Launch Pad: Investment bond

Nick Harding, propositions and marketing director of wealth management for Canada Life, said the CanInvest Select Account was designed to capitalise on market potential he believed still existed among advisers, despite a dip in the market post-RDR. He added: “Onshore bonds are an attractive proposition for a wide range of customers.”

The bond includes a loyalty bonus for long-term investors of 0.5 per cent, added every fifth anniversary. Some 140 funds are available within the bond. Yearly withdrawals of 5 per cent are permitted without an immediate tax liability.

Product charges:

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Fund valueCharge deducted monthly
First £25,0000.60%
Between £25,000 and £40,0000.40%
Between £40,000 and £100,0000.35%
Between £100,000 and £250,0000.32%
Above £250,0000.30%

IFA Verdict:

Aleks Slipaczek, paraplanner for north London-based IFA Filip Slipaczek, said: “We use a few onshore bonds, but haven’t used Canada Life as it has generally been seen as a direct provider. If we were to recommend this we would need to see a long-term commitment from Canada Life to the intermediary market.”