Friends Provident International (FPI) has added three further funds to its German pension product.
Policyholders of the Friends Plan, a fund-linked pension insurance plan, will be able to access three DJE Managed Depot funds from DJE Kapital AG, in addition to the 160 funds currently available.
The core investment is an umbrella fund with growth, income and risk options. To broaden diversification and distribute the risk, further target funds are incorporated into each strategy.
DJE Managed Depot funds follow the capital market guarantee model, safeguarding total premiums paid. This operates in a similar way to variable annuities in the US, where policyholders have the option of securing the guaranteed return of premiums by paying an additional transparent fee of 5% of each premium payment.
Since the guarantee is not related to a specific fund, customers have the freedom to invest in the funds of their choice, said FPI.
Stefan Giesecke, managing director of Financial Partners Business AG, the appointed distribution partner for FPI, said working with one of the best-known fund managers in Germany and taking their funds on board has ‘significantly enhanced’ the Friends Plan products.
“We can offer investors a well-selected investment portfolio including a managed funds option. In view of the very complex diversity of investments, these funds offer sound objectives whilst at the same time all the possibilities of the financial markets,” Giesecke added.
The DJE Managed Depot funds’ income option has a maximum equity percentage of 35% and a one to three-year minimum investment holding period. The growth fund has a maximum equity percentage of 65% with a minimum investment holding of three to five years.
With up to 100% equity exposure, the risk fund has an investment holding of over five years. From launch on 1 September 2006 to 1 October 2008 it was down 5.27%, compared with a fall of 20.7% in its benchmark, the MSCI World index.
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