Smoothed Sipp from Prudential and Hornbuckle

Sipp provider Hornbuckle and Prudential are launching a new at-retirement proposition combining stable investment returns with a fully flexible Sipp wrapper at what they describe as ‘value-for-money’ fees.

The product combines the PruFund range of smoothed funds and the ability to add further capital guarantees and the ability to adjust and add other investments within a Sipp wrapper. 

Clients will be able to switch freely between the range of PruFunds.

Advisers can access the proposition via a single application process including just one joint application form that combines both the set-up of the pension wrapper and placing the investment with Prudential. The two providers have aligned their on-boarding process and advisers will only contact one provider – Hornbuckle – during the new business set-up process.

During the launch there will be no fee to set up the Sipp. There is a £250 a year administration charge for a single investment, rising to £525 a year for multiple investments of standard assets, and £600 a year for non-standard assets. There is a minimum fee of £300 for property investments. Customers in drawdown will pay £175 a year in administration fees.

Hornbuckle managing director, proposition & marketing Patrick Van de Steen says: “With low interest rates here to stay, clients look for substitutes to annuities at-retirement.  The combination of the PruFund’s smooth returns with the flexibility of our full Sipp wrapper can deliver this at a competitive price.”

Prudential head of business development Vince Smith-Hughes says: “This initiative is designed to make it as easy as possible for advisers to access a range of PruFunds via the popular Hornbuckle Sipp. Tie ups such as this will become more commonplace as providers focus on supporting advisers who are in ever greater need of efficiencies and wider options for their clients.”