NPI has launched a with-profit portfolio bond paying a headline rate of 7.5% in the first year on in...
NPI has launched a with-profit portfolio bond paying a headline rate of 7.5% in the first year on investments of more than £25,000.
The 7.5% yield on the NPI Portfolio Bond II product comprises a 5% annual bonus rate and an additional 2.5% at the end of the first year. For investments between the minimum £10,000 and £24,999 the first year's extra bonus is 1%. Long term investors will be rewarded an additional 2% loyalty bonus every five years.
Within the product there are 16 funds to choose from and investors can invest either in one fund or spread their investments over a range of portfolios. The options are 15 unit-linked funds, including NPI's Protected Equity Growth and Global Care funds, and a unitised With-Profits option, reassured with the Pearl Assurance With-Profit fund. The Pearl fund has an equity backing ratio of 76% and a free asset ratio of 16%. Investments can be switched between any of the unit-linked funds at any time on a bid to bid basis. Switches can also be made on the same basis into the with-profit fund at any time. The first switch each policy year is free and if not used in one year, can be carried forward to the next Subsequent switches cost £15 each.
The bond fee is 1%pa with the annual management charge on the unit linked investments being either 1% or 1.25%. Initial commission to IFAs is 5.25%. As a result of the group taking steps to guard against applying MVAs its current policy is to allow withdrawals of up to £30,000, in any period of 12 consecutive months, to be made without the application of an MVA.
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