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Cash management is boring.
Unfortunately for investment advisers, getting it right is critical to maintaining the annuity purchasing power of a pension in income drawdown. Some of the insurance companies that are writing SIPPs draw income equally from all the funds within the product wrapper.
Fund supermarket Selestia is taking advantage of the insurance companies weak or even non-existent cash balancing facilities by forging relationships with existing SIPP administrators. Clients of specialised SIPP practitioners Hornbuckle Mitchell and Moorgate House are now able to invest all or part of their assets on Selestias online administration platform.
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Source: HighBeam Research, A rebalancing act.