CanInvest Select Account designed with transparency and flexibility in mind
Canada Life is launching a new onshore bond product – the CanInvest Select Account – to capitalise on the market potential it believes exists, demonstrated by the continued interest they see from advisers.
While the onshore bond market has seen a dip post-RDR, adviser research for Canada Life found 60% think onshore bonds remain as valid as they were pre-RDR. According to the survey, the most important elements when considering onshore bonds are product charges (70%) followed by fund choice (66%) and financial strength of the provider (31%).1
The CanInvest Select Account is tax effective and offers transparency and value for money. It has no entry or exit charges, with the fees limited to a tiered monthly management charge (where the greater the value of the client’s investments the lower the percentage) and separate fund charges. This transparent approach is designed to appeal to advisers, with two thirds of those surveyed indicating a preference for product charges and fund charges to be shown separately
To reward longer term investors, a loyalty bonus is added to the CanInvest Select Account every five years.
Onshore bonds meet the needs of a wide range of investors. This includes those who expect to be paying a lower level of tax when they ultimately take money out of their investment, or whose choice of underlying investment funds makes the bond the most tax effective vehicle when compared to the alternatives. Annual withdrawals of 5% are available without an immediate tax liability arising and for many advisers bonds are the product of choice when it comes to estate planning which involves the use of trusts.
A carefully selected range of high quality fund choices is available which covers a broad spectrum of asset types and geographies, from single strategy funds to risk profiled multi-asset solutions. The range includes funds managed by the award winning Canada Life Investments team with others managed by some of the biggest and most respected investment companies around the world. This includes exclusive links to Canada Life Investments Global Partner Series2 funds provided by sister companies, Putnam, GLC, Mackenzie and Setanta.
Nick Harding, Propositions and Marketing Director, Wealth Management at Canada Life said:
“We are firm believers in the role onshore bonds have to play in a professional adviser’s armoury. Onshore bonds are an attractive proposition for a wide range of customers, from those for whom a bond offers the most tax efficient vehicle for their particular circumstances to others who are looking for a straightforward investment solution.
“In developing our new CanInvest Select Account we have listened to what advisers see as most important and have designed a product that will work for them and for their customers. The Select Account offers transparency, flexibility, value-for-money and a wide range of adviser charging options. This is all backed by our commitment to supporting advisers through our acclaimed ican Technical Support and high quality service.”