Among other advantages, the new Dynamic Duo Savings option will offer investors “exceptionally low” charges, the two companies say.
The Dynamic Duo option was unveiled by the two companies this morning in London.
Those familiar with SCM will not be surprised by the low charges feature, as the company, an exchange-traded fund specialist, is one of the main backers of the True & Fair Campaign. This UK-focussed effort seeks to encourage greater transparency with respect to fund management fees, as well as to promote charging structures that align the interests of investors and their asset managers better than some say has traditionally been the case.
DIY investment strategy blending
Stephen Whyburd, La Mondiale’s London-based representative, said that what makes the Dynamic Duo offering attractive to investors is that it enables them to invest in La Mondiale’s popular Sterling Guaranteed Fund, while at the same time having the option of adding, when and as desired, exposure to SCM’s “innovative and low-cost way of accessing the markets”.
In other words, Whyburd explained, they may keep 100% of their investment in La Mondiale’s Sterling Guaranteed Fund, or 100% in SCM’s (flagship) Absolute Return Portfolio, or create “a mix of the two”, based on their individual appetite for risk and market exposure.
Investors may switch between the two strategies once annually without incurring a charge.
Both options also come free of any initial charges. In the case of the La Mondiale Guaranteed Fund, that would normally be up to half a percent of the initial investment, Whyburd noted.
In offering the new investment option to its clients, in addition to its flexibility, Whyburd said La Mondiale intends to highlight cross-border compliance of its core bond product, which in fact goes by the Bond 4 European Mobility name. Its mobility is rooted in AGR2 La Mondiale’s size and international presence, particularly within Europe.
Timely
The Dynamic Duo feature comes as other life companies are also understood to be looking to offer more choice in the types of investments they offer within their bond wrappers, in addition to lower costs, in response to the UK’s RDR regulations. These regulations, which took effect on 1 Jan, have focussed investor and adviser attention on the layers of charges many such bonds have traditionally featured.
La Mondiale Europartner is the Luxembourg-based international division of Paris-based AG2R La Mondiale. As reported, the company announced earlier this month that it is to buy another Luxembourg-based life company, MassMutual Europe, with the intention of merging its business into La Mondiale Europartner. The deal, which is subject to regulatory approvals, will create a business with combined assets of more than €7bn, AGR2 La Mondiale said.
SCM Private was founded in 2009 by Alan and Gina Miller, a husband-and-wife team whose previous experiences included New Star Asset management and, in his case, Gartmore and Jupiter.
To read a profile of La Mondiale Europartner, click here.
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Dynamic Duo Savings and |
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Type of product |
Investment option for use within the La Mondiale Bond 4 European Mobility |
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Target client |
UK citizens and other UK residents, regardless of citizenship |
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Date of launch |
May 2013 |
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Policy currency |
Sterling only |
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Minimum investment |
£100,000 |
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Minimum add’l investment |
£10,000 (or currency equiv) |
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Minimum regular withdrawal/ single withdrawal |
£5,000 (or currency equiv), providing £5,000 remains in each segment |
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Initial charges for Dynamic Bond Wrapper |
none |
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Compliance |
Complies with UK Offshore Bond rules, and will remain locally compliant should clients move between France, Spain, Italy, Portugal, Luxembourg, Belgium and the UK |
