Shepherds initiative on with-profits

Traded endowment provider Shepherds Group has launched a service allowing investors to take income f...

Traded endowment provider Shepherds Group has launched a service allowing investors to take income from underperforming with-profit bonds without eroding capital. Under the converter option, investors use their bond as collateral for investment in a personal traded endowment policy (Tep) portfolio run by Shepherds, from which they can draw tax-free income. Shepherds has negotiated a deal with the Bank of Scotland to lend against the bond. The Bank of Scotland will lend up 65% of the bond's surrender value for investment in the Tep portfolio, with a minimum investment of £50,000 providing...