Baillie Gifford has entered the Sipp market with a low-cost product centred on its investment trust and fixed-interest fund ranges.
The Baillie Gifford select pension, administered by Alliance Trust Savings, has no initial or annual fees and charges are only made for transactions.
These charges include £7.50 for a weekly dealing facility or £15 for a daily dealing facility plus 0.2 per cent dealing commission.
The dealing commission is rebated for purchases of any of the eight Baillie Gifford-managed investment trusts. Entry into either the Alliance or Second Alliance investment trusts or Baillie Gifford's four fixed-interest pension funds is also discounted.
Transfers into the Sipp are charged at £50 before VAT and income withdrawal funds can be set up for £175 with a £5 income payment charge. Income withdrawal fund triennial revaluations cost £175 plus VAT.
Managing director of retail investments Chris Fletcher says investment trusts typically carry lower annual management fees than Oeics. A £5,000 lump-sum investment into its flagship £1.3bn Scottish Mortgages global generalist trust would incur a 1.1 per cent annualised reduction in yield over a 10-year period, which is lower than the annual charge on most Oeics.
Fletcher says: “The Sipp market is likely to grow with Government simplification proposals in 2006 and increasing general awareness of the importance of saving for retirement.”