more flexible charging structure is to accommodate more intermediaries
Prudential International has revamped the charging structure on its Prudence Portfolio Bond giving intermediaries the choice of whether to take initial commission.
Richard Leeson, international relationship manager at Prudential, said as more and more intermediaries are charging clients a fee for their services this flexible remuneration structure will be able to accommodate them.
It also allows their clients to be 100% invested in the product, if they choose to be. The, until now, mandatory demand for 5% of the investment to be kept on sterling deposit has been removed and replaced with a cash account facility. Trail fees of 0.25% or 0.5% have also now become negotiable.
The Prudence Portfolio Bond is a single payment unit-linked whole-of-life bond and its main target audience is individuals as well as trustees. It allows investment links to more than 200 fund management groups including a wide variety of investments such as unit and investment trusts, Oeics and Sicavs. The minimum investment is £50,000. It is Dublin domiciled.
For intermediaries with corporate clients who would like to invest in the Prudence Portfolio Bond Capital Redemption Option an initial commission option has been added.
The existing right to take 0.25% commission remains out of an annual fee of up to 0.7%. Now the group has added in the option to take up to 1.25% initial and no renewal. The minimum investment for this product remains at £100,000. Prudential is also seeing more intermediaries using stock broking firms and private banks to manage clients' assets.
Leeson said: "Intermediaries are now wary of managing clients assets as they are concerned they could become liable if they loose money. They are now handing this responsibility to stock brokers and private banks and acting more as a go between."
According to Leeson, Prudential hopes to tap into this market via tie-ups with stock brokers and private banks. It is looking to move custodianship of the assets to those that are actively managing the money, said Leeson.
Flexible charging structure for Prudence Portfolio bond.
Intermediaries can now choose if they wish to take initial commission.
Prudential plan to do tie-ups with stock broking and private banks.
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