Available with immediate effect, the changes to the firm’s Enhanced Income Fund and Strategic Bond Fund open them up to the financial intermediaries market for the first time.
The latter strategy is designed for investors seeking a ‘one-stop’ bonds vehicle within a larger portfolio of income-generators, while the former targets high-returning income streams.
Santander said that it has implemented the changes in order to provide economical lower-risk retirement options in an increasingly competitive environment.
Nigel Chappell, Santander’s head of intermediary distribution and development, said: “While retirement might be changing, the majority of people still want a good level of predictable income, and confidence that their money is not going to run out.
“While investment risk is still a factor, people in retirement are now having to face the reality of inflation and longevity risk, as well as the escalating cost of income guarantees.”
The Strategic Bond Fund carries an annual management charge of 0.5% and ongoing fee of 0.63%, while the higher-return Enhanced Income Fund has an AMC and ongoing charge of 0.5% and 0.6% respectively.
Furthermore, having re-launched the strategy in August, Santander has rebranded its Equity Income Portfolio as the Atlas Income Portfolio.
The multi-asset portfolio targets monthly income between 4% and 6% per annum, and carries and 0.4% AMC and ongoing charge capped at 0.99%.
