Pointon York adds low-cost Sipps to range
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Specialist self-invested personal pension provider Pointon York has established two lower cost Sipps, the single investment Sipp and the e-Sipp
The single investment Sipp differs from the firms existing full Sipp, the Pointon York individual Sipp, by restricting investment to a single type of investment to reduce costs. Investors can choose one type of investment from a list of four - deposit accounts with bank and building societies, unit trusts, Oeics and investment trusts, UK and international stocks and shares, or structured products. Investors are also able to hold portfolios managed by discretionary fund managers, providing their administration allows Pointon York to do no more than record the total value of the portfolio.
The investment options available for the single investment Sipp is limited compared with the individual Sipp, but the charges are lower. The individual Sipp can also hold unquoted shares and commercial property, which the single investment Sipp cannot.
The e-Sipp is the lowest cost option and investment choice is limited further to reduce costs. Investors in the e-Sipp choose one of five risk-graded managed portfolios on the Praemium platform, known as Smart funds. These are tailored towards defensive, cautious, balanced, aggressive and aggressive growth risk profiles. Strategic asset allocation for the Smart funds is determined by risk management consultant Barrie & Hibbert while investment analyst OBSR, is responsible for fund selection. Pointon York’s role is to provide the Sipp wrapper and administration.
The new Pointon York products enable the needs of different types of investors to be met through a Sipp. Not all investors will be able to afford or want to use all the features of full Sipps such as Pointon York’s individual Sipp. The firm has a good reputation for service and administration, which should help to attract interest.
However, James Hay’s e-Sipp may have more appeal for some investors because it provides access to an execution-only dealing service for investment in stocks and shares, as well as the collect and select fund ranges of unit trusts, Oeics and institutional pension funds. James Hay’s select Sipp, along with products from Sippdeal and TD Waterhouse, may also provide competition.
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