Phil Dendy, managing director, Petrus Financial Services
The clients who use Rowanmoor are high net worth, with more than £500,000 of assets, and have more complex financial needs. Rowanmoor is not the only Sipp provider we use but we use it where clients need something more bespoke.
It offers a dedicated client manager, who will hold joint sessions with me and the client to talk through the investments. This approach is helpful for more sophisticated investors with complex investments who would not be satisfied by the packaged approach of other Sipp providers.
We have three client service levels and Rowanmoor Sipp is used for the middle segment because it is good at complex property arrangements. A typical client in this segment might be a business owner who is looking to expand but cannot get lending from the banks.
We often use it for situations where the property [held in the Sipp] is more than just a big warehouse. Some Sipp providers are only good at dealing with fairly standard types of commercial property.
Take a property that has some residential use attached to it, such as a caretaker’s flat. Most Sipp providers would find that too difficult to deal with, but Rowanmoor will talk that through with HM Revenue & Customs. It can be creative. It might separate the freehold of the property from the leasehold of the flat and deal with them separately.
We also use unlisted shares.
Rowanmoor is not particularly expensive but we use Standard Life for lower tier clients with investment in collectives, and AXA and Suffolk Life for other commercial property investments.
We have about 20 to 30 clients in the Rowanmoor Sipp, which is about £5 million of assets under advice, and we have been using them for seven to eight years.