Stockbroker Killik & Co has established a self-invested personal pension plan (Sipp) that aims to make Sipps accessible to clients with smaller amounts to invest.
The Killik Sipp is a full Sipp that has a one-off set up charge of £100 and no annual management charge. Unlike some Sipps, this plan does not limit fund links to any specific fund manager or specify a minimum investment. However, the set up charges and dealing costs of £40 a day means it is not worthwhile for investments of less than £5,000.
Investors and their advisers can create their own investment portfolios to meet their individual requirements. This means the investor can choose from any investment that is allowed under Sipp rules and this includes investment trusts, Oeics, unit trusts, fixed interest securities, insurance company funds and commercial property.
Some Sipps are aimed at company executives and have high minimum investments in the £100,000 range. Other Sipps at the lower end of the market are offered on an execution only basis through the internet. The Killik Sipp fits into the gap between them and could attract interest from the self-employed.
AJ Bell's Sipp is a similar Sipp that has no annual charge. Like the Killik Sipp, it does not specify a minimum investment, although investments need to be at least £5,000 to make it worthwhile. It does not limit investment choice, so its flexibility is as good as the Killik Sipp. However, it has a monthly charge of £35 and at £375, the set-up fee is higher than the Killik Sipp.