Alico adds fixedterm annuity to Select Portfolio
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Alico Wealth Management is offering a fixed-term annuity as part of its new Select Portfolio product range.
It will be directly competing with Living Time’s products, which it underwrites.
Metlife bought Alico last month in a deal worth more than £10bn. It has not yet been revealed if the Alico brand will remain when the sale completes later in the year.
The Select Portfolio includes a range of investment and retirement options. In the retirement range, the fixedterm annuity is alongside an income drawdown plan and a conventional annuity.
The fixed-term annuity provides customers with an income for an agreed term but customers do not have to lock up their entire fund like they do with Living Time’s products and LV=’s new protected retirement plan.
The investment options in the Select Portfolio include a a stocks and shares Isa, an investment bond and a 10-year qualifying life policy designed for 50 per cent taxpayers.
’Flexibility to remain with their adviser from accumulation phase to retirement and beyond’
All products are underpinned by the same range of investments and have the same charges starting at 0.75 per cent and commission levels of up to 8 per cent.
Advisers can choose from a best-of-breed panel of around 100 third-party funds.
If any fund underperforms its peers, Alico will reduce the charge for the following quarter by 0.25 per cent.
Product director Mark Hawthorne says: “We believe clients should not have to change products just because their circumstances have changed.
“Their investments should be flexible enough to adapt with them. The Select Portfolio provides this flexibility, allowing clients to remain with their financial adviser from the accumulation phase to retirement and beyond.
“The greater transparency proposed bythe retail distribution review is the way forward and the Select Portfolio should encourage advisers to adapt their approach and prepare for the RDR.”
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