View more on these topics

STI following on heels of Invesco into DC market

Fund managers Invesco and Scudder Threadneedle Investments are moving into the rapidly expanding UK defined- contribution pension market ahead of the introduction of stakeholder in April 2001.

Scudder estimates it will take up to £3.2bn in contributions by 2005. While STI&#39s plans are in their infancy, Invesco last week announced its new offering, called Different.

Invesco says it is fully committed to the stakeholder market and sees it as central to the future of the DC market.

STI says its plans for the stakeholder market are still under discussion.

Invesco claims its service will be different from other asset managers working in the DC market because of its track record in the US market where it has 12 years&#39 experience.

Invesco also says its multi-manager strategy will enable a wider investment choice, giving it an advantage over rivals.

STI is planning to enter the DC pensions arena by early 2001 and says its commitment to UK pension business is demonstrated by its management of £18bn in pension assets.

Invesco defined contribution UK managing director David Butcher says: “Stakeholder is sponsored by the Government so it really is going to open up the market. It will accelerate the shift away from defined-benefit to defined- contribution plans and will consolidate the currently fragmented DC market.”

STI senior vice-president Malcolm Callaghan says: “We have not yet made a decision on stakeholder but are considering entry into that market as part of a high-level business plan going before the board in the near future.”

Recommended

Norwich & Peterborough – Three Year Fixed

Tuesday, 17th October 2000.Fixed term: Three years.Fixed rate: 5.99 per cent.Minimum loan: £1,000.Maximum loan: Up to 90 per cent of valuations subject to no maximum.Income multiples: 3.25 times principal income plus second or 2.6 times joint.Arrangement fee: £295.Redemption fee: Six months&#39 interest in first five years.Conditions: None.Introducer&#39s fee: Loans up to £75,000 – £125, loans […]

ScotLife powers ahead to push pension plans

Scottish Life is producing a new worksite marketing toolkit for IFAs and their corporate clients to raise awareness of company pension schemes among employees.Designed around the theme What are you doing after work?, it encourages employees to think about their life both in and out of work and when they retire.The toolkit contains literature IFAs […]

Independent view

What mortgage-related software do you use to help you advise your clients?A gentleman doing some research on our usage of a well-known software package recently put this question to me. My answer was “none”. This is because we simply do not get involved in advising clients about their mortgages.We always recommend that they seek the […]

Yorkshire Building Society – 5.99 Per Cent Fixed Plus Tracker

Monday, 16th October 2000.Type: Two year fixed rate mortgage tracking Bank of England base rate in years three to five.Fixed term: Two years.Fixed rate: 5.99 per cent.Minimum loan: £25,000.Maximum loan: Up to 95 per cent of valuation subject to no maximum.Income multiples: 3 times principal income plus 2 times second or 3 times joint.Arrangement fee: […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment