Standard Life International has improved its International Bond to provide a wider investment choice...
Standard Life International has improved its International Bond to provide a wider investment choice, following the launch of its initial offering last year.
Murray Drummond, chief executive of Standard Life International in Dublin, said although Standard Life had come to the market relatively late with its International Bond, it meant it was able to offer something different.
He said the aim was to develop a bond that was easy to explain to clients, and easy to understand.
The bond is a whole-of-life, lump sum payment, non-qualifying investment-linked contract. It provides access to insured funds, mutual funds, whole-of-market funds, discretionary fund manager and deposit accounts. Previously, investors had the choice of three investment options.
But Drummond said what made it unique was its simplicity and good value, especially in relation to charges for the insured funds and mutual funds.
Those who choose a mutual fund only pay a retail annual management charge (AMC), while those who choose an insured fund pay either the retail AMC or less.
Drummond said: "The net effect is it's good value but also easy to understand in that investors know what they are paying for."
The minimum investment for insured funds, mutual funds and deposit accounts is £20,000, which Drummond said made it appealing to a wide audience. For the Discounted Gift Plan, the minimum investment is £60,000, while for investments via discretionary fund managers and whole-of-market funds, it is £100,000.
Standard Life International is offering a number of commission options to IFAs, including initial commission, fund-based commission and funded initial commission.
The launch of the enhanced International Bond came as Standard Life International was chosen to provide a new offshore bond wrapper for the Fidelity FundsNetwork platform.
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