If you are an expat interested in investing and long-term financial planning, Friends Provident International Ltd may be a name that you have heard of.
An Isle of Man-based financial services company, Friends Provident was established in the UK and specializes in financial planning for private investors. It provides a wide range of services and products to expats all over the world, including those in Asia, Europe, and the Middle East.
This post will examine the business, the goods and services it provides, and whether you should buy them.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
Please be aware that this post is meant solely for informational purposes. We advise seeking the services of a financial advisor or consultant you can trust if you want to invest with Friends Provident or if you want to know if their products are suitable for you and your objectives.
Who are Friends Provident International?
Friends Provident has a strong financial foundation and has been an established business under International Financial Group Ltd (IFGL), which manages $23 billion in assets for 216,000 clients globally.
The business has created solutions that are both tax- and money-efficient and have the adaptability to alter as circumstances demand.
Why is Friends Provident located in the Isle of Man?
Situated between England and Ireland in the Irish Sea, the Crown dependent of Isle of Man enjoys considerable autonomy. It is independent of the EU and the UK and is governed by its own laws and taxation system.
The Isle of Man has a strong economy with steady development and high levels of wealth. In October 2020, Moody’s rated it Aa3 due to its robust institutions and resilient economy.
The island guarantees strict monitoring of its financial industry, which is governed by the Isle of Man Financial Services Authority.
The Isle of Man upholds its image as a reliable international financial hub dedicated to international standards and openness by putting a strong emphasis on client protection and regulatory improvement, including the adoption of a new Conduct of Business Code in 2019.
Friends Provident International Investment Strategies
Friends Provident provides a variety of investment options that combine active and passive management. By including social, governance, and environmental considerations into its choices, FPI also prioritizes ethical and sustainable investing.
How does Friends Provident protect its clients’ funds?
Friends Provident offers expats and local citizens in Europe, Southeast Asia, and the Middle East savings, investment, and protection products. The employees at FPI, which work in offices in Dubai, Hong Kong, Singapore, and the Isle of Man, are all trained to assist the company’s clients in achieving their financial objectives.
Clients benefit from security that the company’s location in the Isle of Man offers.
What products does Friends Provident International offer?
As part of IFGL, Friends Provident International provides investment, savings and protection solutions to international investors around the world.
The following advantages are offered by Friends Provident International’s access to funds: funds in a variety of currencies; a wide selection of funds that span all significant asset classes; and a suitable investment strategy for every investor type.
As an international provider, Friends Provident also allows its clients the ability to manage their portfolio online whenever it’s convenient by rerouting future premiums and changing current investments through an online portal, alongside giving regular updates on fund performance and pricing per month.
Friends Provident International Premier Advance Savings Plan
Friends Provident International offers a popular unit-linked regular payment savings plan called Premier Advance, intended to be retained as a medium- to long-term investment.
If you are at least 18 years old but under 70 at the start date, you are eligible. The lives assured may be of any age, but at the end of the initial payment term, at least one of them must be younger than 76.
The Premier Advance savings plan from FPI will have a minimum regular payment that may vary depending on the frequency selected.
Depending on your needs, you can withdraw money from your plan on an occasional or ongoing basis.
Regular withdrawals may be made every month, every quarter, every term (every four months), every half-year, or every year. Withdrawals are free but can only be made from units of accumulation.
You can suspend payments after the first 18 months if you so wish. For up to 12 months, you may put payments on hold.
They can always be restarted. You can also pay off your plan in full and stop making payments.
Friends Provident International Reserve Bond
A global investment instrument called the Reserve Bond is intended to provide capital growth over a period of at least five years. It is appropriate for investors with significant wealth who want to take regular withdrawals, develop their capital, or do both.
The product is offered to people who are at least 18, while insurance concerning lives assured have age restrictions.
Capital redemption plans and full life plans are available to investors. Whereas the latter provides a guaranteed maturity value, the former contains a life cover feature.
Access to more than 150 funds managed by elite managers is made possible by the Reserve Bond, which enables investments in both individualized and collective assets such foreign equities and bonds and unit trusts.
Friends Provident International Summit
Friends Provident International’s Summit product is a savings and investment plan designed for expat investors, specifically high net worth individuals and those leading global lifestyles. In order to assist clients in achieving their long-term financial objectives, it provides flexibility in terms of investment options and currencies.
Friends Provident International – International Protector (IPME)
Friends Provident International, as a multinational insurer, has a large market presence in the field of providing international term insurance.
International Protector Middle East is a customized protection system that provides comfort in the worst-case scenario.
There are three types of coverage available: stand-alone critical illness cover, stand-alone life cover, and life cover or earlier critical illness cover.
If your policy period is three years or more, Life Cover will pay out if you pass away within that time or, if you are diagnosed with a terminal disease at least 18 months before it expires.
You can add Total and Permanent Disability Benefit to your Life Insurance for an extra fee. This benefit will keep you from working until the end of your cover term or until you turn 65, whichever comes first.
Level or decreasing levels of life insurance are offered.
The plan and its coverage will stop once Friends Provident pays the cover amount.
If you are initially diagnosed with a critical illness or handicap that matches the policy description during the cover period and go on to survive for at least 28 days, the Critical Illness Cover will pay out. This must happen at least 90 days following the day the start of your coverage.
If you die during the cover term, are given a terminal diagnosis at least 18 months before the end of the cover term, or are initially diagnosed with a critical illness or disability that meets the policy definition before your 70th birthday, at least 90 days from the start of your cover, and then survive for at least 28 days, you will receive payment from the Life or Earlier Critical Illness Cover.
Responsible Investing Funds
The Stewardship fund, one of the first fully ethical investment vehicles, was originally made available in the UK by Friends Provident International. The company is aware of the growing interest among investors in more socially conscious funds.
Friends Provident Investment Pros and Cons
Advantages of FPI
- Tax-efficient investing choices are provided by Friends Provident International’s Premier Advance Savings Plan and the International Reserve Investment Bond.
- The Premier Advance Savings Plan guarantees a guaranteed maturity value, which means that the initial investment will never be less than the plan’s value.
- On the FPI website, investors have access to a thorough fund center that contains monthly performance data, daily updated fund prices, and thorough fund information sheets.
- With offices in the UAE, Asia, and the Isle of Man, FPI has a global reach and is available to a wide range of investors.
Disadvantages of FPI
- There are inherent risks associated with investments, such as value swings, and the underlying annual management costs can be substantial.
- The success of the investing plans cannot be guaranteed, and investors may not achieve their desired level of wealth.
- The overall performance of the investments and their tax efficiency may be affected by modifications to tax laws and regulations.
- Fund managers make all of the investing decisions, so clients have little direct control over their portfolios.
Friends Provident International Performance and Expansion
In 2023, FPI showcased a dynamic expansion in its investment-linked funds. These ranged from opportunities in emerging markets and sustainable global thematic funds to sector-specific investments in areas like healthcare innovation and global infrastructure.
A significant development for FPI in the same year was the acquisition of its parent company by Cinven, an international private equity firm. This change in majority investment from Vitruvian Partners to Cinven received regulatory approval.
FPI’s service quality and market standing are reinforced by its B+ rating and a 5-star service rating from AKG, a specialist in financial services ratings.
FPI has expanded its operations with the establishment of a new company in the Dubai International Financial Centre, receiving regulatory approval from the Dubai Financial Services Authority.
Also in 2023, IFGL was awarded the Best International Life Group at the International Investment Awards.
Should I invest in Friends Provident International?
Reviews for Friends Provident International are negative at TrustPilot, which gives the company an overall score of 2 out of 5 stars based on 222 reviews as of March 2023.
Many of the reviews say they have had bad experiences with the customer service department, if they could reach out to customer service at all. There are also some that mention huge losses in their investments due to fees.
Meanwhile, Friends Provident International’s IPME+ won the Best International Protection Plan at the Global Financial Services Awards and the Best Protection Plan at the 2022 International Investment Awards.
If their insurance and expat savings plans meet your specific needs, Friends Provident International’s unit-linked insurance products could offer long-term individual investors respectable returns.
If you decide to invest in them, make sure to talk to your financial advisor about the best course of action and for their suggestions.
For individuals looking for bigger returns on their investments than what the current products offer, there are, nevertheless, better possibilities available.
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