SIPP investors tackle market volatility head on

Investors taking control of their retirement savings through a SIPP are capitalising on current market conditions to beat volatility and get better returns, according to Barclays Stockbrokers. Nearly a third of SIPP investors (32%) are increasing their exposure to equities, and only one in ten (9%) are moving away from equities.

The research from Barclays Stockbrokers also revealed that SIPP investors are modifying their investment strategy as a result of market volatility, with one in five investors (20%) diversifying their portfolios through iShares and ETCs. In general, almost two thirds of investors (63%) regard the volatile markets as a buying opportunity, and while many investors admit their investment outlook is cautious, nearly a third (29%) still invest during periods of volatility1 in order to capitalise on the current markets and increase returns. Furthermore, the research revealed how many confident SIPP investors are choosing to ‘go it alone' on their investment decisions, with 78% choosing their SIPP without seeking financial advice.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, says: "As volatility continues to dominate financial markets, it is encouraging to see bullish investors take control of their SIPP investments in the search to increase returns. It's great to see that the majority of our clients have the confidence to see market volatility as a buying opportunity rather than waiting for a recognised recovery to be established and are investing for their future. We are increasingly seeing our clients evolve their investment strategies and adopt an ‘Instividual' approach to investing, whereby they are taking ownership of their investing decisions and proactively trading to take advantage of market volatile. We expect this trend to grow as markets continue to fluctuate.

"The Barclays Stockbrokers SIPP is ideal for investors who are attracted to controlling their own pension pot and who have the skills and experience to do so. SIPPs are the most tax efficient trading account available. They share the same benefits as personal and stakeholder pensions: tax relief on contributions, tax-free growth, and tax-free lump sums, but the Barclays Stockbrokers SIPP has the added benefit of up to the minute online portfolio valuations.

Barbara-Ann King continued: "The control and transparency offered by a SIPP is also clearly important to our clients; it puts the investor in control 24/7 and can be as simple or as complicated as the investor wants, offering: a wide range of investment opportunities, the ability to diversify investments and full transparency of how the pension pot is invested."