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F&C unveils capital protected RDR share class
by Emma Dunkley on Jan 08, 2013 at 08:28
The new D share class is designed to protect against a capital shortfall of up to £150,000 in the event of death.
If an investor puts away £1 million as an initial investment and this falls to £870,000 at the investor’s death, for example, the investor would gain a £130,000 shortfall payment to the estate.
F&C said investors up to the age of 79 can buy the D share class on a ‘whole of life’ basis, for an annual management charge of 0.75% on the Lifestyle range and 1% for the Thames River Distribution fund.
This charge is 0.25% higher than the respective funds’ standard B and C share classes.
John Yule, head of UK retail at the firm said: ‘Our research of market rates for "whole of life" cover suggests the cost of this additional protection represents good value for money for investors across a range of age and investment size profiles.’
‘We believe this cover is suited to a number of financial planning situations, and offers those investors who may require exposure to risk assets - such as equities and corporate bonds - the peace of mind that the original sum is protected for their family in the event of their death.’
The protected share class is available on the four funds in the Lifestyle range, comprising F&C Lifestyle Defensive, F&C Lifestyle Cautious, F&C Lifestyle Balance and F&C Lifestyle Growth.
It is also offered on the Thames River Distribution fund, Thames River Cautious Managed and Thames River Global Boutiques funds.
F&C added cover is adjusted if any capital withdrawals are made during the term of the investment, and will remain unaffected by any dividends paid by the fund.
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by Michelle Abrego on Mar 11, 2014 at 10:45