Scottish Equitable has increased its allocation rates for investments of £50,000 and above into its ...
Scottish Equitable has increased its allocation rates for investments of £50,000 and above into its investment bonds, writes Simon Falush.
The group has also extended the range of funds in which bonds can be invested in a bid to increase market share and offer more flexibility to investors.
Scottish Equitable is moving its allocation rate from 102% to 103% for the initial charge contract, wherein the fee is paid from the bond up front, on investment bonds for sums between £50,000 and £99,999. The allocation rate for investments of more than £100,000 in bonds charged on this structure will increase from 102% to 105%.
The annual management charge contract on the bonds will see the allocation rate increase to 102% from 101% for those investing between £50,000 to £99,000 and will increase to 104% from 101% for those investing more than £100,000.
Scottish Equitable's investment bonds have been modified to allow investors to split the enhanced allocation rate between different internal life funds and links to funds from other providers.
Investors will be able to shift money between managed funds from Baillie Gifford, Newton, SG Asset Management, Merrill Lynch, Deutsche and a managed fund of these funds called the Scottish Equitable External Balance Collection.
Scott White, PR manager at the group, said: 'This will allow investors to benefit from better rates while having the benefit of diversifying their portfolio in a number of different funds.
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