F&C has added a life cover option to its RDR-ready Lifestyle fund range and Thames River Distribution Fund.
The new share class aims to provide protection against capital shortfall in the event of death and protect an investor's original investment against a shortfall of up to £150,000 at death. It will be managed by F&C multi-manager co-heads Rob Burdett and Gary Potter.
Investors up to age of 79 will be able to buy into the protected share class on a whole of life basis with no medical underwriting required.
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The annual management charge for the share class is 0.75 per cent for the Lifestyle range and one per cent for the Thames River Distribution Fund.
John Yule, head of UK retail at F&C, said: "We expect to see particular interest from those clients who have invested in various Isas over the years and are looking to consolidate them into one fund as their capital can be protected for the benefit of their dependants via one vehicle.
"We also foresee specific uses within the trustee marketplace where, for example, the regular income generated by the Thames River Distribution Fund combined with capital protection will be attractive to trustees of interest in possession trusts."
F&C is in talks with several platforms to make the share class available to advisers.

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