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Sipp Spotlight: Shining a light on Novia
by William Robins on Jan 17, 2013 at 14:01
This week we turn the light on Novia Sipp, the platform pension that can invest in commercial property
• Over 5,600 lines of assets, 2,700 funds from 295 managers, offshore and onshore, retail and institutional, authorised and unregulated, non-daily dealt
• Cash deposits from 10 providers
• Structured products
• Over 600 exchange traded funds, including aggregated trading on providers
• Commercial property
• Sterling-denominated equities traded on the London Stock Exchange
There is an annual charge based upon the total value of a client’s holdings across the wrappers held. This diminishes as portfolio value increases and is on the basis of:
£0 - £250,000 0.5%
£250,000 - £500,000 0.4%
£500,000 - £750,000 0.3%
£750,000 - £1 million 0.2%
£1 million - 0.15%
Income drawdown charge £75 per annum
Minimum investment £100 per month
£1,200 initial lump sum
Group Sipp Yes
Scheme pension No
Drawdown, flexible drawdown, capped drawdown, phased drawdown Yes
Phased retirement No
Director, Mackenzie Taylor Wealth Management
I have a good mix of clients who are pre-retirement or retired and in drawdown, and they all qualify for using a Sipp. I don’t see a differentiator between the two categories as to what Sipp provider or platform to use. We would use a platform for Sipp investors where it suits their profile because it delivers economies of scale.
My proposition is aimed at long-term capital growth and Novia provides a large range of funds to choose from. On average, my clients have £350,000 of assets and are around 50 to 55 years old. Of my 87 clients, 37 are invested through Sipps.
I know Novia provides access to commercial property investment through its Sipp, although I don’t use it. It introduced it only a few months ago. I do have one commercial property Sipp investor, but they have two Sipps, one with Novia and another elsewhere for the commercial property.
Regarding drawdown, Novia is very competent and has a clear charging structure: I know what everyone is paying.
There is one important factor when it comes to drawdown: access to a cash account. It means I can put a year’s worth of income into one account, as clients will already have a good understanding of their own income requirements. That gives us the power to invest the drawdown funds long term.
Other providers offer cash facilities, but end up encashing units across the board or involving a third party, so they need the client to sign another form before it is passed on. With Novia, everything is electronic, which is much more efficient.