Family Suntrust to provide a wide range of investment options, appealing to investors who want to harness purchasing power
Axa Winterthur Wealth Management has launched its Family Suntrust, which provides groups of individuals with a wide range of investment options through a single Sipp wrapper.
The trust will appeal to groups including families or business partners who want to harness the purchasing power of pooling their investments. It could also appeal to retirees approaching 75 who want an alternative to an annuity or alternatively secured pension (ASP).
Members can choose from a range of self-investment solutions including stocks, shares and collective investments, which may be run by a discretionary manager.
They will also have access to the Premier Invest offshore bond, which features a range of over 3,500 funds, UK commercial property and other offshore and onshore bonds, stocks and shares and a Trustee Investment Plan.
The Suntrust will provide a range of options for securing pension benefits from the fund at retirement as well as the capabilities to provide death benefits both before and after retirement for a spouse, civil partner or other dependent.
Minimum investment is £200,000 gross (after tax relief) for the whole plan and all individual payments must be a minimum of £1,000 gross.
Annual or single contributions can be paid by the individual or his/her employer. Individuals can also arrange for transfer payments from other pension schemes.
The initial fee for the plan is £500 with a yearly admin charge of £675 per plan and an additional £100 per contributing adult per annum. IFA remuneration is on an adviser agreed arrangement or CAR-type model.
David Thompson, managing director of sales and marketing, says the new trust builds on the Ssas and Sipp heritage of the two separate Axa and Winterthur businesses, which were merged last year. He said the financial strength of Axa underpinning the trust is particularly appealing to advisers and their clients during a time when company finances are under the spotlight. The Suntrust also fits well with RDR proposals, he adds.
"We will find more and more advisers pushing up the scale in terms of qualifications and professionalism and they will be operating at a level with customers wanting quite complex advice and innovative solutions.
"It looks like independent advice will be redefined away from packaged products and advisers will need to look at the entire investment universe."