Should I change SIPP provider?

Simpo5861

Hi everyone. New member. I took advice from an IFA and pooled two pensions into a Standard Life SIPP three years ago - with their Myfolio pension fund  as the sole investment. Gradually I started adding my own additional investments, which performed much better than Myfolio's steady but slow gaining slogger.  This year the IFA dumped me when their company chose to focus only on 'high value investors', meaning I was left without an advisor. By this year (7-8 years off retirement, covid permitting!) my original investment had doubled, mainly because of my own investment choices. I finally grew impatient with Myfolio and shifted the whole lot into Vanguard Lifestrategy 40 (hoping that is a good move!)... This means that I've still got a Standard Life SIPP but no remaining SL investments. I do like their website for ease of use, updates and ease of shifting funds etc, but get the feeling that their charges aren't always the cheapest. Should I look at moving everything over to ii or fidelity, perhaps, just moving the VL investment to a Vanguard SIPP, or stick with the devil I know? And is it a decent spread of investments now? Any advice more than welcomed. 

dunstonh

I do like their website for ease of use, updates and ease of shifting funds etc, but get the feeling that their charges aren't always the cheapest.

Standard Life have 4, possibly 5 SIPPs.    The charges Standard Life Elevate is competitive and whole of market with no insured funds available on it.   The Standard Life Wrap platform is not priced as well as Elevate.     Then they have a couple of SIPP versions that are effectively personal pensions with SIPP functionality bolted on.  This allows their insured funds to be used.    These can be cost-effective when using their low-cost funds but not so when using external fund houses.  Special terms are often available on some of these depending on the adviser firm.

Should I look at moving everything over to ii or fidelity, perhaps, just moving the VL investment to a Vanguard SIPP, or stick with the devil I know?

If you are only using Vanguard then Vanguard will be better.   However, the VLS funds are not the best available (that is opinion, some will claim otherwise).   So, you could be looking at saving 0.0x% p.a. whilst costing yourself more than that.    The whole of market platforms may cost a bit more but they give you the choice to use other fund houses.    Fidelity may be more expensive or comparable to the Std Life SIPP depending on which version you have and the terms agreed.

Simpo5861

Yes. I know one big disadvantage of Vanguard is their SIPP only allows Vanguard investments. I'm not looking to buy more, just sticking with VLS40 (might switch to 60 later on, perhaps). That is my 'safe' investment. The others are riskier but perform much much better. Or have done for me. I have the Standard Life Active SIPP, which isn't quite whole market but does give a huge range or insured and mutual funds. The charges on VLS40 are much lower than my old Myflio. I'm not entirely sure what the core SIPP charges are now that I've  changed funds, though, and comparing like for like is far from easy  

Albermarle

For a retail investor the SL SIPP level 2 means you have a wide choice of funds ( 2000?) but no ability to buy shares ;ETF's or Investment trusts . So less choice than Fidelity or II and a bit more expensive. Vanguard Investor would also be cheaper but only Vanguard products available.
However I think you have already spotted a more important issue in that some of the SL managed pension funds are rather stodgy performers. I think mainly because too high UK%

Alexland

Simpo5861 said:

I'm not looking to buy more, just sticking with VLS40 (might switch to 60 later on, perhaps). That is my 'safe' investment. The others are riskier but perform much much better. Or have done for me.

VLS40 safe from what? With such a high proportion of bonds the daily volatility might be lower but the long term risks caused by interest rates and inflation seem higher than VLS60.

Simpo5861

safe as in an unremarkable but solid performer, as opposed to some of my other funds (and my ISAs too) are more volatile in the short and sometimes longer term. But I suppose my thinking was go VLS40 for now and review down the line to maybe shift to VLS60. I might compare them again though - thanks. 

Alexland

Simpo5861 said:

safe as in an unremarkable but solid performer, as opposed to some of my other funds (and my ISAs too) are more volatile in the short and sometimes longer term. But I suppose my thinking was go VLS40 for now and review down the line to maybe shift to VLS60. I might compare them again though - thanks. 

Going 60% bonds would be brave as like most asset prices they are very sensitive to interest rate rises (and the recent gains have been on the back of interest rate reductions - imagine that process working in reverse) so while in the short term equities might be equally affected they have the ability to earn back any reduction from their enhanced growth potential. With bonds if interest rates increase from near zero you are left nursing a headache with not much prospect of recovery. If you really only want to have 40% equities it might be worth diversifying further with the 60% other using gold, cash, etc.

Albermarle

I'm not entirely sure what the core SIPP charges are now that I've  changed funds, though, and comparing like for like is far from easy

Just call them and ask .

Simpo5861

Albermarle said:

I'm not entirely sure what the core SIPP charges are now that I've  changed funds, though, and comparing like for like is far from easy

Just call them and ask .

Will do. I do know I'm no longer paying £60 a month adviser charge after being jettisoned. 

Simpo5861

monthly admin charge 0.5% (reduced by 0.05). Then individual investment charges, which vary. 

Albermarle

Other SIPPS charge from 0.15% to 0.45%. Or if you were talking about a £100K+ you could look at a fixed price sipp which would work out cheaper still. 
The fund cost ( for VLS 40 for example ) should be the same for all of them. 
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