Donaldson says: “Those opting for the Pointon York e-Sipp will be offered a restricted range of investment options, at a lower cost, based on a prescribed investment methodology and process.
“There are five SmartFunds to choose from. Asset allocation within each of these funds is done at two levels. Firstly on a strategic basis, based on the clients attitude to risk. There will also be a tactical overlay to take advantage of short-term market trends.
The strategic asset allocation is determined by Barry & Hibbert. The client first completes an attitude to risk questionnaire in order to match to a suitable asset allocation. This will point to one of the five SmartFunds – defensive, cautious, balanced, aggressive and aggressive growth – which are purchased through the Praemium platform. The underlying funds within each SmartFund are selected by OBSR. These funds are automatically rebalanced to the appropriate asset allocation.
“For advisers that are looking to outsource the investment decision making process for individual pensions business to a third party, this is an option worth considering. If the client’s circumstances change and further flexibility or investment options are required, it is always possible to upgrade to Pointon York’s full Sipp at a later date.
“For advisers seeking to consolidate client pension monies, the e-Sipp can accept both protected and non-protected rights. The online functionality will enable clients to keep in touch with the performance of their e-Sipp portfolio.”