Prudential launches low cost FundSIPP

by Gill Montia

Story link: Prudential launches low cost FundSIPP

Prudential has launched a lower cost FundSIPP option that provides direct access to 1,100 funds through supermarket Cofunds.

It is being offered through both the personal pension and income drawdown elements of Prudential’s Flexible Retirement Plan.

A maximum of 20 Cofunds can be chosen and the fund choice also include Prudential’s existing insured funds, such as its multi-asset range.

For investors who keep over £50,000 in Prudential’s insured funds there is no set-up or ongoing annual administration fee for the period 12th May to 31st December 2008.

Prudential estimates that this could save customers in excess of £10,000 over the course of their investment.

From the beginning of 2009, the annual administration fee for the FundSIPP option is a competitive £200 plus a set-up fee of £150. (According to Defaqto data, the average set-up fee for a SIPP is £249 and annual administration fee, £412.)

FundSIPP investors can purchase, sell and switch online and also have access to a transfer and technical team.

Prudential says it will continue to offer its full SIPP option, which gives access to a complete range of SIPP investments including commercial property, discretionary asset management and online share-dealing, through Stocktrade.