The Henderson-managed £1.259bn Witan investment trust has joined forces with rival global growth tru...
The Henderson-managed £1.259bn Witan investment trust has joined forces with rival global growth trust Alliance in order to open itself up to pension investors.
The Witan Simple Contribution Pension will be administered by Alliance Trust Savings, which already runs a Sipp-type pension product, as Witan has no in-house pensions capability.
In return, the first £50 of any new pension investment made into Witan will be directed into the £1.334bn Alliance trust. Subsequent investments into the product by the same investor will be made entirely into Witan.
Witan marketing manager James Budden said that, as with stakeholder pensions, the product is based on the simple contribution limit for personal pensions of £3,600 per year.
Those in occupational pension schemes and earning above £30,000 per year are not eligible for simple contribution pensions but they can buy one on behalf of non-earning spouses or family members. Budden said this method of purchasing means investors only need to contribute £2,808 to the scheme for the Inland Revenue to gross the amount up to the £3,600 limit.
'Charges are transaction- based, and if you invest the full £2,808, the charges work out at 0.95%, which is below the 1% stakeholder limit,' he added.
Budden said the product was designed in response to demand from Witan investors who wanted to include the trust in a pension. 'We have a lot of pension funds who invest in Witan, so it seemed like a sensible move and it fits with our other products in the range such as the Isa, transfer Pep and savings scheme,' he said.
'People look for diversity and a spread of investments to give them greater security in their pension investments, and Witan's portfolio is spread among 250 of the top stocks in the world.'
The minimum investment is £234 and the product will be available for sale by the end of November.
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