How You Can Get Your Underperforming SIPP Or QROPS Back On Track

Oct 11, 2021 | Pension Transfers, Pensions, SJB Service

If you have previously transferred a UK pension to either a QROPS or SIPP with an offshore adviser and have seen poor performance or are unhappy with the service you are receiving, SJB Global might be able to get your portfolio back on track. Upon reviewing previously recommended SIPP and QROPS arrangements, we often find that the previous and on-going advice is poor with great opportunities for improvement should you choose SJB Global as your new adviser.

Our 6-step approach to providing an X-ray review:

  1. Should you be invested in a QROPS or SIPP?
  2. Am I invested in the right investment funds?
  3. Am I taking the right amount of risk compared to my risk profile?
  4. What is the total cost of my arrangement and can this be reduced?
  5. What is the geographical asset allocation of my arrangement?
  6. How has the past performance of my portfolio compared to the benchmark?

Common issues we often find when reviewing existing SIPP or QROPS arrangements are:

  • Clients have seen little to no returns due to poor performing funds which have underperformed the benchmark
  • Recommended investment funds can have extremely high ongoing fees, between 1.5%-4% per annum making it difficult to achieve a positive net gain
  • Commission based charging structures were recommended that pay up-front commissions to advisers of 7-8%, which was often not disclosed to clients
  • These commission structures have tied in periods with high exit fees should you transfer away which can restrict alternative options
  • A QROPS was recommended as opposed to a SIPP even when it wasn´t suitable
  • Offshore domiciled investment funds were recommended that have hidden initial and ongoing charges that were paid to the adviser
  • Active funds were recommended over passive funds without any evidence that this is in your best interest
  • You have had many advisers since becoming a client
  • The adviser no longer updates the client or sends updated valuations

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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Schedule an Obligation-free Call With an Adviser

By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.

SJB Global