Scottish Life launches Self Invested Personal Pension capability
28 November 2006
Scottish Life, the pensions specialist arm of the Royal London Group, is launching a Self Invested Personal Pension (SIPP) product in December. The new SIPP facilities are available from "Pension Portfolio", the recently rebranded extension of Scottish Life's existing successful individual personal pension product.
The new functionality in Pension Portfolio includes:
- a core investment approach using Scottish Life's innovative "Managed Strategies", designed to maximise real returns, while using diversification to reduce risk
- access to over 1,200 funds through fund supermarket FundsDirect
- an execution-only share dealing service through Selftrade
- a panel of discretionary fund managers, including Cazenove Capital Management, Rathbone Investment Management and Tilney Investment Management
- access to other permitted investments, such as commercial property.
- contracted-out benefits and self investment available in the same plan.
Barry Shields, Head of Individual Business at Scottish Life, commented:
"The ability to access a flexible range of investment options, either immediately or in the future, is becoming increasingly important for customers in the advised market. We have developed additional self investment functionality to meet this growing need.
"As immediate use of the new investment options will not be appropriate for all customers, we have designed the product so that investors only have to pay for the extra self investment functionality if and when it is used."
Existing customers in Scottish Life's "Pension Portfolio" can automatically access the new SIPP capability, if appropriate. Charges for the core proposition remain unchanged and charges for the new functionality will only be applied if and when it is used.
Barry Shields added:
"As well as evolving a leading-edge individual pension product by adding significant additional investment flexibility, we have put a lot of focus on the importance of having excellent online and automated servicing capabilities.
"We believe ongoing investment governance is fundamental, for example regular rebalancing of asset portfolios. The Pension Portfolio proposition makes this available to every investor.
"Scottish Life has developed the core online systems and we have selected Capita SIP Services to provide the specialist administration support given their wealth of experience.
"We are confident that the overall package, of product and related services, will make a significant impact in the marketplace."
- ENDS -
For further information please contact:
Alasdair Buchanan, Group Head of Communications
0131 456 7133
Despina Constantinides or Jenette Perry
0207 655 0530
Pension Portfolio from Scottish Life is written under the provisions of the Pension Schemes Act 1993 and Part 4 of Finance Act 2004.
The core investment is in an insurance policy provided by Royal London Mutual Insurance Society (RLMIS) with its own terms and conditions and charges. Other investments are held under a SIPP plan, also provided by RLMIS, with its own terms and conditions and charges.
Investment returns may fluctuate and are not guaranteed. The price of units may fall as well as rise.
Scottish Life was founded in 1881 in Edinburgh as a proprietary company, becoming a mutual company in 1968.
On 1 July 2001, Scottish Life demutualised and transferred its business to The Royal London Mutual Insurance Society Limited. Scottish Life is a division of Royal London and is the specialist pension business within the Group, providing individual and group pensions to the market via intermediaries.
Scottish Life and Royal London's other intermediary businesses are based in Edinburgh where 1250 staff are employed, with 190 working in other parts of the UK and overseas.
Royal London Group, is a specialist financial service provider. Its businesses focus on those sectors of the market which value premium propositions, operating through a number of brands:
- Scottish Life - UK pensions market
- Bright Grey - UK protection market
- Scottish Life International - offshore investment markets
- RLAM - fund management
- RLAS - life and pensions administration
Royal London is one of the stronger life and pension companies in the UK, with a current rating of 7/10 from Cazalet Financial Consulting, and has a particularly strong track record for with profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £29.5 billion. Group businesses serve over 3 million customers and employ 2640 people.
(Figures quoted are as at 30 September 2006)