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Advisers go with the Sipp and multi-manager flow

Traditional pension product sales are waning, with almost three-quarters of all inflows into pensions after A-Day set to flow into Sipps and multi-manager pensions, according to Skandia.

The firm says only 26 per cent of new pension business will be invested in traditional life office pensions – pensions offering only the insurance firm’s funds – after next April.

Skandia’s survey of 500 advisers reveals that 35.5 per cent say the most likely route for their clients’ money after A-Day will be Sipps and 35.5 per cent say multi-manager personal pensions – personal pension wrappers offering a broad range of portfolios from external fund managers.

Three per cent point to specialist pension wrappers for post-A-Day contributions, such as SSASs and EPPs.

Eighty-one per cent of adv-isers say multi-manager per-sonal pensions and Sipps are their favoured route for unsecured and alternatively secured pensions after A-Day, largely because of the investment flexibility and drawdown facilities.

Only 7 per cent of advisers feel residential property is a suitable asset class for their pensions, with 79 per cent saying it would only be suitable for a select group of clients and 14 per cent saying it will not be appropriate for any clients.

Pensions marketing man-ager Billy Mackay says the survey reflects the emergence of investment solutions as the main influence behind financial advisers’ pension recommendations as they look for product structures that can facilitate client-specific asset allocation, portfolio modelling and ongoing monitoring.

Mackay says: “There are still a lot of personal pensions offering only a very restricted external fund range but there is strong demand for multi-manager pensions and Sipps.”

Jamieson Financial Management principal Bruce Jamieson says: “We are increasingly looking at asset allocation and the very least you can get away with is a stakeholder with external funds like Legal & General’s.”


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Guide: day-to-day tasks ​— can your system manage?

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