Standard Life has launched a Sipp under which policyholders can invest in a range of its institution...
Standard Life has launched a Sipp under which policyholders can invest in a range of its institutional pooled pension funds, together with retail funds from third-party providers.
While a Sipp investor can invest in most retail unit trusts as well as other asset classes, the Standard Life product offers investors a range of pre-packaged investment options, covering different levels of risk. Options include Secure, Stable, Balanced and Opportunity.
The product, called the Standard Life Self Invested Pension Plan, has been put together in partnership with James Hay, which is acting as trustee to the scheme. The investments are held under a personal pension scheme, administered by James Hay.
Investors can choose from a range of 20 Standard Life pooled funds, which carry institutional annual management charges of between 0.45% and 0.8%. Policyholders can also access retail funds from external providers such as Fidelity, Threadneedle, Gartmore, Newton and Deutsche, which carry slightly higher annual management charges, albeit lower than normal.
The minimum investment is £100,000 but should investors not require drawdown in the near future, the minimum is £50,000.
Commission-based intermediaries have a choice of how they can be remunerated, subject to client agreement. Should the intermediary opt for initial commission, for every 1% the adviser takes in remuneration, the client will have to pay an additional annual charge of 0.15% on their investment to Standard Life.
Alternatively, intermediaries can opt to take remuneration on a fund-based renewal basis, or a combination of initial and renewal. Should the fund-based renewal option be taken, an annual charge of 0.1% will be levied on the client's investment for every 0.1% of renewal taken by the intermediary, up to a maximum remuneration level of 0.5%. The lower the fee taken by the intermediary, the lower the cost to the policyholder.
The first transfer within the fund ranges offered in any 12-month period is free of charge, with additional administration fees being levied for any additional switches within that period.
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