A number of highly rated funds have also been added to Nationwide's existing fund platform to extend the choice available and enable customers to build income or growth investment portfolios.
Customers can invest in any of the funds available through Nationwide through a Unit Trust, Open Ended Investment Company (OEIC) or within a tax-efficient Individual Savings Account (ISA) or within the new Portfolio Bond.
From 6 October 2009, customers aged 50 on or before 5 April 2010 will have an ISA allowance of £10,200, an increase of £3,000, of which up to £5,100 can be saved in a cash ISA and the remaining balance or the full £10,200 allowance in a stocks and shares ISA.
Nationwide's director of insurance and investments, Robin Bailey, said:
"In a low interest rate environment, Nationwide is acutely aware of the need to offer a range of investment products that are capable of generating additional income for our investors. Our Senior Financial Consultants are on hand to help customers make the choice they believe is right for them and appropriate to their individual circumstance, when selecting an investment portfolio for income or for growth.
"We believe that the Legal and General Portfolio Bond is good news for those customers who are looking for regular a withdrawal to provide them with a fixed level of income from their investments, whilst the new leading funds we have added to our platform offer more choice to customers."
Legal and General Portfolio Bond:
- A regular withdrawal can be taken monthly, quarterly, six monthly or annually to provide a fixed level of income.
- No fixed term, though customers should aim to invest for at least five years.
- Minimum investment of £5,000, with at least £1,000 in each fund. There is no maximum investment.
- A range of 21 investment funds available, offering access to a range of leading fund managers.
- The ability to invest in different assets and a choice of different investment approaches from low to high risk.
- Flexibility to meet changing investment needs. Customers can increase their plan by investing up to five further lump sums of at least £5,000, with at least £1,000 in each fund available at the time.
The Legal and General Portfolio Bond is exclusively available through Nationwide's Senior Financial Consultants (SFCs).
Some of the Legal and General Portfolio Bond's additional investment funds:
To increase the choice of leading funds available, Nationwide is also introducing three new investment funds through the Society's distribution deal with Legal and General. The new additions to the range are as follows:
- MandG High Yield Corporate Bond Fund (medium risk)
Morningstar fund rating:
- The objective of this fund is to maximise total return (the combination of income and growth of capital) while generating a high level of income.
- Newton Global Higher Income Fund (medium risk)
Morningstar fund rating:
- This fund aims to achieve increasing distributions on a calendar year basis with long-term capital growth. It may also invest in collective investment schemes.
- Legal and General First State Global Emerging Markets Leaders Fund (high risk)
Morningstar fund rating:
- This fund aims to achieve long term capital growth. The fund invests in large and mid capitalisation equities in emerging economies, including those companies listed on developed market exchanges whose activities predominantly take place in emerging market countries.
