Citywire printed articles sponsored by:
View the rest of this gallery online at http://citywire.co.uk/new-model-adviser/gallery/a661870
Sipp Spotlight: A closer look at Barnett Waddingham
by William Robins on Feb 27, 2013 at 14:14
This week we look at the Barnett Waddingham Sipp, which provides access to commercial property and platform links.
Number of Sipps 2,318
Total Sipp assets £926 million
Average size of individual Sipp across the group £400,000
Profit for latest financial year for which figures are available £421,448
Turnover for latest financial year for which figures are available £2.4 million
Capital held in excess of the regulatory requirement Thirteen weeks’ expenditure, equivalent to £300 per Sipp
Who are the owners of the business?
Barnett Waddingham is an independent partnership, wholly owned and managed by its partners in the UK.
How many funds can Sipp investors choose from?
Unlimited: open architecture
• Commercial property
• Property partnerships
• Intellectual property
• Unregulated collective investment schemes
• Investment trusts
• Commercial bonds
• Exchange traded funds
We have a limited number of esoteric investments, mainly due to the stringent requirements of our investment committee. We hold five overseas properties in our Sipps.
• Initial charge £350
• Annual charge £565
• Contributions and cash transfers £0
• Property purchase A time-based charge from £670
• Property administration A time-based charge from £155
• Drawdown payments £18.25 per month
Group Sipp Yes
Scheme pension No
Flexible drawdown, capped drawdown, phased drawdown? Yes
Phased retirement Yes
AXA Elevate and Ascentric. Advisers may also choose non-panel platforms.
Partner, Hazlewoods Financial Planning
As part of an accountancy firm, we have a reasonably large number of clients whose pension the Barnett Waddingham (BW) Sipp is suitable for. We use the BW Sipp for clients who want to purchase commercial property.
But for clients who just want an investment portfolio, we would use a platform Sipp, such as the AXA Elevate Sipp, instead. We also use other platforms, but AXA has a suitable Sipp vehicle for no extra cost.
There would be no justification for putting [investments] through BW when all those clients need is asset-allocated collectives. However, I have floated the idea of a low-cost Sipp with BW.
Many of the accountancy clients are veterinarians, doctors or lawyers, who run professional practices and want to buy their business premises with their Sipps.
BW offers good service and is local to us. We can be confident that if it lets us do something, we need not worry whether HM Revenue & Customs will later decide something should not be in the Sipp and charge tax on it.
Not all properties we put in the Sipp are standard commercial units: some are more unusual. For example, we had a client with a barn who wanted to keep horses downstairs and convert the upper level into an office.
We have used other Sipp providers for property, but they tend to be a bit careless, writing to clients and leaving us out of the loop.