Type: Full self-invested personal pension
Minimum investment: Lump sum 10,000
Investment choice: Jupiter only Sipp all Jupiter unit trusts, full Sipp first 10,000 in Jupiter unit trusts with remainder in all Inland Revenue permitted investments including commercial property
Charges: Establishment charge 130, Jupiter only Sipp annual 350, full Sipp 420, full Sipp transaction
charges up to 35 per trade, additional charges for property investment
Commission: Initial 3%, renewal 0.5% on Jupiter investments, other investments negotiable
Tel: 020 7314 7699
Jupiter has revamped its Sipp, changing the third party administrator from IPM to Suffolk Life.
Aquila Financial Management managing director Nigel Hemming says: “Suffolk Life has an enviable reputation for administration so the Jupiter Sipp should run smoothly. The set up costs are very reasonable. But the annual cost is on the high side for equivalent Sipps.”
Hemming believes there will be a demand for the Sipp, although the competition will grow if the insurance company platforms develop. He says: “This segment of the market is only ever going to be an investment Sipp. Will it cope with the new range of pension investments under the new post-April 2006 regime?”
Hemming thinks the language and explanation in literature is clear and that publishing the provisions and rules is a definite plus. But he is disappointed not to see any reference to the April 2006 changes and would like to see more comprehensive terms used on the application form.
Considering the potential drawbacks Hemming says: “The post-April 2006 regime could require very different features. This Sipp offers a platform for aggregating and building pension funds but within a limited range of pension investment. For some clients this could be fine but a core will be needed to select suitable clients.”
He also points out that if the market is to develop as expected, it would be good to see more comment on transfers and the administration of the pension.
Hemming concludes that any of the Sipp platform providers will provide competition, with the difference being the costs and the administrative resources.
Suitability to market: Average
Adviser remuneration: Good