HL Sipp platform

Credit-Crunched

Hey all,

Looking at transferring my company pension (being made redundant and would like more flexibly with investment options)

Any one got any experience with HL SIPP's seem pretty reasonable on fees etc, what is their gui like when you have an account?

Will be just to transfer a lump sum in as new company DCS will be receiving my monthly payments.

Cheers

gadgetmind

HL's platform is about the most well-featured and user-friendly there is, and their customer service is excellent.

However, you need to take care with fees.
1) They don't refund any trail commission on funds in a SIPP. For holding funds, there are better platforms such as BestInvest and Fidelity.
2) HL charge 0.5% pa (capped at £200) for holding equities and ETFs in a SIPP.
3) They also have £2 per trackers pcm fees for most trackers. This makes them an expensive place to hold multiple trackers but a *great* place to hold a single Vanguard Lifestrategy tracker.

The big caveat to all of this is that new rules will change the fee structure of all platforms over the next 12 months,

My wife has a new SIPP starting with HL and is going to use a single Vaguard LS tracker. We're going to use LS 100% equity with our own property and fixed interest alongside, but LS 80% is a great option for "buy and forget".

xylophone

What kind of pension is your old pension?

Credit-Crunched

xylophone wrote: »

What kind of pension is your old pension?

Just a standard DCS pension, built up a fund of around 15k, I have an older pension of about 3k with another company so want to lump them together and put them into more adventurous funds than the provider (towers watson) offers

gadgetmind

Credit-Crunched wrote: »

put them into more adventurous funds than the provider (towers watson)

I hope you DYOR regards risk/reward, asset allocation, etc.

It's really easy to get this stuff wrong.

Credit-Crunched

gadgetmind wrote: »

I hope you DYOR regards risk/reward, asset allocation, etc.

It's really easy to get this stuff wrong.

I will do

i am looking at

Aberdeen emerging markets

jpm natural resources

invesco latin american

Linton

Credit-Crunched wrote: »

I will do

i am looking at

Aberdeen emerging markets

jpm natural resources

invesco latin american

Couple of questions: Do you have significant other pension investments? Are you a long way from drawing your pension?

Unless you can say yes to both questions I think you could benefit from better diversification. The funds you mention are pretty volatile and do have significant commonality. Miners and drillers can be among the largest companies in emerging countries and so with your Natural Resources fund you could be over exposed to those sectors. Also from the fund's details on Trustnet, Aberdeen EM invests more in Brazil than in any other country.

If you just want to invest in major funds you may find cheaper options than a SIPP - many simple personal pensions offer a good range of investments.

Credit-Crunched

Linton wrote: »

Couple of questions: Do you have significant other pension investments? Are you a long way from drawing your pension?

Unless you can say yes to both questions I think you could benefit from better diversification. The funds you mention are pretty volatile and do have significant commonality. Miners and drillers can be among the largest companies in emerging countries and so with your Natural Resources fund you could be over exposed to those sectors. Also from the fund's details on Trustnet, Aberdeen EM invests more in Brazil than in any other country.

If you just want to invest in major funds you may find cheaper options than a SIPP - many simple personal pensions offer a good range of investments.

Hi thanks for your views, I have savings in numerous cash based ISA wrappers.

I also have a pension with my new employer paying around £10k NET per year into it, I am 31 so a long way off.

I also pay into a Halifax share builder to ensure I top up my ISA for the year again in varying shares, vodafone, bp, and some aim shares if they are dual listed.

What funds would you look at recommending to diversify a little and remove the developing and mining over exposure?

Cheers

gadgetmind

I suggest you maybe visit the HYP boards on Motley Fool for the high yield share side of things. Perhaps also buy a copy of Smarter Investing by Tim Hale to understand how to construct a reasonably robust portfolio of diverse assets.

jamesd

When compared to Invesco Perpetual High Income the first HYPe portfolio substantially under-performed the managed fund. HYPe is a nice concept but the results for at least the first don't support it being a good idea compared to the other choices out there. That's a shame because it is an attractive concept.

HYPe is one of the concepts that Motley Fool brought over from its US site, where there is a higher capital gains tax on holding things for less than a year and where fund holders are taxed each year on the capital gains of he shares sold by the funds they hold. The result of those two things is a significant incentive for US investors to use a buy and hold approach. The UK doesn't have a higher CGT for holdings up to a year and doesn't tax you on trades within a fund, just on the gain when you sell the fund itself.

gadgetmind

jamesd wrote: »

When compared to Invesco Perpetual High Income the first HYPe portfolio substantially under-performed the managed fund.

It underperformed "a" managed fund, one that has performed far better than its peers in the past. Could this have been predicted at the time?

HYPe is a nice concept but the results for at least the first don't support it being a good idea compared to the other choices out there. That's a shame because it is an attractive concept.

Lots of HYPers have done very well with their own portfolios and similarly many other high-income managed funds suffered from heavy capital losses.