Yorsipp has selected BirthStar Target Date Funds to enable an ‘auto invest’ self-invested personal pension option, which goes live today (22 June).
The option is available across the whole of the firm’s product range, with members signposted to a range of funds labelled by the date range they expect to retire.
Yorsipp’s ‘auto invest’ option is designed to set a new standard of investment governance and due diligence with the Sipp trustee acknowledging their duty of care to ensure all investment options are suitable for members.
The funds are available to trustees through the recently-launched Axa Wealth Trustee Investment Plan, with the range is managed by AllianceBernstein.
The Sipp wrapper costs start from £175, plus Vat and a 0.8 per cent annual total expense ratio for the managed portfolios and trustee investment plan.
Yorsipp said that customers can also benefit from holding their other self-invested assets within the same wrapper using a modular approach, which could include investment platforms, discretionary portfolios, stockbroking accounts and UK commercial property.
The firm added that a 55 year-old expecting to retire in ten years time could select the BirthStar 2021-25 Target Date Fund and hold on to it thereafter, pending an active choice around decumulation options.
The fund progressively moves from a growth portfolio towards a more cautious portfolio, as the target retirement date approaches. Once the target date is reached, the portfolio remains cautiously managed across a broad range of asset classes, offering a a ‘through-retirement’ multi-asset strategy.
Mark Canning, head of business development at Yorsipp, said that there has been a continued call from the regulator for Sipp operators to raise their game.
“Sipps are trust-based arrangements and as such the Sipp trustees have a clear duty of care to their members. This, and the new pension freedoms, means that there is now, more than ever, a greater need to focus customer choices around properly government investments that focus on outcomes.”