Investment trust manager Baillie Gifford has teamed up with Alliance Trust Savings to offer the Baillie Gifford select pension, a self-invested personal pension.
The Sipp provides access to Baillie Gifford's eight investment trusts and four bond funds, plus a select range of over 1,500 individual shares, listed securities, Oeics, unit trusts and Alliance Trust savings deposit accounts.
Investors can create their own portfolios and consolidate existing pension arrangements by transferring from other pension providers. However, transfers from another provider will incur a £50 charge plus VAT, while transfers to another provider will cost £125 plus VAT. If investors choose the Baillie Gifford investment trusts, the 0.1 per cent dealing commission will be rebated.
The Sipp wrapper has no set-up fee or annual charges, but there may be charges on the underlying investments. The Sipp has a transaction-based charging structure, so investors will only pay for the transactions they make. There is a choice of a £7.50 weekly dealing charge or a £15 daily dealing charge.
An income withdrawal facility allows investors to take income from the age of 50 but this will cost £175 to set up and investors may incur other charges such as a £15 for security transfer charge and £10 for payment variation.
The lack of set-up fees and annual management costs on the Sipp wrapper distinguishes the Sipp from other providers, but the transaction-based structure may not suit investors who are planning to trade actively. Also, the investment choice on offer, although fairly wide, is limited compared with some Sipps that do not have an investment trust slant. However, the ability to invest in commercial property is in the pipeline for this Sipp, which could increase interest from investors.