Tilney Bestinvest has removed the service fee on its “Best SIPP” available through its Online Investment Service for those investing in the firm’s “Ready-made Portfolios”.
This will see the removal of the SIPP’s account fee, which has a starting tier of 0.3 per cent for balances up to GBP250,000, leaving only the fund charges. The new “fee-free SIPP” structure will apply to both existing and new self-directed investors in the Ready-made Portfolios.
The firm offers four multi-asset Ready-made Portfolios, each of which has a different risk profile and which are typically invested in 20 underlying funds selected by Tilney Bestinvest’s research team. The Ready-made Portfolios are regularly reviewed and rebalanced in accordance with Tilney Bestinvest’s asset allocation views and to ensure the portfolios remain consistent with their risk profile. The Ready-Made Portfolios are benchmarked against ARC (Asset Risk Consultants) Private Client Index. All four funds have outperformed their ARC indices over one, three and five years.
Jason Hollands (pictured), Managing Director at Tilney Bestinvest, says: “Removing the SIPP account fee represents a considerable overall cost saving and narrows the fee gap between managing and selecting your own investments and opting for a well-diversified, constantly monitored and professionally managed portfolio. While some investors enjoy running their own portfolios, many others find they neither have the time nor inclination to do so but cost has been a key deterrent to choosing a managed portfolio. We believe the new “fee-free SIPP” deal on our Ready-made Portfolios should help them square this circle and importantly the underlying investments are not restricted to index trackers, so there is no dumbing down of the investment content.”
In addition, for investors transferring to the Best SIPP, Tilney Bestinvest will also pay up to GBP500 towards meeting any exits costs from existing providers, whether or not the investors selects the Ready-made Portfolios or makes their own fund selections.