Standard Life has designed an individual stakeholder pension for April 2001 that gives policyholders access to its with-profits fund.
The Standard Life stakeholder pension will include the with-profits fund as the default option. This could benefit clients who are new to investing and who feel nervous about investing in stocks and shares.
Where a client chooses the with-profits fund, the annual management charge is reduced to between 0.8 per cent and 0.6 per cent, depending on the total value of the pension.
More adventurous clients can choose up to 12 funds from the range of 15 Standard Life funds, which cater for all risk profiles. There is a choice of funds such as the managed fund for cautious investors and specialist funds such as ethical and Japanese, to suit more adventurous clients.
However, in its focus on with-profits, the pension has failed to provide any external fund links. This is a direct contrast to the Scottish Widows stakeholder pension, which has three external funds from Newton, Merrill Lynch and Schroder, but does not have a with-profits fund.
Of the 15 Standard Life funds available, the Property fund has five Standard & Poor's (S&P) star rankings and six funds equity, European, international, managed, North American and stock exchange have S&P one-star rankings as at February 16, 2001.