Scottish Life International offers a simplified charging structure
Wednesday, 21 February 2007
Scottish Life International is targeting fee-based advisers by creating a new charging structure for their safe combination® bond.
Designed to offer a transparent investment option for the adviser and investor alike, the new structure allows for 100% allocation with no establishment charge or surrender penalty, and pays the IFA 0.2% renewal commission.
Scottish Life International's Head of UK Sales, Alan Blackburne commented:
"We are finding that more and more advisers are taking a fee from the investor rather than an initial commission from the product provider. This has encouraged us to put together this clean charging structure which has been well received and enhances our standing in the UK offshore market.
"The safe combination® bond is particularly suited to the fee-based approach, with the investor safe in the knowledge that their initial capital is 100% protected from day one and won't be eroded by any form of charges. Furthermore, the client is free to access their investment on a quarterly basis without penalty."
Alan added, "A-Day rules now allow Self Invested Personal Pensions (SIPPs) to invest in Isle of Man life assurance bonds, just like safe combination®. We feel that the protection safe combination® provides, coupled with proven returns potential, is ideally suited to the SIPP market. Our innovative charging structure can only help to strengthen this position and add to the demand for this type of product."
- ENDS –
for further information please contact:
pressoffice@sli.co.im / 0131 456 6031 or
Scottish Life International
Alan Blackburne
Head of UK Sales
Tel: 01296 660 980
Mobile: 07919 171 604
alan.blackburne@sli.co.im
Editors Notes:
Safe combination® is a single premium bond offering links to Scottish Life International's range of capital protected funds.
The additional structure allows for 100% allocation with no initial charge, and pays the IFA 0.2% renewal commission. The minimum investment for a SIPP investment is £50,000 and for non-SIPP investors, it is £100,000.
Combined with our flagship Protected Deposit Bonus funds this product has returned 60.25% over the last five years assuming 20% lock-ins.
Discrete five-year returns:
12/01 - 12/02 0.07%
12/02 - 12/03 9.46%
12/03 - 12/04 11.35%
12/04 - 12/05 20.22%
12/05 - 12/06 9.28%
Source: Scottish Life International, based in sterling to 08/12/06 assuming investments in safe combination® using the protected deposit bonus range of funds and 20% lock-in levels.
You should note that past performance is not a guide to the future and should not be used to assess the risk profile of safe combination® system or the underlying funds. The value of the investment can fall as well as rise.
The investment growth and capital protection is provided by a range of highly rated and financially strong institutions and not by Scottish Life International itself. If any of these financial institutions with whom the money is invested were to default on their obligations, the protection and growth potential of the fund would be at risk.
Scottish Life International Insurance Company Limited was launched in 1996 and is now part of the Royal London Group. The company has grown rapidly in size and now has funds under management in excess of £730 million from investors in the UK and around the world (as at 31 December 2006). Scottish Life International Company Limited is based in the Isle of Man, where it is supervised by the Isle of Man Government Insurance and Pensions Authority.
Scottish Life International Insurance Company Limited is a member of the Association of International Life Offices (AILO) and sponsors IFA Promotion (IFAP), supporting the need for independent financial advice.
Holders of policies issued by Scottish Life International Insurance Company Limited, based in the Isle of Man, will not be protected by the UK Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them. Policyholders will however be protected by the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991.
Please note neither safe combination® nor the funds are bank or building society accounts and should not be treated as such, as investments made through safe combination® are accessible on a quarterly basis only.
The Scottish Life International protected range of funds include a 1.25% annual fund management fee which has already been taken into account and does not affect the protected amount.
Royal London Group is a specialist financial service provider. Its businesses focus
on those sectors of the market which value premium propositions, operating through
a number of brands:
• Scottish Life - UK pensions market
• Bright Grey - UK protection market
• Scottish Life International - offshore investment markets
• RLAM - fund management
• RLAS - life and pensions administration
Royal London is one of the stronger life and pension companies in the UK, with a current rating of 7/10 from Cazalet Financial Consulting, and has a particularly strong track record for with profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £30.8 billion. Group businesses serve over three million customers and employ 2,640 people. (Figures quoted are as at 31 December 2006.)
Issued by Scottish Life International Investment Group Limited, a Royal London company which is authorised and regulated by the Financial Services Authority. Registered in Scotland number 166387. Registered office: 19 St Andrew Square, Edinburgh EH2 1YE.