OCTOPUS Choice investments are now accessible within a Self-Invested Personal Pension (SIPP) wrapper, in response to demand from investors and advisers.
This will allow the property-backed peer-to-peer lender’s customers to use their P2P investments as part of their pension fund.
Octopus Investments – the investment arm of the Octopus Group – has partnered with specialist pension providers, Hartley Pensions and Morgan Lloyd to make its sister company Octopus Choice available within a SIPP for the first time.
“We’ve been working with Octopus for some time now and we are very pleased to be partnering with such a forward-thinking company to provide this solution to new and existing clients,” said Michael Barber, technical director at Hartley Pensions.
Read more: Platforms develop their own SIPPs
“It is a fantastic opportunity to join forces with Octopus to promote the valuable benefits that P2P investments offer our SIPP clients,” added John Dowding, technical director at Morgan Lloyd. “This could be a great product for SIPP clients looking to diversify their investments and for those looking to target a regular and consistent income stream, particularly for some clients when entering drawdown.”
The move follows rising demand from investors and financial advisers to access P2P lending within a tax-efficient pension wrapper, Octopus said.
Octopus Choice was launched in 2016, having been developed by Octopus Investments with advisers in mind. It has generated almost £15m of interest for its investors and has more than £250m currently under management. The average interest rate for 2019 was 4.05 per cent at the mid-way point of the year, and no investor capital has been lost to date.
Read more: Octopus Choice names new head
“Property backed P2P lending is an alternative asset class that aims to offer lower volatility than equity markets and targets regular income,” said Charlie Taylor, head of Octopus Choice.
“Octopus Choice, for example, aims for the equivalent of four per cent per annum. These qualities can make it an attractive option for certain people, comfortable with the risks of the asset class, who want to diversify their SIPP portfolio.”