View more on these topics

‘Sipps already have mass market appeal’

Sipps are already mass- market pension vehicles, according to research by Hargreaves Lansdown.

The results challenge the view that Sipps are favoured by risk-taking investors, with more than a quarter of client money held on deposit.

Sipps are expected to spread to lower-earners after A-Day but Hargreaves Lansdown says there is evidence that this is alr- eady happening.

The firm says among its 5,382 Sipp clients, the average single-premium investment is 5,386 for men and 4,307 for women.

Transfer values are rel- atively low at an average of 23,596 for men and 15,901 for women.

Looking at a breakdown of assets held by the company’s Sipp clients, 52 per cent is invested in unit trusts and Oeics and 27 per cent is held in cash. Only 0.13 per cent is held in hedge funds while 15 per cent is invested in UK equities.

Head of pension research Tom McPhail says the study shows evidence of the outperformance of unit-linked funds compared with life funds.

The average fund in the IMA balanced managed, cautious managed and UK all companies sectors outperformed their ABI counterparts over one, three, five, seven and 10 years.

McPhail says: “We are pushing Sipps as a mass-market product and our average case sizes reflect this. We are saying as an Ipod is to a CD, so a Sipp is to a personal pension.”

Standard Life marketing technical manager John Lawson says Standard has higher average case sizes for its Sipp – nearer 200,000 – as it focuses on the transfer market.

Lawson says: “Standard is mainly taking transfer business from clients looking to go into income drawdown so the transfer values are much higher.”


Nationwide announces its new fixed rate mortgages

Nationwide is launching new lower rate fixed rate mortgages.The new rates are available from April 22 and reflect current movements in the money markets.The two year fixed rate is available from 4.95 per cent from its previous rate of 5.19 per cent. The three and five year fixed are available from 5.09 per cent from […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm