Standard Life – Sipp
Type: Hybrid Sipp
Minimum investment: Lump sum £10,000 income drawdown
Investment choice: Corporate sterling, long corporate bond, corporate
structured, corporate property, corporate UK fixed interest, corporate
linked, corporate protection, corporate managed, corporate ethical,
corporate stock exchange, corporate UK equity select, corporate
overseas, corporate UK equity, corporate European, corporate North
American, corporate Japanese, corporate Pacific Basin, corporate
Overseas fixed interest, corporate FTSE tracker, corporate global
equity, global selector, UK smaller companies, Deutsche managed
portfolio, Fidelity South East Asia, Fidelity special situations,
Gartmore European selected opportunities, Newton managed and
Threadneedle American select growth
Administrator: James Hay
Charges: Initial up to 3%, annual up to 2.55%
Allocation rates: 100%
Commission: Initial up to 3%, renewal up to 0.5%
Keith Lewis – Principal, Hartley Greatbatch
Brandon Harford – IFA, Howell Shone Ifa
Chris Boylan – Principal, Chris Boylan IFA
Richard Evans – Investment adviser, Johnston Carmichael Financial
Investment options: 6.5
Companys reputation: 8.4
Past performance: 6.1
Product literature: 7.3
Standard Lifes Sipp is a hybrid product allowing
investment into a range of internal and external funds.
Looking at how the plan fits into the market, Lewis says: "I
suspect that a lot of life offices such as Standard Life are either
re-assessing or launching new contracts and re-pricing contracts.
The market is becoming very competitive as life offices look for
market opportunities to make healthy profits and returns as opposed
Harford thinks that the plan offers a cost effective option within the
marketplace, while Boylan says it appears to be competitive.
Evans says: "It is useful to be able to offer a Sipp that
trades on the good Standard Life name, but avoids their sluggish
equity and managed funds."
Moving on to the type of client the plan is suitable for, Harford says:
"Clients with reasonable levels of pension funds looking
at wide investment opportunities that include commercial
Evans thinks it will appeal to reasonably well off clients looking for a
bespoke solution to their retirement planning.
Boylan says: "A client who wants more than a basic
personal pension, requires wide investment options and may wish to
purchase other investments including business property, but who
also wants the reassurance of dealing with a big-name
Lewis says the product will appeal to clients at the top end of the
market. He thinks the investment range will be attractive as
with-profits become less popular.
Considering the marketing opportunities provided by the plan,
Harford can see nothing other than the company name that will be
useful here. Boylan agrees that the Standard Life name will help.
Lewis says: "There is an increasing market as clients
generally grow older. They are therefore possibly more sophisticated,
and with the demise of with-profits and life office funds in general,
they will be looking for a wider choice."
Evans thinks the inclusion of corporate funds within the options
available will create opportunities.
Casting an eye over the useful features and strong points of the plan,
Boylan identifies the company name and the prospect of good
technical backup. Lewis lists wider choice, lower premiums and the
fact that the company name is well-known.
Evans says: "Good brand, better fund choice than the
basic Standard Life pensions, some useful fund links."
Harford likes the low costs, the choice of funds and the involvement
of James Hay on the administration side.