The firm today unveiled two single premium unit-linked bonds, both of which have been available on the UK mainland since 2009.
Guaranteed Investment Bond offers a choice of capital, withdrawal and death benefit guarantees. It has a minimum investment of £10,000 and terms ranging from eight to 20 years. Investors can withdraw up to 5% of their initial investment each year, at no charge.
Income for Life Bond aims to offer “a secure income for life”, Metlife said, in addition to the option of locking in investment gains and securing death benefits. Investors take income by making withdrawals monthly, quarterly, every four months, every six months or annually.
Both bonds can lock in gains every two-and-a-half years, or up to 10% each year, and are “guaranteed to maintain at least their initial investment minus any withdrawals”, said the firm.
Clients opting for guarantees on the bonds will invest their money in portfolios managed with the assistance of Morningstar Associates Europe, an independent research company. Clients who do not choose the “secure capital feature” can invest in the standard Metlife Investment Bond.
Annual management and guarantee charges on the bonds start from 0.6% and 0.4% respectively. The maximum initial commission is 6% of the premium, while trail can be as high as 1%.
Metlife Europe, an affiliate of US-based insurer Metlife, provides financial products into Jersey from Ireland. As International Adviser reported last month, Paul Frankland has been appointed to head the company’s expansion in Jersey.
