View more on these topics

Product matters

Pru does drawdown, just like it does everything else, by the numbers. It probably read a book about it and thought it would give it a go.

The Prudential drawdown plan makes all the right moves and may prove popular. Certainly, it is likely to be more popular than the complicated flexible annuity which Pru launched a year or so ago.

The drawdown plan has simple, clear charges which are directly linked to the commission terms. Maximum payment to introducing IFAs is 3 per cent, with up to 0.5 per cent trail commission.

There are 25 investment funds to choose from, including the Pru&#39s with-profits fund, three lifestyle investment strategies and a Sipp option. You can hold investments in up to 19 different funds at any time and get six free switches every year, which should be enough to keep most people happy.

External investment managers include Merrill Lynch, Newton, Invesco Perpetual, Schroders, UBS Global, and M&G, mainly offering managed or UK equity funds.

The fund transfer option allows investors to move money between the drawdown plan and the Pru&#39s flexible annuity without having to cash in any investments. I can see this being well received and if you buy into the package, then the total retirement management will go down well with clients who want a complete pension solution.

This is a simple package without any serious flaws. The company&#39s brand awareness should help sell the product, even if the brand image is taking on the air of a bicycle which has been left in the shed too long.

Tom McPhail is pensions research manager at Hargreaves Lansdown

Recommended

FSA could replace DPS with menu

The FSA is giving serious consideration to a menu system alternative to the defined-payment system after asking Aifa and a working party of providers develop the idea.The report put forward proposals allowing consumers to make comparisons of the cost of advice between different IFAs and between different distribution channels. This is in response to the […]

Collins Stewart builds onshore

Collins Stewart is aiming to establish an onshore track record with the Collins Stewart growth fund, an Oeic fund of funds.The fund invests in between 15 and 20 externally managed funds and is benchmarked against the FTSE Association of Private Client Investment Managers and Stockbrokers (APCIMS) growth index. It will diversify across bond and equity […]

Invesco – Invesco Absolute Return Fund

Friday, 20 September 2002 Type: Oeic Aim: Income by investing in large-cap US equities, S&P 500 stock index futures and US Treasury bond futures Minimum investment: Lump sum euro 125,000 Place of registration: Dublin Investment split: 100% in large-cap US equities, S&P 500 stock index futures and US Treasury bond futures Isa link: No Charges: […]

&#39Top five firms to take 70% of life and pensions&#39

The top five players in the life and pension market will increase their market share over the next five years to 70 per cent from the present 50 per cent, according to consultancy Oliver Wyman& Company.The top five providers are likely to change from the current composition because of accelerated consolidation in the marketplace, says […]

Allianz Technology Trust – April 2017

Welcome to the latest update for Allianz Technology Trust PLC from the Trust’s portfolio manager, Walter Price. Portfolio review The Trust’s NAV returned 4.3% , outperforming the Dow Jones World Technology Index return of 2.8%. In US dollar terms, the portfolio gained 4.8%. During the month, stock selection contributed to relative performance, and industry allocation […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment