Foreign & Colonial has finally been given full FSA approval for its new With Prospects fund, and a t...
Foreign & Colonial has finally been given full FSA approval for its new With Prospects fund, and a three week offer period will commence on 26 November 2001.
The fund, as first reported in Investment Week in August, is to be modelled along the lines of a With Profits fund, but will be structured as an Oeic, enabling it to gain tax-efficient status through an Isa wrapper.
Philip Childs, director & head of UK retail at Foreign & Colonial, said because the group was utilising a concept that everyone is sensitive about, it took a lot of work with the FSA, especially in regards to getting all the wording for the fund correct, before the launch could take place.
The fund is aimed at investors requiring long-term growth but can also be used by those looking to make regular tax-free withdrawals. Any withdrawals can be taken against the individual's annual CGT allowance for those investing outside of an Isa. As such it effectively allows for a tax free income.
The fund is open for maxi Isa investments or via a Pep transfer or a direct fund investment. The front-end charge will be 5%, of which the intermediary will get 4% commission. The annual management fee is 1%. Minimum investment is £2,500 and maximum investment will be £7,000 through an Isa, with no maximum for Oeic investments or Pep transfers.
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