SIPPs and Structured Investment Products

Ryan

Hi,

I want to invest in the following Structured Investment product with Key Data through a SIPP.
http://kis.keydata.co.uk/Products/DGPP8/default.aspxI have a SIPP with Hargreaves Lansdown and am looking

It says on the literatute that the product is SIPPable, but my current provider (Hargreaves Lansdown) doesn't allow such holdings.

Would anyone know of a SIPP provider that does allow you to invest in such products?

Thanks

dunstonh

HL's SIPP isnt really designed for proper SIPP use. Its more of a fund supermarket pension with some direct investment opportunities.

Virtually all proper SIPPs would have no problem with what you want.

EdInvestor

By 'proper', you mean expensive.

What product is it, the link doesn't work.

dunstonh

proper doesnt mean expensive. It means not a cut down version like HL's. HLs SIPP isnt exactly cheap.

EdInvestor

Full SIPPs ( of the type that provide the full range of investment options including commercial property) typically charge a fee of 500 quid a year or more.

HL has no charge.

How is it expensive?

Grashnak

Drop the final 'I' from the link and it goes through: http://kis.keydata.co.uk/Products/DGPP8/default.aspx

dunstonh

HL has no charge.

How is it expensive?

HL has no charge if you use investment funds because they get paid 0.5-0.75% p.a. trail commission. If you dont use investment funds then HL has charges. £200 plus VAT p.a.

Plus it appears they put restrictions on what you can hold in the SIPP which basically makes it very expensive because you are paying for something that doesnt do the job.

EdInvestor

dunstonh wrote: »

HL has no charge if you use investment funds because they get paid 0.5-0.75% p.a. trail commission. If you dont use investment funds then HL has charges. £200 plus VAT p.a.

200 plus VAT is the maximum charge.List of charges below:

http://www.h-l.co.uk/our_services/sipp_charges.hl

I can't understand why the OP would want to invest in that product which is expensive rubbish.

purch

200 plus VAT is the maximum charge

Yeah they charge me £19.58 a month.........:eek:

......I would have stuck to using Funds but they are so boriiiinnnnggggg :cool:

jamesd

Ryan, you might consider looking at these alternative options:

BlackRock UK Absolute Alpha, over 6 years if last year repeated, 91% growth.
CF Arch Cru Investment Portfolio (see details), over 6 years if last year repeated, 62% growth.

They don't lock you in but do provide nice stable growth. Their stability probably provides better capital protection that the product you're looking at, particularly if there's a stock market drop below 50%, when the product you're considering loses its protection. Neither is primarily based on standard stock market investing.

Add in something like Invesco Perpetual Income and Neptune Global Equity to provide more stock market growth if things go well and rely on the first to to protect the capital if the markets do terribly. For example, you might consider:

30% BlackRock UK Absolute Alpha
20% Cru Investment Portfolio
20% Invesco Perpetual Monthly Income Plus
20% Invesco Perpetual Income
10% Neptune Global Equity

That's just a fairly simple example to show you how you set the proportions of the different investments so that the stable growth ones mean you won't lose capital if the less stable ones lose all of their money (which is really unlikely - those two examples are some of the best around). You can vary the proportions at any time to reflect how you think the stock markets look and how much protection you want.

Because there are four different fund companies involved you also get several lots of FSCS protection, one for each company. This does not protect you from investment performance risk, just bankruptcy or Northern Rock types of events.