Eagle Star Life has revamped its flexible drawdown plan by increasing the fund range and adding more commission options.
This hybrid Sipp provides access to 36 Eagle Star Life funds and 12 external funds from managers including Fidelity, Gartmore and Henderson. The previous version of the Sipp allowed investment in up to six funds at one time, but this version increases this limit to 20 funds.
The previous version of the product offered just two commission options, whereas the new plan has three. Option A offers a high level of initial commission but no renewal. Option B has a lower level of initial commission with renewal and is also offered on a nil-commission basis. Option C is a high allocation option that pays renewal commission only.
Eagle Star's plan offers more funds than similar products from Scottish Widows and Norwich Union. The Scottish Widows income drawdown plan allows investment in up to 10 funds from a range of 15 internal and 8 external funds. The Norwich Union income drawdown plan, called self-invested personal pension, is even more limited as no external funds are available. It allows investment in a maximum of six funds from a range of 17 internal funds.
According to Standard & Poors, 12 of the Eagle Star pension funds are first quartile, four are second quartile and one is third quartile based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to April 15, 2002. There is no three-year past performance for the remaining funds.