Intelligent Money - your investment questions answered

Intelligent Money - your investment questions answered

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Testaburger

3,674 posts

197 months

Thursday 24th January 2019
quotequote all
JulianPH said:
I wanted to show the human side to an investment firm.


Cheers

Julian
Not that you need my approval - but in doing so (in the prevailing manner), it paints a very favourable reflection of your firm.

Now, sort your st out for us expats so we can have that soufflé. hehe

Intelligent Money

Original Poster:

503 posts

62 months

Thursday 24th January 2019
quotequote all
outnumbered said:
I read through the marketing information for Private Clients on the IM website, to get a better understanding of your service. I see that earlier in the thread you mentioned that you can waive some fees for PH members, which is generous.

However, in the normal case, for a non-PH member, can you explain the "1.5% one off initial transaction charge" , as I found the wording a bit unclear ?

Is this a charge that applies only to the initial investment with IM, and all subsequent investments would be charge-free ? For example, if one were to invest £100,000 in year 1, and £900,000 in year two, would the 1.5% charge only be applied to the £100,000 ?

Or does the 1.5% charge apply "initially" to every investment that's made ? (this seems more likely to me).
Hi,

I just wanted to add to Julians comments about our initial charge. In practice we view it as a maximum 1.50% initial charge. The charge we will actually apply is relative to the work and therefore the cost involved in setting up the Pension/ISA and bringing the funds across.
In a case that has a single ceding scheme and a portfolio that is easily transferred we may be able to deal with most of the work electronically which keeps our administration and time costs low and so we are able to reduce the initial charge. On a more complex case where we have to obtain hard copies of documents and chase providers regularly we obviously incur more cost and that may be reflected in the initial charge.

We will always do our best to take a pragmatic and fair approach and make sure that the charges we apply are relative to the costs associated with each client we look after.

Regards

Nik

Tresco

516 posts

156 months

Thursday 24th January 2019
quotequote all
Hi, What is your fee for managing a SIPP which contains Unit trusts, cash and a self managed commercial property?

Sorry, edited to add that I appreciate it won't be your fee as you're not SIPP providers..

Edited by Tresco on Thursday 24th January 11:18

Intelligent Money

Original Poster:

503 posts

62 months

Thursday 24th January 2019
quotequote all
Hi Tresco,

If you use our Private Clients service your current Unit Trust and cash holdings would need to be encased and invested in one of our five fully managed fixed risk/reward portfolios or one of 2 adjusted risk/reward portfolios.

Details of these portfolios can be found on our website https://www.intelligentmoney.com/private-clients/

As a PH member you will pay no initial fee and then 0.87% p.a.

If you have a minimum of £100,000 invested in these portfolios then your commercial property holding will incur no additional charges.

Alternatively you could use either our iSIPP or Bespoke SIPP. Both of these are only available through a Financial Adviser and as such are likely to have adviser fees to consider.

Details of iSIPP and Bespoke SIPP can be found on our adviser website :
https://www.intelligentmoney.com/financial-adviser...

Regards

Nik

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Testaburger said:
JulianPH said:
I wanted to show the human side to an investment firm.


Cheers

Julian
Not that you need my approval - but in doing so (in the prevailing manner), it paints a very favourable reflection of your firm.

Now, sort your st out for us expats so we can have that soufflé. hehe
That is very kind of you and much appreciated thanks!

I've just got off a long conference call with Dubai and the project has just advanced rapidly. The soufflé may come quicker than expected!

Tresco

516 posts

156 months

Thursday 24th January 2019
quotequote all
Intelligent Money said:
Hi Tresco,

If you use our Private Clients service your current Unit Trust and cash holdings would need to be encased and invested in one of our five fully managed fixed risk/reward portfolios or one of 2 adjusted risk/reward portfolios.

Details of these portfolios can be found on our website https://www.intelligentmoney.com/private-clients/

As a PH member you will pay no initial fee and then 0.87% p.a.

If you have a minimum of £100,000 invested in these portfolios then your commercial property holding will incur no additional charges.

Alternatively you could use either our iSIPP or Bespoke SIPP. Both of these are only available through a Financial Adviser and as such are likely to have adviser fees to consider.

Details of iSIPP and Bespoke SIPP can be found on our adviser website :
https://www.intelligentmoney.com/financial-adviser...

Regards

Nik
Thanks Nik.

Mr Pointy

11,146 posts

158 months

Thursday 24th January 2019
quotequote all
Having browsed the website I see Pensions & ISAs are are covered, but is there a general investment account for funds that are not currently in a pension or ISA?

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Tresco said:
Hi, What is your fee for managing a SIPP which contains Unit trusts, cash and a self managed commercial property?

Sorry, edited to add that I appreciate it won't be your fee as you're not SIPP providers..

Edited by Tresco on Thursday 24th January 11:18
We actually are a SIPP provider as well (as per Nik's post).

Without wanting to repeat what Nik has said, were you to use Private Clients to run a minimum £100k in the fund section of your pension there are no charges whatsoever for the cash and property holdings. This reduces your SIPP fees massively as property charges can be very high.

Cheers


Testaburger

3,674 posts

197 months

Thursday 24th January 2019
quotequote all
JulianPH said:
That is very kind of you and much appreciated thanks!

I've just got off a long conference call with Dubai and the project has just advanced rapidly. The soufflé may come quicker than expected!
Very good - I’m hungry!

A quick question, if I may; the website (and conversation here) give off the flavour of being somewhere to park an already substantial fund and forget about it for a while. Unfortunately my retirement fund in HK is limited to the company scheme, so just Schroders & Fidelity, so that’ll stay put. So, I would be wanting to post a a chunk of cash in once a month. I just want to clarify that this is something you would be willing to work with (and being a cheap Yorkshireman, avail myself of the PH mates rates)?

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Mr Pointy said:
Having browsed the website I see Pensions & ISAs are are covered, but is there a general investment account for funds that are not currently in a pension or ISA?
Due to demand we are about to launch this.

The portfolios will be the same, our software developers are currently writing the coding to generate the annual tax certificates and when this has been tested the GIA will go live straight away.

Cheers

Julian

Tresco

516 posts

156 months

Thursday 24th January 2019
quotequote all
JulianPH said:
We actually are a SIPP provider as well (as per Nik's post).

Without wanting to repeat what Nik has said, were you to use Private Clients to run a minimum £100k in the fund section of your pension there are no charges whatsoever for the cash and property holdings. This reduces your SIPP fees massively as property charges can be very high.

Cheers
Thank you Julian, Yes I'd realised after I'd edited my earlier post that you are SIPP providers, just to clarify though that I couldn't continue transfer my existing SIPP funds i.e. Fundsmith, Unicorn etc and that these would have to be cashed in?

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Testaburger said:
JulianPH said:
That is very kind of you and much appreciated thanks!

I've just got off a long conference call with Dubai and the project has just advanced rapidly. The soufflé may come quicker than expected!
Very good - I’m hungry!

A quick question, if I may; the website (and conversation here) give off the flavour of being somewhere to park an already substantial fund and forget about it for a while. Unfortunately my retirement fund in HK is limited to the company scheme, so just Schroders & Fidelity, so that’ll stay put. So, I would be wanting to post a a chunk of cash in once a month. I just want to clarify that this is something you would be willing to work with (and being a cheap Yorkshireman, avail myself of the PH mates rates)?
Yes, that is the nature of the service. Invest the money with no adviser or platform fees and forget about it whilst we manage it (rather than constantly monitoring the holding your self and manually doing the rebalancing.

We are now deciding upon whether to offer a UK based gross roll-up GIA (Sterling denominated - so the same portfolios exactly) which we could technically do tomorrow, or setting up off-shore Dollar denominated versions (which would obviously take us into the beginning of the new tax year as previously mentioned). I would be very interested to hear your thoughts on this...

We are more than happy to work on the basis you state with the PH mates rates. being the grandson of a Yorkshireman I understand completely! hehe

You must have heard the definition of a Yorkshireman - like a Scotsman, just without the generous streak! biggrin

Intelligent Money

Original Poster:

503 posts

62 months

Thursday 24th January 2019
quotequote all
Testaburger said:
Very good - I’m hungry!

A quick question, if I may; the website (and conversation here) give off the flavour of being somewhere to park an already substantial fund and forget about it for a while. Unfortunately my retirement fund in HK is limited to the company scheme, so just Schroders & Fidelity, so that’ll stay put. So, I would be wanting to post a a chunk of cash in once a month. I just want to clarify that this is something you would be willing to work with (and being a cheap Yorkshireman, avail myself of the PH mates rates)?
Hi Testaburger,

A easy one to answer, yes, that is defiantly something we can do for you at PH mates rates and we accept both cheap and expensive Yorkshireman

Nik

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Tresco said:
JulianPH said:
We actually are a SIPP provider as well (as per Nik's post).

Without wanting to repeat what Nik has said, were you to use Private Clients to run a minimum £100k in the fund section of your pension there are no charges whatsoever for the cash and property holdings. This reduces your SIPP fees massively as property charges can be very high.

Cheers
Thank you Julian, Yes I'd realised after I'd edited my earlier post that you are SIPP providers, just to clarify though that I couldn't continue transfer my existing SIPP funds i.e. Fundsmith, Unicorn etc and that these would have to be cashed in?
With Private Clients this would be the case and we would then manage your money using our own portfolios.

We have SIPPs that enable you to chose any funds you like, but these would cost you £150 a year (or £750 a year to include all property fees - our Bespoke SIPP).

The Bespoke SIPP is great for a portfolio that includes property as it doesn't have the time charging element other SIPP providers levy (and this is when the costs really stack up).

But if you just want to hold funds like Terry's then you would be better off using someone like Fidelity and saving the £150 annual SIPP fee.

I hope that helps, please get back to me with anything else.

Julian

DonkeyApple

54,921 posts

168 months

Thursday 24th January 2019
quotequote all
Intelligent Money said:
we accept both cheap and expensive Yorkshireman

Nik
All true Yorkshireman are simultaneously cheap and expensive. It’s purely dependent on which direction the money is flowing. wink

Testaburger

3,674 posts

197 months

Thursday 24th January 2019
quotequote all
JulianPH said:
Yes, that is the nature of the service. Invest the money with no adviser or platform fees and forget about it whilst we manage it (rather than constantly monitoring the holding your self and manually doing the rebalancing.

We are now deciding upon whether to offer a UK based gross roll-up GIA (Sterling denominated - so the same portfolios exactly) which we could technically do tomorrow, or setting up off-shore Dollar denominated versions (which would obviously take us into the beginning of the new tax year as previously mentioned). I would be very interested to hear your thoughts on this...

We are more than happy to work on the basis you state with the PH mates rates. being the grandson of a Yorkshireman I understand completely! hehe

You must have heard the definition of a Yorkshireman - like a Scotsman, just without the generous streak! biggrin
Excellent, I’m only in it for a free soufflé!

Regarding the denominations, I’m incapable of doing the analysis of both, aside th obvious currency exposure.

Personally, I think I prefer the sterling GIA, in as much as it is me investing in your service exactly ‘as is’, a-la Fundsmith. They just wanted my HK tax ID number and off we went. Perhaps that just because I’m a simpleton who likes familiarity, and I like the look of the product currently on offer. Selfishly, and perhaps only with a medium term view, I’m putting must of what I have into GBP investments due to my HKD paycheque being able to buy more of them at present. That said, I assume that if the portfolios are the same, the USD would buy the same amount of ‘units’.

In terms of banking, I send GBP from my HK HSBC account to my UK one at no cost, and divert it from there. If it were an offshore USD fund, I’m assuming the method of delivering my dosh would be different and incur charges along the way. I’m not sure whether I can send USD from HK to the U.K., or how much it would cost to send USD to your offshore fund. Ordinarily I don’t care about charges for one-off movements, but obviously if I’m focusing on investing for a low total cost, then it all needs to be factored in. I’m guessing that if most of your prospective expat clients are Brits, then they’ll all have U.K. bank accounts - which could simplify things with a U.K. GIA setup.

Would the portfolios essentially be aiming at similar markets and similarly rebalanced? If you could share your ideas of what it would look like, in terms of portfolio - and how it differs from the current offerings, I’d be delighted to share my opinion.

I honestly don’t have much of a strategy regarding my currency outlook. My retirement fund is in USD currently US large cap (I could change this to a sterling denominated fund), and 90% of my personal investments are in GBP (Fundsmith, VLS100 and some shares). My plan is retirement in the UK. I’d be interested to hear your thoughts on this.

Edited to add a bit more info..

Edited by Testaburger on Thursday 24th January 13:18

Unexpected Item In The Bagging Area

7,015 posts

188 months

Thursday 24th January 2019
quotequote all
Julian has asked me to help out anyone who’d like to win some further prizes by answering the quiz question posted last night.

The code PH2607 relates to something posted about in this thread https://www.pistonheads.com/gassing/topic.asp?h=0&...

Anybody who can’t get it with this help doesn’t deserve £100!

JulianPH

9,912 posts

113 months

Thursday 24th January 2019
quotequote all
Testaburger said:
JulianPH said:
Yes, that is the nature of the service. Invest the money with no adviser or platform fees and forget about it whilst we manage it (rather than constantly monitoring the holding your self and manually doing the rebalancing.

We are now deciding upon whether to offer a UK based gross roll-up GIA (Sterling denominated - so the same portfolios exactly) which we could technically do tomorrow, or setting up off-shore Dollar denominated versions (which would obviously take us into the beginning of the new tax year as previously mentioned). I would be very interested to hear your thoughts on this...

We are more than happy to work on the basis you state with the PH mates rates. being the grandson of a Yorkshireman I understand completely! hehe

You must have heard the definition of a Yorkshireman - like a Scotsman, just without the generous streak! biggrin
Excellent, I’m only in it for a free soufflé!

Regarding the denominations, I’m incapable of doing the analysis of both, aside th obvious currency exposure.

Personally, I think I prefer the sterling GIA, in as much as it is me investing in your service exactly ‘as is’, a-la Fundsmith. They just wanted my HK tax ID number and off we went. Perhaps that just because I’m a simpleton who likes familiarity, and I like the look of the product currently on offer. Selfishly, and perhaps only with a medium term view, I’m putting must of what I have into GBP investments due to my HKD paycheque being able to buy more of them at present. That said, I assume that if the portfolios are the same, the USD would buy the same amount of ‘units’.

In terms of banking, I send GBP from my HK HSBC account to my UK one at no cost, and divert it from there. If it were an offshore USD fund, I’m assuming the method of delivering my dosh would be different and incur charges along the way. I’m not sure whether I can send USD from HK to the U.K., or how much it would cost to send USD to your offshore fund. Ordinarily I don’t care about charges for one-off movements, but obviously if I’m focusing on investing for a low total cost, then it all needs to be factored in. I’m guessing that if most of your prospective expat clients are Brits, then they’ll all have U.K. bank accounts - which could simplify things with a U.K. GIA setup.

Would the portfolios essentially be aiming at similar markets and similarly rebalanced? If you could share your ideas of what it would look like, in terms of portfolio - and how it differs from the current offerings, I’d be delighted to share my opinion.

I honestly don’t have much of a strategy regarding my currency outlook. My retirement fund is in USD currently US large cap (I could change this to a sterling denominated fund), and 90% of my personal investments are in GBP (Fundsmith, VLS100 and some shares). My plan is retirement in the UK. I’d be interested to hear your thoughts on this.

Edited to add a bit more info..

Edited by Testaburger on Thursday 24th January 13:18
I think we can both agree that the most important factor involved here is the soufflé. hehe

Great to hear your thought. We are now looking at the UK Sterling denominated approach to a gross roll-up account for international clients very seriously.

Advantages:

  • It is (literally) identical to the portfolios we currently run for pensions and ISAs (by which I mean the exact same portfolios).
  • There is no cost increase for the service as there is not the increased cost in running separate off-shore mirrors of these portfolios.
  • The majority of ex-pats return to the UK for retirement and so having their investments denominated in GBP makes sense.
  • There is nothing stopping us adding an offshore USD range at a later date in any case.

Disadvantages:

  • This is what we are checking now. There may be something so obvious that we have missed it, but equally we may be comparing this with a traditional route that is over complicated for no reason (other than the historic commission paying reason that does not apply to us).
Cheers!



DonkeyApple

54,921 posts

168 months

Thursday 24th January 2019
quotequote all
In the old days, as taxation on this front may have changed making my point moot, the key was to not repatriate client funds into the U.K. so typically something like a Jersey based entity was set up to hold the offshore client funds & assets.

selmahoose

5,637 posts

110 months

Thursday 24th January 2019
quotequote all
!!!! Stupid Money!!! (busy making small fortunes out of large ones )Ltd

An Announcement

Following the well known dimots v JamesB (who's a welcher and who ain't ?) fiasco bet on the crypto thread, news of success in the Julian/IM competition was met with some scepticism.

Was Julian a dimots (honourable) or a JamesB (welcher)?

Was Julian ever going to return to the forum or was he going to slink away and vanish from sight ?

Was "Julian" in fact Julian at all or was he in Reality .......JamesB himself!!!!!!

So many questions and so many doubts and of course a sleepless night ensued.

However, we are happy to announce that following a heated late-nite emergency board-level debate the PR Dept at IM overcame the various and vehement objections of its Investment Division, and competition winnings, as agreed, were fully and duly dispatched to www.jairahfunds.com and will be used in the near future to build not one, but two basic but permanent dwellings for dispossessed and homeless families in Orissa!!

Hurrah IM!
Hurrah Julian!

Now vouched by the !!!Stupid Money!!! (busy making small fortunes from large ones) Ltd official Seal of Approval as a competition you may enter without fear of being bumped for any winnings!

Signed

Very Reverend Ebeneezer (Mason Boyne) Groak
(Grand Master and Ipsissimus, Church of Anthrax Northern Division)


Edited by selmahoose on Thursday 24th January 17:13

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