Guaranteed Investment Bonds

digger3_2

Hi Meester.Co-funds is listed on the front page of the premier website,as well as 3 others.I've already got stuff with co-funds which is why I mentioned them.I'll check the T&C's. Digger

darren72

It would seem that depending on who you take this out through, you may get a small discount (around 2%).

meester

digger3 wrote: »

Hi Meester.Co-funds is listed on the front page of the premier website,as well as 3 others.I've already got stuff with co-funds which is why I mentioned them.I'll check the T&C's. Digger

I would think that would be because of Premier's OEICs, which of course Co-funds will sell. This Bond is a totally different product that wouldn't be sold in a fund supermarket environment.

meester

darren72 wrote: »

It would seem that depending on who you take this out through, you may get a small discount (around 2%).

You sure?

Premier's OEICs might be discounted, but this product is subject to commission which is taken from your investment. If you invest directly the charge is zero so there is no discount possible.

darren72

meester wrote: »

You sure?

Premier's OEICs might be discounted, but this product is subject to commission which is taken from your investment. If you invest directly the charge is zero so there is no discount possible.

From what I can understand there is no commission, and a rebate is received - although I am waiting to hear back for confirmation (which I should on Monday).

Mikeyorks

darren72 wrote: »

From what I can understand there is no commission, and a rebate is received - although I am waiting to hear back for confirmation (which I should on Monday).

If you go direct ... so there's no commission / fee? How can there be a rebate? What would it be on?

Are you sure you're not confusing this with the 3% gross they will pay on cleared funds up to the start date of the product?

dunstonh

It is not really commision but an explicit charge that pays the adviser. So, if you put £100k and say 3% is chosen, then your investment is reduced by 3%.

There is no reason to take "commission" and get it rebated. Indeed, I believe that Premier wouldnt do this anyway as you need to have an FSA authorisation number to be able to receive "commission".

darren72

I checked this and they replied back saying:

"I can confirm that your initial investment will not be reduced by. The full amount is invested plus our discounted either as an improved share price or as just additional investment (ISA/NON-ISA)/"

I am asking for further confirmation, but doesn't this indicate that there is no commission deducted from my investment, but I would also receive the 'discount' on top ?

Thanks

Mikeyorks

darren72 wrote: »

The full amount is invested plus our discounted #### either as an improved share price or as just additional investment

I think you've missed a critical word / phrase out where I've inserted '####' ..... which might just give a much needed clue? If you've applied direct (and not via an IFA) then there won't be any commission payable. But equally if you're not paying any charges .... where would the rebate come from?

There is a (max) 2% management charge (already netted from the 16% pa prospective return) in their T&Cs. So I suppose they could rebate this to actual costs ... but nowhere does it imply that :-

17. Charges: The returns shown are net of all anticipated charges and expenses. These charges are estimated to be no more than 2% of your net investment, plus any commission payable to your authorised Financial Adviser as per clause 23

darren72

Mikeyorks wrote: »

I think you've missed a critical word / phrase out where I've inserted '####' ..... which might just give a much needed clue?

That was copied and pasted directly from their e-mail.

I have actually e-mailed two separate companies and got pretty much the same reply. Again though, I am asking them both to confirm.

Thanks