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Aviva reveals Sipp pricing and plans for DFM access on wrap

by Jun Merrett on Nov 21, 2012 at 13:51

Aviva reveals Sipp pricing and plans for DFM access on wrap

Aviva has revealed the pricing structure for its new platform Sipp and plans for discretionary fund manager access (DFM) on its wrap in 2013.

The flexible low cost Sipp which was first announced in April will be made available on 3 December with three levels of charges depending on what clients want to invest in.

The 'core' level gives access to over 100 insured funds and has a charge of 35 basis points (bps) for portfolios of up to £30,000; 30 bps for portfolios between £30,000 and £250,000, and 20 bps for portfolios above £250,000.

The 'choice' level will give clients access to the full range of funds on the Aviva wrap, including the 100 insured funds and over 2000 funds in its collective fund range. The charge is 40 bps for portfolios up to £30,000; 35 bps for portfolios between £30,000 and £250,000, and 25bps for portfolios above £250,000.

The 'flex' level offers access to the full range of funds on the Aviva wrap, including investments like commercial property and structured products. It will cost 40 bps for portfolios up to £30,000; 35 bps for portfolios between £30,000 and £250,000, and 25 bps for portfolios over £250,000.

Clients are able to change which level they buy at any time and existing pension portfolio clients will be assigned a new level appropriate to their investment choice by Aviva and be informed in December.

Aviva will also launch a DFM service on its wrap allowing advisers access to the discretionary managers they want to link up with in January 2013.

The wrap will not offer a panel of DFMs but allow a manager of an adviser’s choice access to clients’ investments on the platform. Aviva will not charge for this service.

Phil Ralli (pictured) said: 'We are giving advisers the opportunity to appoint DFMs to go on platform for all three product wrappers, the ISA, the collective wrapper and the Sipp.

'Lots of discretionary managers have been operating in the high net worth space in the past but increasingly they are looking at developing services for advisers with mid-market clients.

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2 comments so far. Why not have your say?

Huntiams

Nov 21, 2012 at 15:15

My personal opinion is that Aviva have taken a step back with this. They have taken what was a simple structure and complicated it with three layers of charging. It now looks similar to Standard Life which I have always avoided due to the complexity involved in calculating charges. This article fails to mention the £250 annual fee applicable to pensions using the ‘flex’ level.

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Manjit Singh

Nov 21, 2012 at 23:04

Well done Aviva for making more pricing flexibility and investment options available to the market. This can only be a good thing for their customers

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