Your questions answered Vol 2 - IM Private Clients

[Intelligent Money]

mfmman said:

Hi Julian

Where does the cash from the sale of Clinigen sit now? Cash element within the fund or re-invested into the remaining holdings? (I'm assuming not returned as cash to the account like PHR as I can't see it)

Thanks

I have also checked this post really carefully for typos, lol

Hi mamman

The funds from the Clinigen and Citrix sale were used to add Pay Pal and the Jouls Group to PHO.

The mandate within PHO is that we look to exit a holding at a point where we feel the stock has reached "value" and re-place with a new holding that we believe offer growth opportunity.

Cheers

Nik

An e-mail should also of been sent to PHO holders to inform you of the sale and purchase. Again my apologies that it looks like this hasn't been received. I have the tech team looking at the issue and we will get it resolved.

Edited by Intelligent Money on Wednesday 16th March 09:55

[Intelligent Money]

PM3 said:

S6PNJ said:

I was under the belief that within IM, we were buying into a 'fund' and not individual stocks and shares. How the fund manager makes up that fund to stay within the risk profile is up to them - they have to 'rebalance' in order to keep the risk profile the same from my understanding when I last spoke with Nik about it. If you want to hold individual shares, then go by them on a share trading platform.

"fully managed portfolios"

Hi gents,

We run three different investment propositions :

IM Optimum

These are a range of portfolios that invest in low cost index trackers, but the structure is human managed and has a UK bias. The aim is to produce long term growth and income whilst managing volatility.

The Optimum Portfolios offer 5 Risk Rated portfolios that allow you to choose how much risk you are happy to take, and we then manage the holdings within that portfolio or mix of portfolios on your behalf.

The portfolios range from Optimum Defensive which is the most defensive of the Optimum Range to Optimum Global Growth which is the most aggressive.

These are formally reviewed quarterly but can be altered more frequently if market conditions require it.

You can find out more about these portfolios, where they are invested and their past performance here:

https://private-client.intelligentmoney.com/im-opt...


IM Index

If you would like to decide how much of your money is held in Stocks in Shares then the Index Portfolios may be for you.

You can choose how much of your money you want in the stock market, 100%, 80%, 60%, 40% or 20%.

Our Index portfolios track the Global Equity Markets. The portfolios are allocated and managed based on “market capitalisation”. This means that the portfolios will always offer you the right proportion of exposure to the Global Markets

The remaining funds are invested in Global Bonds.


You can find out more about these portfolios here:

https://private-client.intelligentmoney.com/im-ind...


PH Equity

This is a buy and hold portfolio of 10 giant global brands, representing £3 trillion of market capitalisation. They are all household names and the largest holdings are Netflix, Amazon, Colgate Palmolive, and Diageo (which owns household name drink brands such as Guinness, Bell’s, Johnnie Walker, Smirnoff, Baileys, Gordon’s, Tanqueray and many others).

The smaller holdings include Apple, Nike, and Coca-Cola.

So no surprises really, very simple, very effective and highly concentrated. It effectively runs a bit like a tracker like a tracker in that it holds these companies with the weightings originally given to them and regularly rebalances these back to these original positions, but it is also fully managed, meaning we can change things if we feel we need to.

You can find out more about this portfolio here:

https://private-client.intelligentmoney.com/ph-por...

PH Opportunity

This portfolio looks to identify holdings that offer the potential for above average growth over a 3-5 year horizon. This may be because the value is currently discounted due to market conditions or because they are ready to take advantage of a developing market or sector. Once we feel the value has been met a holding will be sold and replaced by another that we feel meets our “opportunity” criteria.

You can find out more about this portfolio here:

https://private-client.intelligentmoney.com/ph-por...

So across the range you have a choice of fully managed portfolios that make use of trackers and ETF's, a global tracker that allows you to chose your Equity exposure and two portfolios that hold individual stocks.

PH Equity is buy and hold, the re-balance is to maintain the proportionate holding of each stock on a quarterly basis. We do review the holdings with a view to hold unless we feel a fundamental has changed, in which case the stock may be replaced.

Adam has covered the remit for PH Opps in another post, this portfolios will be traded more frequently, once a stock has reached value it will be sold and replaced.

Cheers

Nik

[Intelligent Money]

anonymous said:

[redacted]

Hi

The current PH Opps holdings are :

Anheuser Busch InBev
ASOS
B&M European Value Retail
Compass Group
Croda International
Easyjet
Fevertree Drinks.
GB Group.
IG Group
Intuit Inc
ITV
Melrose Industries
Prudential
Reckitt
Ross Stores
RWS Holdings
Smith & Nephew
Joules Group
Paypal Inc

Cheers

Nik

[Intelligent Money]

Phooey said:

Did we buy PayPal and Joules in December?

Hi Phooey

February

Cheers

Nik

[Intelligent Money]

anonymous said:

[redacted]

Hi Both,

Next was a consideration at outset but was not included in the final portfolio.

Reckitt has been there from the start, the only trade has been the sell off of Clinigen and Citrix and the purchase of Joules and Paypal.

Regards

Nik

[Intelligent Money]

Ron-ski said:

Thanks, that's what I have, but if someone from IM can confirm please?

Hi Ronski

PHE Holdings are :

Amazon Inc
Apple Inc
Coca-Cola Inc
Colgate Palmolive
Diageo
Domino’s Pizza
Netflix
Nike Inc
Starbucks Corp
United Health Group

Regards

Nik

[Intelligent Money]

PHO Holdings

The PHO Holdings are as I confirmed yesterday.

Next was a consideration but was swapped out for Easyjet just before launch after a review of the trading values as we felt that this offered better 3-5 year opportunities.

My apologies that Julians post was not updated. As a late change to the holdings the need to update a forum post was missed, a danger I guess with our desire to be open and share information as early as possible in our thinking process.

In our defence I feel I must say that in my opinion to class the switching out of one stock for another just before launch as turning the portfolio into a "fairytale" is a little harsh, but each to their own.

My apologies again for the fact that the sale and purchase communication was not received. We have identified the issue and fixed it.

Regards

Nik

[Intelligent Money]

Rodintee said:

To the helpful chaps at IM can you help please.

I have some S&S ISA's and SIPP funds with you and want to switch £16k from the ISA to the SIPP. I thought I had this sorted but it seems not. £16k has gone to cash in my ISA. I can't see anyway to simply say switch it in to the SIPP. Do I need to have it come out in to my bank account then get sent back in to the SIPP as a completely new payment? Running out of time if so........

Hi Rodintee

If you e-mail coops, [e-mail] he can help you out with this

Regards

Nik

[Intelligent Money]

AdamIM said:

duckson said:

droopsnoot said:

2Btoo said:

So, what's happening? Am I getting wealthier (as the numbers suggest) or am I getting poorer (as the graph suggests)?

This is to do with the "interesting but standard" way that the growth figure is calculated, I believe the term is "Modified Dietz" but it's commonly referred to (on here at least) as "Cameron Diaz" as she can probably explain it just as well (with all respect to Ms Diaz who might be a financial whizz-kid in real life).

My growth percentages increase even when the actual value of the investment has fallen. I don't know how they work, and I've started to ignore them and just view the value compared to the amount of money that I put in.

Edited by droopsnoot on Friday 25th March 11:43

Be great if we could have an option to swap between this and the standard ‘net investment vs value’.

I'll raise this internally.

Hi Both,

The % is the Modified Dietz method, hover over the i and it gives you some information about this. It is the industry standard way of trying to account for an average balance over a period in the market so tries to allow for contributions and withdrawals.

In practice it has become apparent that this valuation method is offering little value and that the complex nature of the calculation is causing some confusion. Wee are likely to remove it in the next update.

In the Current Holdings section of the dashboard you can see :

Value (the current value)
Investments (how much has been contributed)
Disinvestments (how much has been taken out the portfolio)
Net Investment (Investment – Disinvestment)

So you do also have a net invesment shown here.

Regards

Nik

[Intelligent Money]

Phooey said:

Is this right?

The largest component of Index100 is USA. Simples.

USA markets finished higher yesterday, so with that I would expect (hope!) Index100 to be positive on the day. But todays log in (yesterdays figures) it's not

I'm keen to learn what I am invested in so apologies for the questions, but what actually is in Index100 that underperformed yesterday?

Hi Phooey

The main make up within Index 100 at the moment :

Americas
69.03%
United States
65.03%
Canada
2.91%
Latin America
1.09%

Greater Asia
9.06%
Japan
6.89%
Australasia
2.17%

Greater Europe
14.08%
Eurozone
9.12%
Europe - ex Euro
4.96%

Yesterday both Asia and Europe took a bit of hit.

Cheers

Nik

[Intelligent Money]

Intelligent Money said:

Phooey said:

Is this right?

The largest component of Index100 is USA. Simples.

USA markets finished higher yesterday, so with that I would expect (hope!) Index100 to be positive on the day. But todays log in (yesterdays figures) it's not

I'm keen to learn what I am invested in so apologies for the questions, but what actually is in Index100 that underperformed yesterday?

Hi Phooey

The main make up within Index 100 at the moment :

Americas
69.03%
United States
65.03%
Canada
2.91%
Latin America
1.09%

Greater Asia
9.06%
Japan
6.89%
Australasia
2.17%

Greater Europe
14.08%
Eurozone
9.12%
Europe - ex Euro
4.96%

Yesterday both Asia and Europe took a bit of hit.

Cheers

Nik

Sorry gents should off included this yesterday, it may also be a timing issue.

The portfolio is valued at 3:00 p.m. UK time so won't of captured the full US trading day at the point.

Cheers

Nik

[Intelligent Money]

SteveStrange said:

Just seen the email and been brave enough to check my dashboard for the first time in a few days (a bad decision as it turns out!)

Is there not a very simple calc that can be done (and displayed on the dashboards), current value divided by original investment to give a percentage rate of return (or whatever the calc would be)? Whilst the Dietz method was a little confusing, even with Wikipedia explaining (I know, I know), having no comparative gain/loss at all seems to be obfuscating things even further.

Desperately trying to keep the faith here

Hi Steve

In your dashboard you can see :

Value (the current value)
Investments (how much has been contributed)
Disinvestments (how much has been taken out the portfolio)
Net Investment (Investment – Disinvestment)

This is broken down for each portfolio holding so should give you a good indication of your return taking into account, withdrawals, switches, additional contributions etc.

In the Investment tools on your dashboard you can click on the "portfolio comparison tool" You can select a date range for each portfolio here and see how it has performed over your selected time period. This should give you an indication of performance of the portfolio irrespective of your individual holdings and show how the portfolio itself has performed.

Hope that helps with the faith.

Cheers

Nik

[Intelligent Money]

Al Gorithum said:

PorkInsider said:

Al Gorithum said:

Intelligent Money said:

In your dashboard you can see :

Value (the current value)
Investments (how much has been contributed)
Disinvestments (how much has been taken out the portfolio)
Net Investment (Investment – Disinvestment)

Would a deduction for the cost of management fees not be more accurate?

The Value (current value) bit already takes that into account?

Doesn't seem clear from the IM description above?

Hi Both,

All valuations on your dashboard are net of fees so what you see is your money.

Cheers

Nik

[Intelligent Money]

2Btoo said:

JulianPH said:

Lots of useful stuff

Julian,

Thanks. That's lots of useful stuff. We appreciate Coops and his crayons.

I guess the genesis of my question is a vague concern that we PH-ers will probably represent a lower-margin customer base for you than your 'normal' customers do; you are allowing us to invest a couple of groats instead of the usual minimum investment of £250,000 (or whatever it is) and you are also not charging us an entry fee. While this is greatly appreciated I am aware that should there be a desire among the IM shareholders to streamline the business then we would be the first to go. Additionally, if the 'lower-value' bunch get to be too large a proportion of the customer base then the performance of the company will be dragged down; providing Coops and his crayons won't be cheap and you have to meet your costs somehow. 30% of your business is a sizeable proportion to offer out under 'mates rates'.

Maybe I'm worrying about nothing though, eh?

Edited by 2Btoo on Wednesday 6th April 12:51

Hi 2Btoo

PH'rs. PH Family and PH Referrals make up around 1/3 of the Private Client business now.

To put your mind at rest you are indeed worrying about nothing.

When Julian and I built Private Clients it was driven by a belief that there was a gap in the Financial Services space and a desire to fill that and build a different model that could fill the gap between full advice and complete DIY.
We were and are fortunate that we were adding Private Clients to an already strong base and so didn't and don't have the pressure that some models face to be immediately profitable. As such any initial fee isn't a deal breaker for us. It is more important that we attract clients for the right reasons who then stay with us.
We have tried to build a proposition that offers value both to you as the clients and to us as a business, so while i hope we have offered PH'rs a good deal it is still profitable for us to run.

The embedded value that PH'rs have offered via this forum is also a key consideration for us a business. The Private Client model has been shaped by feedback from the forum and provided a great test bed and sounding board to allow us to test ideas and do our best to provide a service that is needed not just the model that we think is needed!

It is for the reason that as MD of Private Clients I have and will maintain a keen focus on PH clients as it is a fundamental, and I think a pretty unique interface that we have been able to build with end users to keep the business evolving in the direction that end users value and need.

Apologies if that sounds in any way a bit preachy but please be assured that PH clients are a fundamental and important part of our business and no streamlining is planned.

Cheers

Nik

[Intelligent Money]

Mr Pointy said:

Re the new switch system for transferring funds around: it's good, but could IM consider a summary screen of the transaction before the final "submit" button press. Each step collapses the previous one so on the final screen you can't see what funds you are moving from/to or the amount, just the percentage & then the Submit button. I realise you can use the Back button but then you need to step forward again; at least the entered values seem to be retained.

It's also not possible to escape back to the Profile screen once you are past the first step so it's not immediately obvious how to cancel the process - you have to Back-Back-Back before you get to the first step where the Return To Profile button lives. It would be bettter to have that button available at each step.

Thanks for the feedback, I will drop it into the dev team for consideration in the next update.

Cheers

Nik

[Intelligent Money]

V1nce Fox said:

Ok so let’s pretend, pretend mind, that i don’t understand any of that. What does it mean and what sort of return, risk, etc would i be looking at?

Hi V1nceFox

I'm happy to chat through the sort of things you may want to think about and answer any questions you might have so you feel better placed to decide what is right for you. No obligation or cost.

Just drop me a message at [e-mail] if you want to set up a chat.

Cheers

Nik

[Intelligent Money]

mfmman said:

A question on dividends, I see the regular drip drip drip of dividends into my IM ISA but nothing into my IM pension since Jul 2021 (payments showing for Dec 2020 and July 2020 before that). Should I have expected to see something in Dec 2021?

Hi mfmman

Dividends are only payed on the PH portfolios as they hold shares in the companies that make up the portfolios. Index and Optimum portfolios don't have dividend payments allocated to them.

If you hold different portfolios in your SIPP account compared to your ISA account that may be the explanation.

Cheers

Nik

[Intelligent Money]

2Btoo said:

Oooh, have the winners of the ballot for tickets been announced then? When do we hear, or is it a case that if you've not heard then you haven't won?

Confirmation will go out this week.

We will let you know success or not

Cheers

Nik

[Intelligent Money]

Tintop2k said:

Thanks Nik and the IM team for the tickets to Oulton Park.

Here's a quick snap of Nik on the grid walk

Good to see all the PH'rs at the track and I'm glad you enjoyed the day.

Racing was great and good to be back and able to offer the VIP packages

Cheers

Nik

[Intelligent Money]

Gallons Per Mile said:

Nah, Nik didn't specify which year 'this week' is in

Apologies to all who are waiting.

As you can imagine Silverstone is a heavily over subscribed round and we are doing what we can to accommodate as many of you as we can.

A couple of pieces need to fall into place and then we will let you know.

Cheers

Nik