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LV= launches 0.25% AMC Sipp option

LV= has launched a low cost Sipp with an annual service charge of 0.25 per cent.

The new product offers investors the choice of 130 funds from 16 fund managers.

LV= head of pensions Ray Chinn says: “With regulatory scrutiny on clients incurring unnecessary Sipp charges we are pleased to be able to offer this simple, clear, low cost option within our wider Sipp wrapper.

“We appreciate that some clients want a no-frills, straightforward personal pension, and the wide range of investment funds available means that advisers can easily tailor the plan to suit their client’s risk appetite.”

The AMC on the first £1m invested in the low cost Sipp option is 0.25 per cent. This falls to 0.1 per cent for any amount above £1m.

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Its not really a SIPP now is it?

    Its a glorified DFM account.

  2. In LV’s defence the article does state… “low cost option within our wider Sipp wrapper”. So the SIPP option is still available I believe.

    Thought it probably doesn’t help them that there’s a nice SIPPcentre advert on the page. Which includes dogs. Everybody likes dogs. If i had a dog i’d transfer my pension to SIPPcentre.

  3. When is a SIPP not a SIPP – when its a personal pension!

  4. You need to invest £20,000 into a fund with LV. What is that being charged at 1%? = £200 plus .25% on total Valve so if fund was £250,000 charge is £625 + £200. Is this good value?

  5. Having read through their product specs it’s £20,000 transfer/single premium to “qualify” for the 0.25% ‘wrapper’ charge. There’s no minimum amount required per investment fund.

    The fund AMC’s range from 0.1 up to 2%. A decent portfolio could be constructed from 0.4. Probably ideal for £20k-£75k. Anything above £250k I’d be looking to go DFM anyway.

  6. i agree it is poor value for pension funds over £75,000 a sterling flat rate charge such as sipp centre offers a better deal.

  7. Agree that other wrappers may appear to offer better value, but worth checking fund costs. LV= does not retain rebates as is the case with some other SIPP providers, meaning our funds are often considerably cheaper (usually 0.75% amc for equity funds) than is the case with other SIPP providers. End result can be a cheaper overall charge (wrapper plus investments). Not always the case – but worth a look…?

  8. I like the cut of your jib Mr Chinn, but unfortunately since my last comment on the 13th of February I have become the proud owner of a dog, called Steve. He is very much like the Great Dane pictured on the SIPPcentre advert thus I shall be transferring my pension there.

    In future if your marketing material could include pictures of dogs, instead of old people holding tennis rackets looking like they’ve had a stroke, I would almost instantly want whatever product the dogs were endorsing & find them much easier to sell to my clients. Everybody loves dogs.

  9. Ray – your funds are cheaper because they are not the actual funds, they are an insured version! If I pick an LV version of the fund and compare against the ‘real’ fund there is a performance drag – which quite often results in a very expensive overall cost to the client.
    Is this really a simple, clear, low cost option when you hide the charges within your insured version of funds????

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