Pensions  

Liberty Sipp’s AUM grows 87% over the year

Liberty Sipp’s AUM grows 87% over the year

Self-invested personal pension provider Liberty Sipp’s assets under management have grown by 87 per cent over the 12 months to April.

The Manchester-based company now has £815m under management and has seen a 30 per cent increase in client numbers on the same time last year, administering more than 6,000 Sipps.

In the 12 months to April, the provider opened nearly 1,800 new Sipps and the firm’s management has predicted it will reach £1bn under management by mid-2016.

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All of the firms 1,800 new clients are using their sipps exclusively for standard investments.

The provider offers only one product, the Liberty Option Sipp, which was introduced in 2013 and charges an annual management fee of £150 plus value added tax.

Liberty Sipp worked with more than 350 financial adviser firms - a 25 per cent increase over the year.

Matthew Rankine, director of sales and marketing at Liberty Sipp, said: “Liberty Sipp’s steady growth in both client numbers and assets under management should see us break the £1bn barrier within a few months.

“Our first billion will be an important milestone for us. But while we may cease to be seen as a ‘small’ pension provider, we’re determined to keep the personal touch that has always been a Liberty hallmark.”

In June last year, Liberty Sipp froze the annual management charge on its Options product at £150 plus VAT for the third year in a row, and stated it would continue the practice until at least April 2017.

According to John Fox, managing director for Liberty Sipp, this was part of the provider’s commitment to win clients.

Robert Lewis, director at Flintshire-based Heritage Financial Solutions, said Liberty Sipp’s success comes down to the fact clients crave simplicity and transparency.

He said: “Liberty is famous for the fact its charges fit on a piece of paper that is the size of a business card.

“In an age where we have pension freedoms it makes sense that a low cost pension provider with easy to understand charges and a simple proposition is going to thrive.

“We’ve used them a number of times and have been impressed with their good customer service. I only hope this continues as they grow.”

ruth.gillbe@ft.com