CGU is launching a Pep transfer service which has no initial charge but does pays IFA commission. As...
CGU is launching a Pep transfer service which has no initial charge but does pays IFA commission.
As previously reported in Investment Week, the product offers access to CGU's eight Pepable unit trusts. The CGU funds available through the
Pep transfer facility include Monthly Income Plus, High Yield, Preference, Equity Income, Europe Growth, Smaller Companies, UK & General and UK Growth.
IFA commission is 1% initial and 0.35% renewal. There is an exit charge on a sliding scale from 5% down to 1% during the first five years. There is no exit charge after five years or on death of the client.
The product is being aimed at investors whose lifestyle and investment needs have changed since they began investing in Peps more than 10 years ago. According to Autif figures, some 44% of Pep holders are aged between 45 and 64 years old, with the average Pep holder being 52 years of age.
Ruth Clarke, development director at CGU Financial Management, said: "It is vital investors continue to review their Pep portfolio to ensure that it meets their lifestyle needs and provides value for money. The average Pep holder is now around 52 years of age and their needs may have completely changed from when they took out their Pep up to 10 years ago.
"Our message is that Peps are still alive and kicking and we believe our new transfer Pep is an ideal solution for advisers and clients who wish to switch from growth to income, for example, but do not want to pay a high price for doing so."
CGU Monthly Income Plus is ranked 27 out of 84 funds in the UK General Bonds sector over three months on a fall of 1.8%, according to figures from Standard & Poor's Micropal. It is 64 out of 74 over one year on a fall of 0.7%. The fund is fourth out of 59 over three years on growth of 45.5% and has a frAA rating from Standard & Poor's Fund Research.
CGU Smaller Companies is ranked 48 out of 76 in the UK Smaller Companies sector over three months on growth of 8.1%. It is 57 out of 75 over one year on a fall of 12.2% and is 63 out of 66 over three years on a fall of 2.2%.
CGU UK Growth is ranked 181 out of 259 funds in the UK All Companies sector over three months on growth of 1.7%. The fund is 92 out of 247 over one year on growth of 4.4% and is 150 out of 217 over three years on growth of 51%.
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