Merchant Investors is not making any fundamental changes to its pension range, as it believes it com...
Merchant Investors is not making any fundamental changes to its pension range, as it believes it complies with the stakeholder proposals
The life office has offered its pension portfolio range since 1994, featuring annual management charges as low as 0.25%, no penalty on transfer, no bid/offer spreads and access to more than 50 funds from a number of fund management companies
George Ladds, supervisor, customer support and marketing, said: "We believe our pension portfolio meets, and in some areas exceeds, the broad requirements for a stakeholder pension. We do not expect to make any fundamental changes once stakeholder is introduced
"If, as anticipated, we do launch a stakeholder, we will allow funds to be transferred from a pension portfolio to the stakeholder without loss of fund value
The portfolio features 100% allocation rate with an administration charge on each contribution. For amounts up to £99,999 there is a 2% charge, 7% if commission is paid. For amounts between £100,000 and £199,999 the charge is 1%; 6% with commission and for contributions over £200,000 the charge is 0.5% and 5.5% with commission
The annual management charge is 0.75% for funds with a value less than £30,000. For fund values between £30,000 and £199,999, it amounts to 0.5% and for £200,000 plus it is 0.25
For each 1% of commission sacrificed, the administration charge is reduced by 1%. Optional fund-based renewal commission up to 0.5% a year of the fund is also available, payable at the end of each calendar quarter. Investors are given a range of funds to chose from, including Aberdeen, Fidelity, Framlington, Invesco and Perpetual
From 1 November, Merchant has linked its pensions and investment range to Framlington's NetNet Fund, the first pensions office to do so
Contact: 0800 374 857 or [email protected]
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