Standard Life has ditched its self-invested personal pension (Sipp) in favour of a Sipp that has external fund links and a more flexible commission structure.
This hybrid Sipp provides access to 20 internal funds, including property, UK fixed interest and ethical funds. Although the previous version of the Sipp allowed investment in any type of investment allowed under the Inland Revenue rules, it did not provide access to a specific range of external funds.
This version of the Sipp provides access to eight external funds, from fund managers including Deutsche, Fidelity and Gartmore, so investors can spread their investment across different fund managers without having to find funds elsewhere.
Advisers can tailor the charges and commission structure to their client's needs within a set range, whereas the previous Sipp was only available on an initial charge basis.
The Sipp is likely to appeal to high net worth clients who want to exercise control over investment choice. People with small businesses who want to use their Sipp money to buy their business premises could also find this Sipp of interest, However, they should be aware that if the business fails, this will have a negative impact on their pension fund, especially if the business has to be sold and the timing is wrong.
According to Standard & Poor's, four Standard Life funds are first quartile, seven are second quartile, three are third quartile and one is fourth quartile based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to April 29, 2002. There is no three-year past performance for the remaining five funds.