NPI has extended its income drawdown range with two additional options incorporating a variety of pr...
NPI has extended its income drawdown range with two additional options incorporating a variety of product structures, commission options and fund links.
The Flexible Income Plan already includes external fund links to Barings SG Asset Management, Newton, Schroders, Chamberlain de Broe and Perpetual along with Hendersons' range of non-NPI funds.
The existing option pays out full commission with a bid/offer spread of 5%, features an annual management charge of 1%, and an allocation rate of between 100% and 103% depending on the investment term.
One of the two latest options to be added to the plan allows for full commission and has an annual management charge of 1%. It has no bid/offer spread and an allocation rate of 100%. This option carries an installation fee of 0.25% per month for the first 24 months and a loyalty bonus amounting to 0.5% of the fund after six years then every third year.
Another option, which has been added to the income drawdown product features nil commission with no bid/offer spread and no installation fee.
This option requires a minimum premium of £150,000 while the first two must have a minimum £100,000 for ages 30-50. Minimum entry age for all three options is 30, a reduction in NPI's traditional limit of 50 which reflects the changing nature of the market, according to Sue Harwood, income drawdown marketing manager for NPI.
She said: "We've broadened out the schemes to take into account younger high earners such as internet entrepreneurs and footballers who are earning vast amounts of money and may wish to draw on it from an earlier age."
Harwood said NPI was also following the market move towards "clean" products where there is not bid/offer or allocation rate confusion as well as targeting fee-based IFAs at the top end of the market.
Fee based renewal commission terms for options two or three can either be taken as 3.5% initial plus 0.75% with the extra 0.25% funded by unit cancellation or 4.5% initial plus 0.25% trail commission.
NPI is also offering technical support for people switching existing drawdown schemes from other providers to NPI.
As well as its telephone support, NPI is to launch an internet site early next year to cover compliance training, technical support, customer service and details on the full income drawdown product range.
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