View more on these topics

Pension performance challenge

Intelligent Money has issued a 10,000 challenge to Standard Life that its low-cost pension theiaccount will outperform Standard’s managed pension fund by the end of the year.

Intelligent Money chief executive Julian Penniston-Hill’s challenge, which would see the loser donate the cash to charity, follows Standard’s heavy criticism of its 35 pension earlier this year.

Penniston-Hill believes the formula used by the theiaccount would have achieved double the return of Standard’s fund over the past 10 years.

But Standard has hit back, saying that theiaccount cannot make claims about how it would have performed in the past or compare itself with the performance of a different type of fund.

theiaccount operates as a Sipp, charging a flat fee with contributions held on fixed-term deposit. The interest from this account is used to buy options on funds linked to house prices and equity indices.

Penniston-Hill says: “We openly challenge Standard Life that by the end of this year the annual return from our form-ula will be greater than that of their managed fund.

“IFAs and consumers alike have been badly let down by the pension industry. For years, insurers have had a monopoly and gotten away with offering poor value.”

Standard Life managing director (marketing) Barry O’Dwyer says: “Intelligent Money should be clear about some key facts about their proposition, for example, the hidden charges associated with any inflexible structured product such as the cost of financial instruments such as options.”

Recommended

This week in Investment

Ben Whitmores departure from Schroders appears to be a fairly big loss for the fund house. Whitmore has managed the 281m Schroder recovery fund since August 2001 and has outperformed the market impressively over most of the period.

Fears over change of ownership

The IMA represents the UK-based investment management industry. Our members include independent fund managers, the investment arms of retail and investment banks and life insurers and the mana- gers of occupational pension schemes. They are responsible for the management of approaching 3tn of funds (based in the UK, Europe and elsewhere), including authorised investment funds, […]

Investment Forum

Position Portfolios for a Changing China, Accelerating Disruption and More Political Discourse Is China an asset class? Why Investors’ Understanding of China is Changing How is disruption changing the way we invest? Established Ways of Doing Business Are Being Challenged What to Watch: Why politics matters more than ever in 2017 Key takeaways: Despite volatile […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment