Santander UK has agreed to distribute Prudential’s range of investment bonds to its customers under an exclusive deal.
The move will see Santander distribute the Pru’s Flexible Investment Plan range of funds for an initial five-year period from 2011, according to a statement.
This will make the Pru bonds available to Santander’s 25 million UK customers in 1,300 high street branches, it says.
It adds that Santander Asset Management UK is likely to make some of its funds available via the Flexible Investment Plan platform following the deal.
Prudential distribution director Andy Curran says the move provides an additional distribution channel for the bonds but will not detract from the existing IFA channel.
He says: “There is no reason to expect any changes in the IFA market.”
Curran says Santander customers who invest in the Pru bonds will have the same charging structures as intermediated investors.
He says the Pru will be establishing a separate account management team to handle the Santander business, so as not to affect the other distribution channels.
He adds: “This further endorses our brand. It reflects the position we have in the market based on what our bonds have done in terms of performance.”