Citywire printed articles sponsored by:
View the rest of this gallery online at http://citywire.co.uk/new-model-adviser/gallery/a632636
Sipp Spotlight: How does Rowanmoor measure up?
by William Robins on Nov 09, 2012 at 11:14
Rowanmoor Sipp comes under inspection this week, offering a range of commercial property investment options and links to stockbrokers, fund supermarkets and platforms.
Number of Sipps 2,587
Total Sipp assets £290 million
Average size of individual Sipp £112,000
Profit for latest financial year for which figures are available £415,000
Turnover for latest financial year for which figures are available £12.2 million
All HM Revenue & Customs non-taxable investments are allowed, though Rowanmoor may perform additional due diligence on some of them before accepting them.
· Structured products
· Equities, warrants and bonds
· Hedge funds and other alternative investment funds
· Foreign exchange contracts
· Unquoted shares
· Commercial property, including overseas
· Prisons, care homes and public houses
· Hotel rooms, including overseas
· Secured or unsecured loans to unconnected third parties
· Harvestable commodities and plantations including green oil, teak oil, rubber and timber, Carbon credits
Carbon offsets, forestry, gold bullion, trademarks and future income royalties
How many funds can Sipp investors choose from?
No limit, subject to ownership checks.
Annual administration £475
In specie £200 per arrangement plus; £75 per asset re-registration
Cash £225 per arrangement
In specie £625 per arrangement
Establishing a portfolio with an existing investment partner Nil
Establishing a portfolio with a new investment partner £50
Direct investments (basic) £50
Direct investments (complex) £200 per transaction
Overseas investments Time cost
Ad hoc Sipp valuation £50
Property development 1% of development costs up to £1,000
Annual property charge £200 per property
Leases (other than at property acquisition) £200
Pension commencement lump sum £60 per event
Payment of pension under PAYE £60 set-up and per adjustment, £125 a year for regular payment of pension
Group Sipp No
Family Sipp Yes
Scheme pension Yes
Drawdown, flexible, capped and phased drawdown Yes
Phased retirement? Yes
Online SIPPView service, including valuations, financial transactions, asset holdings, benefit details and adviser fees
Links can be made to any platform. The Sipp also has investment partnership links with stockbrokers, fund supermarkets and other investment platforms. Rowanmoor will waive £50 set-up charge in these cases and the £50 charge for ad hoc valuations with partners with which it has automated data links.
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.