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Witan wraps up in pension

Henderson Global Investors has made its Witan investment trust available within a pension wrapper to create the Witan simple contribution pension.

Witan is already available through other investment wrappers, such as an Isa or the Jump children&#39s savings plan. The company says many pension funds invest in Witan, so creating its own pension wrapper seemed to be a logical step.

Alliance Trust Savings, which offers the Alliance select pension, will administer the Witan pension. However, as a condition of this relationship, the first £50 of policyholders&#39 contributions will be invested in the Alliance trust investment trust, with the remainder going into Witan.

The Witan investment trust has been around since 1909. It invests in approximately 250 companies worldwide, but approximately half its portfolio is invested in the UK. Examples of holdings include BP, Philips and Coca-Cola.

The sismple contribution pension is based on the stakeholder limit for contributions. The maximum that policyholders can contribute is £2,808 a year, which is grossed up to the £3,600 limit by the Government.

There is no set up charge or annual management charge. All charges are transaction based, so investors will only incur charges when they buy or sell shares.

This pension has a similar structure to stakeholder, but adds a new twist by providing access to an investment trust. It is available to anyone under 75 who is not in an occupational pension scheme and who earns less than £30,000 a year. However, IFAs believe it will be best suited to non-working spouses and as a gift for children.

According to Standard & Poor&#39s, the Witan investment trust is ranked 21 out of 29 trusts based on £1,000 invested on a mid-to-mid basis with net income reinvested over three years to December 16, 2003.


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