Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a649180

F&C unveils capital protected RDR share class

by Emma Dunkley on Jan 08, 2013 at 08:00

F&C unveils capital protected RDR share class

F&C has launched a capital protected, retail distribution review-ready share class across its Lifestyle range and flagship Thames River Distribution fund .

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.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Thames River Distribution A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet