Selestia has entered the self-invested personal pension (Sipp) market in a joint initiative with Sipp provider and administrator Hornbuckle Mitchell.
The product is a full Sipp that provides access to Selestia's fund platform and all investments allowed for Sipp investment under Inland Revenue rules, including commercial property. Selestia will be responsible for the investment funds side of the arrangement, while Hornbuckle Mitchell will deal with the other aspects, including commercial property investment and administration.
The Sipp is being aimed at the middle market, so its charges are not as high as Sipps such as the Aon Sipp, but are more expensive than low-cost online Sipps such as the Raymond James Sipp.
With the Selestia and Hornbuckle Mitchell Sipp, there is an initial charge of £210 and an, annual management charge of £390. Additional charges are made for property purchase and a £25 charge is made for each investment transaction up to a maximum of £250 a year. The minimum investment of £2,500 is also low compared with many Sipps - for example, Teather & Greenwood's Sipp has a minimum investment of £75,000.
This Sipp could appeal to its target market since it combines the investment expertise of a fund supermarket with the Sipp management experience of Hornbuckle Mitchell. However, some IFAs such as Hargreaves Lansdown offer their own in-house Sipps to clients and would be unlikely to recommend this instead.
For smaller IFAs with less experience of the Sipp market, the Selestia and Hornbuckle Mitchell offering could be useful. But some IFAs believe Selestia's fund supermarket will be heavily promoted to clients and say it does not offer as many funds as rival fund supermarkets such as Cofunds.