The launch of a new Trust
A Family Assurance Friendly Society case study

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Page 5: Methods of investing

Family Assurance Friendly Society 3 Image 5There are two ways to invest in The United Charities’ Ethical Trust, either in a Personal Equity Plan (PEP), which will ensure that all returns are completely free of income and capital gains tax, or directly into the Unit Trust itself. It should be noted that PEPs are only available to investors over 18 years old. Investors in the Ethical Personal Equity Plan can make a lump-sum investment of between £500 and the statutory limit of £6,000 in each tax year, or alternatively can contribute regular monthly savings subject to a minimum of £30 per month. All income and capital gains are completely tax-free. (N.B. It may no longer be possible to invest in a PEP after April 1999.)

It is possible to invest a single lump sum from £500, make regular monthly contributions, again from as little as £30, or even combine regular payments and lump-sum investments. There is no maximum amount that can be invested directly into the Unit Trust and it is possible to invest for children.

The new Ethical Unit Trust has clearly been an important step forward for Family Assurance Friendly Society. From the customer’s point of view, it provides a sound performing unit trust (required by the investor) and meets the ethical discrimination required by the beneficiary. It therefore sits well with Society’s positioning as a caring but professional provider. It also allows low cost and regular contributions - making it competitive. It therefore fulfils the Society’s Corporate Mission:

‘To put affordable savings and protection policies within the reach of our members.’

Project management is an important business skill. Once the plans for the
Ethical Trust were approved, it was necessary for the Project Manager to
create a detailed plan of action - including:

  • obtaining legal approval for the new Unit Trust
  • agreeing a budget and set up costs
  • preparing a marketing plan including identifying customers from the existing database
  • deciding on the best way of informing members about the new product e.g. mailshot, member magazine, etc.
  • establishing a clear schedule with dates and key events and ensuring that everyone involved is fully aware of this schedule
  • design of promotional literature for the new trust, etc.

Family Assurance Friendly Society | The launch of a new Trust