F&C Investments has launched the first capital protected RDR-compliant share class in the UK for its Lifestyle range and other multi-manager funds run by Gary Potter and Rob Burdett.
F&C Investments has launched the first capital protected RDR-compliant share class in the UK for its Lifestyle range and other multi-manager funds run by Gary Potter and Rob Burdett.
The ‘D’ clean share class is designed to protect an investor’s original investment against a shortfall of up to £150,000 at death.
For example, an investor who originally invested £1m, but whose investment value had fallen to £870,000 on their death, would receive a £130,000 shortfall payment to their estate.
The protected share class will be offered on the four funds in the £400m F&C multi-manager Lifestyle range, its flagship £662m Thames River Distribution fund, as well as Thames River Cautious Managed and Thames River Global Boutiques.
Investors up to the age of 79 are able to buy the protected share class on a whole of life basis, with no medical underwriting required.
The ‘D’ share class has been priced at an AMC of 0.75% for the Lifestyle range and 1% for the Distribution fund and other multi-manager funds. This is 0.25% higher than the funds’ corresponding standard B and C class shares.
John Yule, head of UK retail at F&C, said the new share class will benefit clients who are looking to consolidate investments into one vehicle.
“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,” he said.
“We expect to see particular interest from those clients who have invested in various ISAs over the years and are looking to consolidate them into one fund as their capital can be protected for the benefit of their dependants via one vehicle.”
Yule added he also expects the share class to prove popular in the trustee market.
“The regular income generated by the Thames River Distribution fund combined with capital protection will be attractive to trustees of interest in possession trusts,” he added.
This article was first published on Investment Week
