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Categories:Pensions,SIPPs

It's SimplySipp from Xafinity

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Pension specialist Xafinity has designed a self-invested personal pension for the IFA market with limited investment choice to reduce costs.

The Xafinity SimplySipp has much of the flexibility of the existing Xafinity Sipp but allows clients to choose only one investment strategy from four options. These are bank and building society accounts, insured policies, managed funds including investment trusts, unit trusts and Oeics, or quoted/unquoted stocks and shares.

IFAs can choose to manage their clients’ investments through any platform, wrap or fund supermarket. The company says this makes the Sipp genuinely whole of market, with IFAs and their clients staying in control and not having to pay a penalty for choosing something that is not on the provider’s panel of preferred investment partners.

Xafinity has put together a basic funds range comprising tracker funds, an ethical fund, a cash fund and a property fund. It also has an arrangement with Fundsdirect to provide an online fund supermarket account.

If the circumstances of a SimplySipp investor changes and they subsequently want greater diversity of investments they can easily step up to the broader Xafinity Sipp without transfer charges or complicated paperwork.

Xafinity says that in general, an investment of less than £25,000 would not allow much flexibility in its Sipp but SimplySipp may be appropriate for smaller amounts. It may also suit people who want the flexibility of a Sipp but do not want to pay for an extensive choice of investments that they would not use.

The broader Xafinity Sipp allows investment in other assets such as commercial property, hedge funds venture capital trusts and derivatives but many investors will find the SimplySipp caters for their needs initially. However, competition may come from Pointon York’s single investment Sipp, which allows in specie transfers that SimplySipp does not. In specie transfers mean transferring an asset to the Sipp without having to sell it and transfer the cash proceeds.

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