group offering intermediaries up to 25% of sipp annual management fee as commission
Teather & Greenwood Investment Management (TGIM) has launched a Sipp offering intermediaries up to 25% of its annual management fee as ongoing commission.
Investors in the Sipp, launched in partnership with Wolanski & Co and Abbey National subsidiary Cater Allen Bank, are each allocated a fund manager to oversee their investments.
The manager is drawn from a team of 30 at the group, headed up by senior fund manager Jonathan Hill, unless the portfolio is to be run by the introducing intermediary.
The annual management charge on the Sipp is 1% on funds up to £500,000, 0.7% for funds between £500,000 and £1m, 0.5% for funds between £1m and £2m and 0.35% for funds over that level.
Transaction charges are 1.25% up to £15,000, 0.5% for funds between £15,000 and £50,000 and 0.25% for transactions above £50,000, with agents taking a 20% share.
The Sipp also carries a £400 annual wrapper fee and a one-off £300 set-up fee, although these charges are reduced for group business with three or more members.
There is no official minimum investment, although TGIM anticipates a minimum starting capital of £75,000 will be advisable. And there is no limit on contributions, which can be paid for either by standing order or lump sum. All contributions are income tax exempt.
A drawdown function is included in the Sipp and investors can take a 25% tax-free lump sum on retirement. If drawdown has not been enacted at death, the Sipp falls outside of the investor's estate for inheritance tax purposes.
Investment options for the Sipp include equities, fixed interest securities, warranties, convertible securities, futures and options, authorised unit trusts and depository interests.
Sipp holders and their intermediaries can trade and monitor investments online using the Teathers-i-deal system.
The 30-strong team of managers at TGIM is backed by a team of 25 in-house research analysts. As well as offering a number of in-house Oeic funds including John Sweet's UK Smaller Companies fund, the group has specialist expertise in UK small-cap and AIM-listed stocks, as well as a fully developed global equity and fixed income capacity.
The group opted to work with Wolanski because it offers low administration charges, according to Harriet Brooke, marketing business development manager at TGIM.
She said: 'Other fund administrators charge an admin fee in addition to the stockbroking charge for every transaction made but Wolanski does not.'
In addition to two free transfers of funds into the account, this cuts down the cost of the Sipp and makes it a competitive option, she added.
This enables investors to consolidate various pension plans into the TGIM Sipp without incurring charges, Brooke noted. Subsequent fund transfers into the Sipp incur a £75 fee.
TGIM sees Sipps as a potentially large market, as many investors have been disappointed with the various pension plans currently on offer and the TGIM Sipp is transparent and flexible, according to Brooke.
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