Pensions investing

Many pension investors have become very disillusioned with the packaged investment solutions from Insurance companies.

With Profits funds continue to deliver poor results and Insurers own managed funds are generally below average performance and are not sufficiently diversified.

For smaller funds (under £50,000) we can use a couple of solutions:

Lifestyling

Monies are automatically switched from higher growth/higher risk equities through managed funds into cash and fixed interest as clients approach their intended retirement age. Although not perfect this is the best low maintenance option for smaller funds.

Small portfolios

Most insurers now offer a reasonable range of funds including external funds from good Investment Management firms. We can therefore create a portfolio tailored to a clients risk profile using the best available funds.

The only downside is that on-going monitoring and rebalancing is normally not included and needs to e separately requested and paid for or you need to opt for one of our service plans.

Medium portfolios (£50,000 to £250,000)

For this size of fund you can use Self-invested personal pensions (SIPPs) even if direct property investment is not required. A SIPP is where the pension’s legal status and administration is separated from the investment. So unlike a traditional Insurance company plan where the whole plan is packaged together, you pay a fixed fee for the set up, tax relief and administration and then choose the investments separately. The range of options before 6 th April included collective investments e.g. Unit Trusts, Investment Trusts and OEICs, shares listed on recognized stock markets, Fixed interest securities, bank deposits, commercial property and land, futures and options and traded endowments. After April unlisted shares will be allowed and when they become available Real Estate Investment trusts (REITs).

We can use exactly the same disciplines and research as our main investment portfolios and apply this to the pension funds. The SIPP approach makes it easy to obtain valuations and switch between funds, as necessary.

Large Portfolios (£250,000+)

Again a SIPP wrapper is most appropriate but more direct investments may be considered and the use of a discretionary manager.

For Investors with both SIPP accounts and Investment portfolios we can usually use a single platform for all your investments allowing us to provide a full wealth management service. This can also be part of our holistic financial planning service.