Scottish Equitable International has confirmed the exact details of the offshore with-profits bond t...
Scottish Equitable International has confirmed the exact details of the offshore with-profits bond to be launched in the first quarter 2003.
Domiciled in Dublin, the product will be an offshore version of its onshore 'next generation' with-profits fund.
The company originally planned to launch an offshore with-profits bond last year, but the move was put on hold following the events of 11 September.
In addition, it was thought the impact of depolarisation as well as the Sandler Review in the UK, might have an impact on the offshore with-profits market.
However, Scottish Equitable International thinks the new product addresses the issues raised by Sandler and the UK regulator's with-profits review.
Scottish Equitable's next generation funds are unitised, smoothed funds, designed to reduce short-term volatility without compromising the long-term growth potential. They do not offer guarantees or bonuses, rather they have a transparent, smoothed structure that has been designed to avoid criticism, including a lack of transparency.
The launch will consist of two new funds ' the With-Profits Growth fund and the With-Profits Cautious fund. Both are to be Dublin domiciled and will be available through the Investment Portfolio.
The With-Profits Growth fund is designed for long-term growth and has a high equity content.
The With-Profits Cautious fund has a higher fixed interest allocation and is designed for income or growth for the more cautious investor.
The new funds are ring-fenced with 100% of all growth generated benefiting the policyholders.
Minimum investment is £15,000 and the annual management charge is 1%.
In a separate move, Scottish Equitable International has launched 'smart links' to help intermediaries choose funds to meet their client's risk choices.
Q2 net sales dropped almost 50%
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected