Goji, a specialist direct lending investment manager and platform, is to offer a low-cost self-invested personal pension (SIPP) allowing investors and financial advisers to access the benefits of Direct Lending, such as additional diversification and low volatility returns, through a tax efficient pension wrapper.
Goji are offering the SIPP via a white-label solution from Morgan Lloyd, the established SSAS and SIPP provider. The SIPP will be available via Goji’s online platform and advisers will be able to choose to transfer funds from their clients’ existing SIPP provider or invest new funds. It will allow advisers to add value to their clients by incorporating risk managed, alternative investment products in a tax efficient SIPP at a low cost.
Jake Wombwell-Povey, CEO of Goji, says: “More and more advisers are recommending their clients invest in Direct Lending, principally through the IFISA, but the vast majority think the SIPP wrapper is a better home for an asset class that offers low volatility returns and income. We believe this SIPP innovation presents new opportunities for advisers and their clients. Goji’s straight forward SIPP helps investors achieve steady but diversified income without excessive investment charges eating into investors’ returns.”
The Goji SIPP offers flexibility that matches an investor’s lifecycle; those in accumulation can opt to reinvest all income; those who need supplemental income can opt to have interest payments paid out, whilst those seeking to withdraw funds can opt to have an element of capital and interest paid out to them.
Goji’s Diversified Lending Bonds, which help finance critical sectors such as SMEs and education, and its Renewables Lending Bonds, which invest in loans to UK solar, wind and anaerobic digestion energy projects, are both available in a Goji SIPP. Investors can be confident their pension is having a positive impact on society supporting UK SMEs and jobs, or renewable energy generation.
This launch comes shortly after Goji received direct authorisation from the UK regulator, the Financial Conduct Authority (FCA), highlighting Goji’s commitment to compliance and transparency. This further strengthens Goji’s aim to open up the Direct Lending market to advice, both in terms of the range of tax-efficient options Goji now provides (ISA and SIPP) but also in terms of regulation.
