Rownamoor Group has launched a new single investment option for its post-April 2015 self-invested personal pension, FTAdviser can reveal.
The new option is designed to complement the bespoke full investment Sipp, by meeting the needs of clients who favour a simpler investment portfolio with lower fees.
The firm said the new single investment option was designed for clients looking to invest in a managed portfolio with a discretionary fund manager, stock broker, fund platform or a basic direct single investment, such as a bank or building society account, trustee investment plan or pension policy.
Robert Graves, head of pensions technical services, explained that the pricing structure was a lot more competitive than the full investment.
The set up fee for the new single investment Sipp is £100 compared to a Rowanmoor Pensions Sipp (full investment) at £325. The annual administration fee for the Rowanmoor Pensions Sipp (single investment) is £250 whilst the annual administration fee for the full Sipp is £480.
However, both offerings have no fee for an investment portfolio established with Sipp investment partners. The single Sipp has no fee for an investment portfolio established with non-Sipp investment partner and the investment portfolio established with non-Sipp investment partner for the full Sipp costs £50.
Mr Graves also said that over time the firm was seeing growth in the use of platforms as a way of investing, alongside discretionary fund managers using a variety of portfolios to get diversification through one source.
He stated that the addition of the single investment option was “a recognition that the market is moving more towards investment platforms and discretionary fund managers” as well as the “prospect of the new flexibilities adding the potential for more changes for people who may want to use the single investment instead of the full investment”.
Mr Graves commented that people may not take all their lump sum in one go, but may be more comfortable in a single investment Sipp to hold their fund until it becomes more tax favourable to draw out.
“We might well see beneficiaries who have inherited a fund - they may be more suitable to having a single investment,” he said, adding that only those products which qualify as simple investments will be allowed under the new wrapper.
ruth.gillbe@ft.com
