Investors in Norwich Union's unfettered funds of funds are exposed to double tax

The group's unfettered Fofs range was launched on 11 October and are run by IMS and are Luxembourg-domiciled. As a result, the dividends paid by the underlying funds are therefore subject to tax at the Sicav level and the life fund level. Three Fofs - the NU Balanced, NU Cautious and NU Growth funds - are available through onshore and offshore bonds and non-stakeholder pensions but only the onshore bonds are liable to both types of taxation. Richard Kelsall, head of product development at Norwich Union believes the impact of the double taxation will be small. "Our Fofs are growth...