Scottish Friendly opens up ISA market to thousands

Press release - 18th September 2013

Scottish Friendly, one of the UK’s leading mutual life organisations, has today, 18 September, launched a new ISA which opens the world of stocks and shares, or investment, ISAs to thousands of investors due to its accessibility through affordable investments, a choice of three funds and, uniquely, allows investors to set up individual ‘pots’ for their payments that can be earmarked for particular goals.

My Funds Options (ISA) from Scottish Friendly allows investments from just £10 to £50 a month. An investor who, for instance pays in £30 a month could split their investment into three ‘pots’: a £10 a month pot for each of the investor’s two children and another £10 a month pot for a future special family holiday, for example.

Neil Lovatt, Scottish Friendly’s sales and marketing director said: “Scottish Friendly has applied its wrap technology to develop this exciting new ISA for ordinary people. We believe the opportunity for investors to direct their ISA payments to separate ‘pots’ is a first for the industry.

“The low minimum investment amounts mean that it’s no longer just the wealthy and well-advised that can have access to investment ISAs and with an easy to understand choice of three funds, Scottish Friendly is set to make a big difference to everyone who wants to have more of a choice than just a Cash ISA and who want the means of making their investment decisions themselves.”

The My Fund Options (ISA) offers three funds, meaning consumers can choose funds that suit their personal attitude to investing.

  • Lower fund: mostly invests in safer cash, government and company bonds
  • Medium fund: invests across all the asset types, offering a balanced approach
  • Higher fund: mostly invests in stock market investments for a higher, but more volatile potential return.

Investors remain in complete control and can switch funds with ease. The investment is fully flexible and investors can stop, restart, raise or lower their payments.

The value of investments can rise as well as fall and the original investment amount is not guaranteed.

Tax treatment depends on individual circumstances and tax law may change in the future.

How does the investment work?

Money is invested in a My Options policy which will be held within a Scottish Friendly ISA which will then invest in one or more of any of the funds available. Investors will have access to their investment at all times.

Investors can have one cash ISA plus one investment ISA in each tax year. The maximum which can be invested in an investment ISA is £11,520 in the tax year 2013-2014 less any amount subscribed to a cash ISA with another ISA manager.


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