move is part of the group's restructuring following the purchase of national mutual
GE Life is to launch into the UK pension market as it restructures to incorporate the National Mutual brand into its business.
All National Mutual products will be renamed under the GE Pensions label. All existing National Mutual products will be rebranded GE and direct debits will be changed over.
As part of the changes, GE is adding two new funds, a bond and global equity, to its pension fund range. It will enhance its Sipp offering and change the charging structure of its existing pension products, which will be sold and serviced by a combined GE and National Mutual sales force.
The group is to launch the seventh tranche of its High Income and Growth (HIG) Plan this week. HIG offers investors a fixed annual income of 10%, 0.78% monthly or a single 33% growth payment after three years.
The product, which is being targeted at Ssas and Sipp policyholders, will be linked to the Euro Stoxx 50 index. Investors will be guaranteed their initial capital back unless the index is more than 20% down at the end of the three-year investment term. If the index drops by 20% but then returns to its initial level, capital will be safeguarded.
If the index has fallen 20% or more at the end of the product's term, for every 1% fall in the index there will be a 1% erosion of capital.
The product is available in a Pep or Isa wrapper and minimum investment is £7,000.
Standard commission of 3% is available. The closing date for investment is 17 May, with investment made on 27 May.
The two new pension fund links are to be called Global Equity and Select and Corporate Bond.
The Global Equity Select fund is being managed by GE Asset Management's Brian Hopkinson, based in Europe, and Gene Bolton, based in the US.
The portfolio will be aggressively managed with 55 to 75 stocks based on the best ideas from around the world, using expertise from institutional funds. It will aim to outperform the total unhedged return of the MSCI World Index over rolling three-year periods before charges.
The Corporate Bond fund will be managed by GE Insurance Holdings, the parent company of GE Life. The lead manager will be John Godley, who will concentrate on investment-grade bonds focusing on BBB and A-rated paper. It aims to outperform the Merrill Lynch Sterling Corporate Index over rolling three-year periods. Both funds will be available from 11 April.
Changes are to be made to the Sipp offering previously sold through National Mutual. Malcolm Gordon, head of Sipp development at GE Life, said the group is looking to add investment options including links to supermarkets.
Initial changes will be made to the Sipp range in the summer, with further changes in winter.
The provider plans to move to single pricing on its pension fund range this autumn, abolishing the bid-offer spread.
Echoes of sci-fi thriller 'Minority Report'
Heading for biggest annual nominal losses since 2008
‘To drive future inflows and AUA growth’
‘To support growth strategy’