life International has launched an International With-Profits Bond domiciled in the Isle of Man...
Sun Life International has launched an International With-Profits Bond domiciled in the Isle of Man.
It will invest 92% in equities and 8% in property. The bond is designed to provide income or capital, or both, and is designed as a medium to long term investment. Its aim is to offer returns that smooth out variations in investment markets.
The returns from investing in stocks, shares, property and other assets vary from year to year, but the theory of the with-profits concept means reserves built up in good years compensate for times when returns are low.
The product will be the first to benefit from Sun Life International's new electronic quotation facility which allows intermediaries to obtain full quotations via the internet.
The International With-Profits Bond may be denominated and invested in sterling, dollars or euros. The regular bonus rate is 6.5% for sterling and the bonus rate for US dollar and euro investments is currently 6%.
A loyalty bonus of 0.5% of the value of the investment may be payable from the end of the sixth year and annually thereafter.
A terminal bonus may be added at surrender or on death, although cannot be guaranteed and is more likely to be paid the longer the investor has held the bond. Minimum initial investment is £25,000 with optional investment top ups of at least £5,000.
Establishment charge is 1% per annum. Standard commission is 5.2% with the option of initial and renewal commission. Where initial commission is foregone the level of allocation rate will increase. This will be at a rate of 1% for every 1% commission given up.
Brexit uncertainty a major factor
Highlights of group's 2018 Analyst Survey
Market smelt blood
Four days to go …
Improving portfolio diversification