Prudential has launched a new lower cost FundSIPP option which will give direct access to 1,1000 funds through supermarket Cofunds.
A maximum of 20 Cofunds funds may be selected and the expanded fund choice will also include Prudential’s existing insured funds, such as its multi-asset range.
The FundSIPP option will be available through both the personal pension and income drawdown elements of Prudential's Flexible Retirement Plan.
From 12 May until 31 December 2008, there is no set-up or ongoing annual administration fee for access to the FundSIPP option if over £50,000 is kept in Prudential’s insured funds.
From this date, the annual administration fee for the FundSIPP option is £200 plus a set-up fee of £150. This compares to an average set-up fee for a SIPP of £249 and an average annual administration fee of £412 (according to Defaqto data).
FundSIPP also provides online fund purchases, sales and switching; access to a transfer and technical team; flexible initial commission options on fund purchases and full trail commission on funds held.
Prudential will continue to offer its full SIPP option, giving customers who require a broader range of investment choice access to the complete range of SIPP investments including commercial property, discretionary asset management and online share-dealing through Stocktrade.
Julie Mulvanny, head of individual pensions, Prudential UK says: “By offering this new more affordable SIPP option, customers simply pay for the investments they need and use – not all of them want access to a full SIPP at the outset. It is possible to move from the FundSIPP to the full SIPP and we will automatically adjust our fees.”
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