Zurich has launched a Distribution fund via its Sterling Bond wrapper, investing in a mix of high-yielding equities, gilts and property.
The fund is aimed at moderately cautious investors and the asset mix is reviewed daily. Income is payable monthly, although investors have the option to switch off the regular withdrawal facility at any time.
There is a minimum switching and new investment amount of &5,000 and top-ups should be at least &1,000. Investors are allowed limitless free switches into any of the 120-plus funds in the bond.
Overall, the Sterling Bond has three charging structures, high allocation, no-exit penalty and standard terms. Commission is 7% initial or 4.25% upfront and 0.5% trail on the standard and high allocation options, rising to 7.25% initial on the no-exit charge version.
The allocation rate for investments of &5,000 to &24,999 is 102.25% in the standard charging structure, rising to 105.25% for investments over &100,000. On the no-exit penalty option, the allocation rate for &5,000 to &24,999 is 101% and 102% for over &25,000. This structure has a loyalty bonus of 1% of the plan value after five years and 1.5% after 10.
The high allocation structure gives 105.25% for &5,000 to &24,000 and goes up to as much as 107.75% for over &100,000.
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances