Alico launches fixed-term annuity
Share
Alico Wealth Management has launched a fixed-term annuity as part of its new Select Portfolio.
The former AIG subsidiary will be directly competing with Living Time’s products, which it underwrites.
Metlife bought up Alico last month in a deal worth more than £10bn. It is unclear whether the Alico brand will be abandoned when the sale completes later in the year.
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 product sits alongside an income drawdown plan and a conventional annuity, which can be topped up, on the Select Portfolio as well as a stocks and shares Isa, an investment bond and a 10-year qualifying life policy designed for 50 per cent taxpayers.
Guaranteed and structured investments are also available.
All products are underpinned by the same range of investments, are subject to 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 that 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.
“Alico feels that the greater transparency proposed by the Retail Distribution Review is the way forward, and the Select Portfolio should encourage advisers to adapt their approach and prepare for RDR ahead of the 2012 deadline.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
