Type: Full self-invested personal pension
Minimum investment: Lump sum 10,000, 300 a month, 3,000 a year
Investment choice: Core investments – FundsNetwork mutual funds range, Sipp bank account, Standard Life investment policy funds, non-core investments investment trusts, direct equities, fixed-interest securities and all other Inland Revenue permitted investments including commercial property
Options: Drawdown facility, discretionary management option offering choice of Cazenove, Tilney, Morgan Stanley Quilter, Gerrard, Newton or Brewin Dolphin
Charges: Initial 100 for investments solely in core investments otherwise initial 290 plus up to 5% additional initial charge depending on initial IFA commission taken, annual 250 for investments solely in core investments otherwise 400, 120 for withdrawals plus transaction and dealing charges on non-core investments and additional costs for property
Commission: Initial up to 5%, fund-based renewal up to 0.5%, funded commission up to 3%
Special offer: No initial or annual charge in first year for clients initially investing at least 60,000 solely in core investments
Offer period: Until further notice
Tel: 0800 023 4141
Fidelity FundsNetwork has teamed up with Standard Life to establish the FundsNetwork self-invested personal pension.
This is a full Sipp offering investors the option of investing in core and non-core investments. Core investments include FundsNetworks range of over 1,000 investment funds, Standard Life insured funds and a Sipp bank account. Non-core investments cover everything else that the Inland Revenue allows to be held within a Sipp. This includes investment trusts, direct equities, fixed interest securities, warrants and convertibles traded through execution-only stockbroker Stocktrade.
Informed Choice director Martin Bamford points out that this new Sipp product takes on board the existing expertise of the Standard Life Sipp product and offers investors access to the range of FundsNetwork funds at a competitive cost. The ability to invest in the full range of permitted investments, with mutual funds as a starting point from a cost perspective, is appealing, he says.
However, Bamford has more to say on the possible drawbacks of the Sipp The minimum level of single payment, at 10,000, doesnt offer the level of flexibility you would expect from a modern and cutting edge Sipp product. This is likely to put off investors who wish to make ad-hoc pension contributions throughout the year, particularly some self-employed clients who set base their pension contribution decisions on profitability rather than a regular flow of cash, he says.
He feels the 300 per month minimum for regular contributions is pitched at a better level as this will discourage smaller investors who would not find a Sipp a cost-effective retirement planning vehicle.
Scanning the market for likely competitors Bamford says: The Sipp marketplace is already competitive and it is likely to see the introduction of a wider range of products, both pre- and post A-day. The Sipp from Selestia, with Hornbuckle Mitchell, will certainly provide competition.
Summing up Bamford says: A competitive charging structure, particularly for core investments in mutual funds on the FundsNetwork platform, and the expertise of Standard Life. will make this a compelling Sipp proposition as the popularity of the Sipp as a retirement planning tool continues to gather pace.
Suitability to market: Good
Investment choice: Good
Adviser remuneration: Average