Question
Have you looked at the Fidelity Wealth Sipp offering for value etc?Answer
I've looked at it in passing and it didn't interest me that much, but let's take a closer look here.
Fidelity Wealth targets investors with at least £100,000, the main carrot being a typical annual fund charge rebate of 0.15% (although a few funds pay 0.25%).
The Fidelity Wealth SIPP (called the Fidelity Personal Pension) is administered by Standard Life and quite straightforward. There are no setup or annual SIPP charges, the aforementioned annual fund charge rebates and Fidelity pays between £50 - £1,000 cash back if you transfer in from another pension provider between 1 August and 30 September 2012.
However, there's no option to hold shares, including exchange traded funds and investment trusts. While this won't bother everyone, it's a big potential drawback for some investors.
If you're happy being restricted to funds then the lack of SIPP charges and modest annual rebates makes this pension a reasonable deal. But there are better offers out there for £100,000+ pension funds.
The likes of Alliance Trust Savings and Interactive investor give much higher annual rebates (typically 0.5%+) and offer share dealing. Unlike Fidelity there are Annual SIPP charges and dealing fees on funds, but you'll almost certainly still end up much better off if your pension fund exceeds the £100,000 Fidelity Wealth threshold.
If you only want to invest in funds you'll also likely save money versus Fidelity by using the Skandia Collective Retirement Account purchased via discount broker Club Finance - who rebate 75% of fund trail commission which typically equates to around 0.375%. The extra rebate should more than compensate for Skandia's £68.50 annual fee on a £100,000 pension fund.
Or, if you already have a SIPP, you could use a service like Massow's Paymemy which rebates all commissions on existing policies in exchange for a one-off £95 fee, the only caveat being high additional admin fees if commission can't be rebated back into the SIPP (most SIPP providers should facilitate this).
All in all, the Fidelity Wealth SIPP offers a fair deal. But there are cheaper alternatives and the lack of share dealing will be a problem for some investors. So no great reason to avoid it, but equally no great reason to use it either, hence my disinterest.
Have you looked at the Fidelity Wealth Sipp offering for value etc?Answer
I've looked at it in passing and it didn't interest me that much, but let's take a closer look here.
Fidelity Wealth targets investors with at least £100,000, the main carrot being a typical annual fund charge rebate of 0.15% (although a few funds pay 0.25%).
The Fidelity Wealth SIPP (called the Fidelity Personal Pension) is administered by Standard Life and quite straightforward. There are no setup or annual SIPP charges, the aforementioned annual fund charge rebates and Fidelity pays between £50 - £1,000 cash back if you transfer in from another pension provider between 1 August and 30 September 2012.
However, there's no option to hold shares, including exchange traded funds and investment trusts. While this won't bother everyone, it's a big potential drawback for some investors.
If you're happy being restricted to funds then the lack of SIPP charges and modest annual rebates makes this pension a reasonable deal. But there are better offers out there for £100,000+ pension funds.
The likes of Alliance Trust Savings and Interactive investor give much higher annual rebates (typically 0.5%+) and offer share dealing. Unlike Fidelity there are Annual SIPP charges and dealing fees on funds, but you'll almost certainly still end up much better off if your pension fund exceeds the £100,000 Fidelity Wealth threshold.
If you only want to invest in funds you'll also likely save money versus Fidelity by using the Skandia Collective Retirement Account purchased via discount broker Club Finance - who rebate 75% of fund trail commission which typically equates to around 0.375%. The extra rebate should more than compensate for Skandia's £68.50 annual fee on a £100,000 pension fund.
Or, if you already have a SIPP, you could use a service like Massow's Paymemy which rebates all commissions on existing policies in exchange for a one-off £95 fee, the only caveat being high additional admin fees if commission can't be rebated back into the SIPP (most SIPP providers should facilitate this).
All in all, the Fidelity Wealth SIPP offers a fair deal. But there are cheaper alternatives and the lack of share dealing will be a problem for some investors. So no great reason to avoid it, but equally no great reason to use it either, hence my disinterest.
Read this Q and A at http://www.candidmoney.com/questions/question726.aspx
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