Fidelity FundsNetwork claims to have broken new ground with the first truly open architecture bond, ...
Fidelity FundsNetwork claims to have broken new ground with the first truly open architecture bond, which provides access to over 1,000 mutual funds.
Advisers have welcomed the introduction of the bond, which will give them access to funds from 55 providers, as well as discretionary fund managers and deposit accounts.
FundsNetwork said the bond was designed to be competitively priced, with a clear and simple charging structure and full commission flexibility. In addition, the wrapper is integrated into the platform's online client management tools and services.
David Dalton-Brown, head of FundsNetwork, said the launch of the bond was the result of demand from advisers. He said: "The combination of lower and transparent charges, investment choice and flexibility is geared towards making offshore investment more accessible than ever before."
James Brooke, financial architect at IFA firm Anand Associates, said the drive towards clarity and transparency was attractive. He added that although offshore bonds had a tendency to be overpriced, this international bond had "a very fair and competitive fee structure".
Paul Banfield, broadcast and media consultant at Best Advice Financial Planning, said he was impressed with the move towards transparency and thought it would encourage interest in the bond.KEY featureslOver 1,000 mutual funds choices
lAccess to deposit accounts and discretionary fund managers
lCharges may apply for funds not on FundsNetwork Platform
lRegular income options - up to 7.5% withdrawal per annum with no charges
lCommission options include nil commission for fee-based advisers, initial commission, fund based renewal commission and fund initial commission
lMinimum £100,000 lump sum initial investment
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances