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PAL Sipp & Brooks Macdonald Asset Management

balooney2000
balooney2000 Posts: 80 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Pensions, annuities & retirement planning
An IFA has recommended transfering my Std Life Pension pot ca £50k into a PAL Partnership SIPP invested through Brooks Macdonald Asset Management using their managed Portfolio Service. The fees however are quite high 3% initial to IFA, 1% to BM and then onwards: 1% management charge with an additional 1%pa going to the IFA (as I had intended to take their full client service). Can anyone comment on this method of investing funds in a SIPP wrapper and in particular has anyone got any experience of Brooks Macdonald or the PAL Partnership SIPP ?

Many Thanks
«1345

Comments

  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    It's expensive and the names you mention are not well known.

    What is the investment plan?
    Trying to keep it simple...;)
  • balooney2000
    balooney2000 Posts: 80 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    The money is to be invested in a lower risk profile managed portfolio service fund of funds the detail of which is as follows.
    Current Asset Allocation
    Fund, P’cent, Sector
    Invesco Perpetual High Income (inc) 7.0% UK
    Jupiter Income 7.0% UK
    Barcap - UK Acc Growth II 7.0% UK
    Citigroup Autocall VI 5.0% Eu
    Harewood Global Enhanced 6.0% Int
    Barcap - S&P 500 125% 5.0% US
    Standard Life Select 5.0% Property
    New Star International Property 5.0% Property
    Henderson Strategic Corporate Bond I 7.0% Int FI
    Artemis Strategic Bond 8.0% UK FI
    Fidelity Money Builder Income 6.0% UK FI
    Absolute Return Trust 10.0% Hedge
    ML Stepped Income & Growth 6.0% SR
    Bar Cap Euro Ladder 6.0% SR
    Cash 10.0% UK
  • Retired_I.F.A.
    Retired_I.F.A. Posts: 863 Forumite
    The SIPP is run by the hole in the wall gang but who is the IFA Eastwood, Wayne, or Van Cleef ?
  • balooney2000
    balooney2000 Posts: 80 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hi. They are the setting up charges for the Managed Portfolio Service SIPP. If I went direct to Brooks macdonalkd Asset management they'd charge a 4% st up fee.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Have you checked which of these funds are available in your existing St Life pension? I think you'll find many of them are available, and thus all you would need to do is switch the money over to the new funds within the same pension , which would cost you nothing.

    Here's the full list of StL pension funds

    It starts at no 4990. Over the page you'll find Invesco Perpetual High income ( top fund on the new suggested list) at no 5096. Many other quality funds there.

    Now I wonder why your IFA isn't suggesting that you just rearrange the investment within the existing pension? Could it be because he would make no money by doing so?
    Trying to keep it simple...;)
  • bigbloke45
    bigbloke45 Posts: 2,370 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Sounds a bit dodgy to me. Doing nothing is also an investment decision!

    As Edinvestor says, why not check out the existing SL funds first. They are no slouches at investment and are introducing innovative choices as well.

    Also, I'm not sure that £50k. will be enought to give you the economies of scale you need to get from a SIPP; don't forget thast you normally have to pay a fee for each transaction in a SIPP on top of any management fees. This all adds up, believe me!

    Don't feel obliged/pressurised to make a quick choice, you may regret it later.
  • Retired_I.F.A.
    Retired_I.F.A. Posts: 863 Forumite
    The policy fee had me rolling around the floor with laughter:£300 + vat yr 1 £200 + vat each year thereafter. With the charges they are applying and the cautious view to investment the 50k is only going to go one way and it sure aint up.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    There is also no reason to use discretionary asset managment firms unless you want to buy shares directly, which is something an IFA can't advise on.
    Trying to keep it simple...;)
  • Retired_I.F.A.
    Retired_I.F.A. Posts: 863 Forumite
    Since when Ed? An IfA can advise on buying shares as far as I know.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Retired_I.F.A. wrote: »
    Since when Ed? An IfA can advise on buying shares as far as I know.

    Nope, IFAs not regulated for share buying - or for individual investment trusts.
    Trying to keep it simple...;)
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