Scottish Amicable is boosting IFA commission by 1% for lump sum investments in its Optimisa product,...
Scottish Amicable is boosting IFA commission by 1% for lump sum investments in its Optimisa product, which links to a number of external funds, writes Jenne Mannion.
Until April 5 this year, IFAs will receive 4% instead of the standard 3% on investments in Optimisa. as well as offering in-house Scottish Amicable funds, managed by Prudential, Optimisa also has links to products offered by Mercury, Newton, Perpetual, Phillips & Drew and Schroders. In addition it offers access to the £60bn Prudential with-profits fund, the largest with-profits fund in the UK.
Minimum lump sum investment in Optimisa is £1000. The front end charge is 4.75% and the annual management fee is 1.5%. IFA renewal commission is 0.5%. There is a monthly plan available for Optimisa, at a minimum of £50. The added commission does not apply to monthly contributions.
IFAs also have the option of passing the extra commission on to their clients in the form of a discount. Income funds within Optimisa are the Scottish Amicable Equity Income Trust and Corporate Bond trust. There is also the Newton Higher Income, Phillips & Drew Equity Income and Mercury Corporate Bond trusts. For achieving capital growth there are a range of managed trusts, offered through Schroders, Philips& Drew, Mercury, Newton and Perpetual.
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