GE Life is to launch a discretionary Sipp management service in mid-November for pension investors w...
GE Life is to launch a discretionary Sipp management service in mid-November for pension investors with at least £250,000 to invest.
Mike Jackson, head of national accounts at GE Life, said the group has screened 105 discretionary managers down to a list of four that could monitor and manage a client's Sipp portfolio, with the exception of commercial property investments, on a discretionary basis.
The four managers chosen by the group are Cazenove, Quilters, Rathbones and Tilney Asset Management.
'There is clearly a market for self selection but the discretionary fund management option is also increasingly possible,' Jackson said.
Total charges for using the managers vary according to the team chosen and the amount the investor puts in.
Customers using Cazenove and investing up to £500,000, for example, pay 1.4% annually, while those using Rathbones and investing more than £1m pay 0.6%. As these are the sum totals intermediaries pay for the service, including dealing charges, advisers are then free to organise charges for their own clients.
Jackson pointed out investors may incur costs for transferring assets into the discretionary Sipp.
The discretionary managers are free to allocate money beyond their own house's respective funds, Jackson said, and can then take on the compliance and regulatory risk.
An initial meeting between the intermediary, their client and discretionary manager can be followed up by annual portfolio and client reviews with the discretionary managers. Investors can choose one discretionary manager or split their portfolio between any of the four.
Steve Conley, head of marketing and development of investments and pensions at James Hay, said he can see a growing need for discretionary Sipp management.
He told the seminar: 'Within the Sipp arena, there will be an increased focus on the high net worth market and a consolidation in distribution.'
For more information, contact GE Life on 01462 422 422.
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