London, 12 February 2008 –
Fidelity FundsNetwork™ is urging advisers to review existing pension plans to help them assess whether there may be a cheaper option for their clients’ retirement savings.
A recent poll of advisers** by FundsNetwork found that the large majority of advisers (86%) see cost as the most important factor to consider when choosing a Self Invested Personal Pension (‘SIPP’). Research conducted among investors*** showed that nearly half of SIPP investors (46 per cent) feel that charges are set too high.
Rob Fisher, Head of Sales & Marketing Fidelity FundsNetwork said: “Our current special offer brings to the advised market a SIPP which is free from any pension charges for clients in the pre-retirement phases - a potential cost saving to the client of nearly £13,000****. Investors don’t have to pay over the odds for an ISA so why should a SIPP be any different?”
The FundsNetwork SIPP Price Edge
- No set up fees
- No yearly administration charge
- No initial fund charges
- No fund switching charges*****
- In retirement: administration charges will only apply if drawdown options selected
Fidelity FundsNetwork SIPP
FundsNetwork is waiving core plan fees****** for IFAs who make platform mutual fund investments on behalf of their clients of £150,000 or more, placed into the FundsNetwork SIPP between Monday 4th February 2008 and Friday 2nd May 2008. This means that the only fees paid by investors pre-retirement will be the underlying annual charges on the funds and any charges relating to adviser commissions. Other administration charges will apply if a client makes use of income drawdown in retirement.
FIL Limited (“FIL”) and its subsidiary companies serve the major markets of the world by providing investment products and services to individuals and institutional investors outside the US. The FIL Organisation manages a total of £151.7 billion of assets.*******
Notes to editors:
* Eligible customers for the offer are new SIPP customers submitting applications with a gross value of £150,000 and above, investing in ‘core investments’ (mutual funds, Standard Life Policy Funds and the SIPP Bank Account). As and when customers invest in non-core investments, normal charges will apply. In order to qualify for the offer a valid quote must be obtained and the application accepted before the offer is withdrawn. The SIPP special offer is only available between 4 February 2008 and 2 May 2008 although FundsNetwork reserves the right to withdraw this offer at any time. FundsNetwork will give two weeks' notification of termination.
** Source: Poll conducted by Fidelity FundsNetwork among 61 advisers across the UK on 14 November 2007.
*** Source: Research conducted online by YouGov amongst a sample of 1,995 people between 5th and 7th December 2007
**** Calculations based on a lump sum investment of £150,000 over a 25 year term with charges being saved assumed to remain as £260 pa in arrears throughout, with a one-off £104 set up fee at outset. A growth rate of 5% net of other charges has been assumed e.g. fund expenses. Charges saved = £12,761
***** On some type of investments, there may be an additional bid-offer spread to pay.
****** Core administration charges mean initial set-up charge and yearly administration charge. It does not include any in-retirement administration charges such as income drawdown.
******* Source: Fidelity as at 31.12.07
FundsNetwork, Fidelity’s fund platform, was launched in June 2000. It offers advisers and their clients the ability to invest, manage and monitor their investments in one place, bringing them control, efficiency and new business opportunities. The FundsNetwork service is offered and managed by Financial Administration Services Limited. Any opinions expressed are made at the time of writing and can be subject to change without notification. The value of investments can go down as well as up and an investor may not get back the original amount invested. The FundsNetwork SIPP is provided and administered by Standard Life Assurance Limited. Financial Administration Services Limited (a Fidelity group company) is registered in England and Wales (no 1629709) Registered office Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent, TN11 9DZ. Standard Life Assurance Limited is registered in Scotland (SC286833) Standard Life House, 30 Lothian Road, Edinburgh, EH1 2DH. Both companies are authorised and regulated by the Financial Services Authority. Calls may be recorded and monitored to help improve customer service. Fidelity means FIL Limited (FIL), established in Bermuda, and its subsidiary companies. Assets as at 31.12.07 are those of FIL. The FundsNetwork® logo and the FundsNetwork™ are trademarks of FIL Limited.
