Scottish Mutual has relaunched its range of pension drawdown options for high net worth individuals....
Scottish Mutual has relaunched its range of pension drawdown options for high net worth individuals.
The Complete Retirement Package (CRP) is aimed at investors with a pension pot of more than £100,000.
A new range of products within the CRP has been created, plus there is a new charging structure for products already available through the Classic range.
The existing Classic range includes the Classic Clustered Buy Out Transfer Plan, Classic Phased Retirement Plan and Classic Income Withdrawal Plan. This charging structure includes 100% to 108% allocation, a bid/offer spread of 5%, an annual management charge, an installation fee and administration fee.
The same products from the Classic Range are available through the Contemporary range but with a different charging structure of 100% allocation, no bid/offer spread, an annual management fee and establishment charges.
Two completely new products are also available within the Contemporary range. These include the Contemporary Occupational Withdrawal Plan and the Contemporary Protected Rights Income Withdrawal Plan. The same charging structure applies.
Ambrose McGinn, director, at Abbey National for Intermediaries, said: 'The CRP offers access to one of the widest range of pension funds in the market place and is particularly attractive because of its extensive range of underlying investments and transparent charging structure,' he said.
At the same time the group is to launch a with-profits bond, investing in a fund to be run on principles consistent with Ron Sandler's recommendations on transparency.
As first revealed by Investment Week, the bond, available from 14 April, will be invested in two with-profits funds that have a simplified charging structure. Investors in the product will receive an annual statement disclosing the current redemption value, current proceeds on death, the asset allocation of the fund and fund performance.
The group, which closed its with-profits funds to new business last year, is to launch further products off the fund.
The Scottish Mutual Smoothed Income fund will invest in property, high yielding equities and corporate bonds. It will initially have some 80% in fixed interest and 20% in equities.
The Scottish Mutual Smoothed Growth fund will invest 80% in equities and 20% in fixed interest. Investors can hold one or both of the funds under the single bond wrapper.
Minimum investment in the product is £5,000 and there is a sliding scale allocation rate. For premiums over £30,000 there is a 101% allocation rate, for investments above £50,000 there is an allocation of 101.5% and for £100,000 plus investments an allocation rate of 102% applies.
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