Sipp portfolios becoming too cautious as investors decrease exposure tovolatile asset classes

Sipp investors have been decreasing their exposure to higher volatility asset classes, but the long-term nature of these arrangements means many clients have adopted an approach that is too cautious

Once the preserve of a niche area of the market, Sipps are an increasingly popular recommendation by advisers. The sophistication and flexibility that these contracts offer are clearly appreciated by clients and their professional advisers. In particular, the ability that Sipps give to advisers to employ a wide range of assets and fund managers has allowed them to more skilfully construct portfolios to suit income drawdown. We have moved on a long way from the situation in which a portfolio had to be built from the limited range of funds available from one provider. It is difficult ...