plan allows for investment in up to 10 of 109 funds in mirror range
Friends Provident International (FPI) is to target what it calls ultra high net worth savers with an offshore regular premium savings plan, Premier Ultra.
The plan will be available to investors in the Middle East, Hong Kong, Taiwan and South America, and can invest in up to 10 of the 109 funds within the FPI mirror range. There will be no charges imposed when investors switch between funds.
The minimum investment is $1,500 a month with the option of paying monthly, quarterly, half-yearly or yearly premiums into the plan. As well as dollars, Premier Ultra is also available in sterling, Hong Kong dollars and euros. Single premium payments, the minimum of which is $3,000 or the currency equivalent, can be made into an existing plan at any time.
Additional life cover is available for investors, either on a single or joint life basis.
Premium Protection Cover is also available to offer security against unexpected circumstances, ensuring against eventualities in which premiums cannot be paid.
Withdrawals will come at no extra cost and can be taken irregularly or to a fixed schedule. The minimum withdrawal will be $750 per plan and can be taken while premiums are being paid.
Investors will receive extra allocations into Premier Ultra for the first 18-months but the amount will vary according to how long they will retain the plan. For example, if the investor wants to hold Premier Ultra for 25 years then they receive an extra 50% allocation, whereas a five-year term will receive an extra 10% allocation.
The annual management charge on the product will be 6% for the first 18 months but after this will reduce to 1.2%.
The targeting of ultra high net worth clients is the latest in a series of initiatives by FPI to increase sales and comes after the insurer reported a growth in new business of 24.9% in the first half of 2005 to reach £45m.
In September, FPI teamed up with fund supermarket Selestia to try to increase new business from the UK. The agreement offers access to Selestia's platform via FPI's Isle of Man portfolio bond, Reserve. Selestia gives FPI investors a choice of 700 funds from 57 asset managers and its asset allocation tool.
FPI's Luxembourg-based subsidiary Lombard International grew new business by 10.8% in the first six months of the year. The firm has developed a new product range for the German market and is seeking to expand its sales in Mexico and Asia by distributing via private banks.
Regular savings plan for ultra high net worth investors based in the Middle East, Hong Kong, Taiwan and South America.
The minimum investment is $1,500 a month.
There is a selection of 109 mirror funds available.
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets
Appetite has suffered since Brexit vote
'Failure to pay attention can result in enforcement'