Intelligent Money - your investment questions answered
Discussion
selmahoose said:
Julian one thing to watch is that what you state as allowance figures (personal,dividend etc)are up to date, bearing in mind how these things vary year on year.
18/19 divi allowance changed down from £5k to £2k for example, and in a few weeks the PA will kick up a bit too....
Excellent point mate. The reduction in the div allowance was not something I factored in (and I should have).18/19 divi allowance changed down from £5k to £2k for example, and in a few weeks the PA will kick up a bit too....
Assuming someone had c. £400,000 invested (based upon a 3% distribution and no other UK based income) this would result in an additional £600 of tax.
Well spotted!
trowelhead said:
Come on Groak, Julian is the real deal!
My winnings too have been donated to a worthy cause (dogs trust)
Thanks again Julian, top bloke, nothing but respect for him and the team at IM
Cheers mate and thanks very much for your kind comments!My winnings too have been donated to a worthy cause (dogs trust)
Thanks again Julian, top bloke, nothing but respect for him and the team at IM
I know you spent a great deal of thought on your charity and after two financial awareness one's proved difficult to donate to (why would they be like that?) the dog trust was an excellent choice.
It is you that deserves the recognition (just as others have) for choosing to donate your whole prize money to great causes.
My Gmail account (linked to PH) has for some reason decided to bundle all PMs regarding this together, making it nearly impossible for me to tell who I have responded to or made payments for.
If anyone has therefore not received a response (though I think I have now gone through everyone) or a payment then please do get back to me and I will do it this afternoon.
Thanks again mate, and everyone else who went for it!
Intelligent Money said:
Hi,
We do have the same information available for all our portfolios. The summary shows 1,3,5 and 10-year performance as well as10 year annualised performance along with a breakdown of the assets and geographical areas that the portfolio uses for investment.
You can see this information on our webpage
https://www.intelligentmoney.com/private-clients/o...
In addition you can access quarterly Portfolio Fact Sheets, which provide more information on the portfolio performance and comments on the general market position from the portfolio investment Manager Tim Horrocks.
Following investment you can track your performance, with real time updates, via your own portal and make any changes you may want to via the same portal.
As a PH member your fee structure is 0.87% per annum
Our service provides you with all the information you need with simple straightforward access so you can see how your portfolio is working for you and quickly and easily make any alterations you need.
I hope his helps; please let me know if you need any more information,
Regards
Nik
Thanks Nik (& Julian too) We do have the same information available for all our portfolios. The summary shows 1,3,5 and 10-year performance as well as10 year annualised performance along with a breakdown of the assets and geographical areas that the portfolio uses for investment.
You can see this information on our webpage
https://www.intelligentmoney.com/private-clients/o...
In addition you can access quarterly Portfolio Fact Sheets, which provide more information on the portfolio performance and comments on the general market position from the portfolio investment Manager Tim Horrocks.
Following investment you can track your performance, with real time updates, via your own portal and make any changes you may want to via the same portal.
As a PH member your fee structure is 0.87% per annum
Our service provides you with all the information you need with simple straightforward access so you can see how your portfolio is working for you and quickly and easily make any alterations you need.
I hope his helps; please let me know if you need any more information,
Regards
Nik
So I mentioned that I had forgotten about this fund.....well, just as embarrassingly, I now find it is a DB scheme with what sound like reasonable benefits (6.25% increase pa, I was told when I rang them earlier).
I ought to dig deeper, but for now I guess I will leave it alone (knowing I would need IFA recommendation to move anyway).
But thanks again for rapid responses: I am sure IM will do fabulously well with or without a small bit from me!
I will compare the 'main' Aviva funds I have to compare & decide if it is worth doing something over coming months (obviously knowing past performance is no guarantees, etc etc!)
JulianPH said:
As these questions are regarding the same thing I hope you don't mind if I answer both together (and Testaburger).
Our understanding (and we are speaking to tax lawyers to have this confirmed, but so far this appears to be correct) is that that people who are non-resident in UK for tax purposes for 5 years have no CGT to pay on any capital gains made within the UK (this part is absolutely confirmed) and whilst they remain liable for income tax on distributions each year they can fully utilise their £5,000 dividend, £1,000 interest and £11,850 income tax personal allowances before having to pay any income tax on distributions (assuming no other UK based income).
This means that a 5 years+ non-tax resident can invest over £500,000 in the UK without generating any tax liability (assuming a 3% portfolio distribution and unlimited capital growth).
On the same basis a £1m investment would only pay £2,430k in tax and a £5m investment would only pay £34k in tax.
Obviously I have been very simplistic in the above, but given the principles you can see why we are looking to provide the assurance and protection an established UK based investment manager offers, rather than setting up a new off-shore venture (that would automatically be tainted by the others - see Testaburger's and DonkeyApple's comments above).
It is probably quite obvious now why launching an International Private Clients service has been so time consuming!
As with our standard service for UK tax residents, we wanted to cut through the rubbish and deliver value without unnecessary (or hidden) costs.
Cheers
Julian
Thanks for sharing - that’s my understanding exactly. As I’ve alluded to discussing with DA the merits (or often the lack thereof) of offshoring, it seems to be a pointless exercise nowadays.Our understanding (and we are speaking to tax lawyers to have this confirmed, but so far this appears to be correct) is that that people who are non-resident in UK for tax purposes for 5 years have no CGT to pay on any capital gains made within the UK (this part is absolutely confirmed) and whilst they remain liable for income tax on distributions each year they can fully utilise their £5,000 dividend, £1,000 interest and £11,850 income tax personal allowances before having to pay any income tax on distributions (assuming no other UK based income).
This means that a 5 years+ non-tax resident can invest over £500,000 in the UK without generating any tax liability (assuming a 3% portfolio distribution and unlimited capital growth).
On the same basis a £1m investment would only pay £2,430k in tax and a £5m investment would only pay £34k in tax.
Obviously I have been very simplistic in the above, but given the principles you can see why we are looking to provide the assurance and protection an established UK based investment manager offers, rather than setting up a new off-shore venture (that would automatically be tainted by the others - see Testaburger's and DonkeyApple's comments above).
It is probably quite obvious now why launching an International Private Clients service has been so time consuming!
As with our standard service for UK tax residents, we wanted to cut through the rubbish and deliver value without unnecessary (or hidden) costs.
Cheers
Julian
I appreciate back in the day, declaring non-residence for tax purposes was a slightly murky area, in which case keeping your cash out of view may have been prudent; however now non-residence is very clear cut, and on being declared as such, you’re free to repatriate cash as one wishes.
To me (notwithstanding what may be better for the provider) this makes the offshore setup somewhat redundant. That is, of course, unless a client is deliberately aiming to be ‘ambiguous’ with his tax affairs, or a non-dom.
Edited by Testaburger on Friday 25th January 16:08
mikeiow said:
Thanks Nik (& Julian too)
So I mentioned that I had forgotten about this fund.....well, just as embarrassingly, I now find it is a DB scheme with what sound like reasonable benefits (6.25% increase pa, I was told when I rang them earlier).
I ought to dig deeper, but for now I guess I will leave it alone (knowing I would need IFA recommendation to move anyway).
But thanks again for rapid responses: I am sure IM will do fabulously well with or without a small bit from me!
I will compare the 'main' Aviva funds I have to compare & decide if it is worth doing something over coming months (obviously knowing past performance is no guarantees, etc etc!)
Hello MikeSo I mentioned that I had forgotten about this fund.....well, just as embarrassingly, I now find it is a DB scheme with what sound like reasonable benefits (6.25% increase pa, I was told when I rang them earlier).
I ought to dig deeper, but for now I guess I will leave it alone (knowing I would need IFA recommendation to move anyway).
But thanks again for rapid responses: I am sure IM will do fabulously well with or without a small bit from me!
I will compare the 'main' Aviva funds I have to compare & decide if it is worth doing something over coming months (obviously knowing past performance is no guarantees, etc etc!)
Stay exactly where you are!!!
A 6.25% guaranteed return (assuming that is what it is, not a 6.25% increase in pension income - which is still highly valuable) is certainly not worth moving away from (despite what anyone may tell you).
I know this is a new thread, but IM is approaching 20 years of age and runs £2bn of client asset! I sincerely thank you for your good wishes though.
May I pass my own good wishes back to you. You have always been a top bloke here and you have my utmost respect.
Now, don't move that pension mate!
Cheers
Julian
JulianPH said:
condor said:
jeff666 said:
Unexpected Item In The Bagging Area said:
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!
PM sent.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!
My email is out of date so nothing received. I thought I was on a roll this week as I had some free gloves thru the post
JulianPH said:
jeff666 said:
I have PM'd you with my new email.
I've just emailed you back!Honestly it was a nice gesture and I would have forwarded it on to Julias House (Hospice care for youngsters) anyway so maybe you could do it for me or one of your team ?
Thanks again.
jeff666 said:
Not getting it Julian,
Honestly it was a nice gesture and I would have forwarded it on to Julias House (Hospice care for youngsters) anyway so maybe you could do it for me or one of your team ?
Thanks again.
Hi JeffHonestly it was a nice gesture and I would have forwarded it on to Julias House (Hospice care for youngsters) anyway so maybe you could do it for me or one of your team ?
Thanks again.
I managed to send you an email this morning that didn't give me a bounce back message, so hopefully you have received this!
I can donate it to the hospice directly if you prefer, I assume it is this: https://www.juliashouse.org/
Cheers
Hi again Jeff, not having heard back from you I made the donation directly on your behalf. If you did get that email then you will see I have also sent confirmation of the payment to you too.
If anyone has a lot of time to kill, there are some great laughs within the build thread:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Thanks to everyone who played the game and the generous charitable donations (£2,500 went to the charities).
If I have missed anyone out please get in touch!
If anyone has a lot of time to kill, there are some great laughs within the build thread:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Thanks to everyone who played the game and the generous charitable donations (£2,500 went to the charities).
If I have missed anyone out please get in touch!
mikeiow said:
Well, despite following the legendary pool build at the time, I can't say I have spotted the significance of the number....I hoped "forky" might be a cryptic answer, but who knows ;-)
I remember you from it, great memories!The number relates to the deadline for the build - my daughter's Birthday!
Give us a shout if you need any input regarding your Aviva pension and have a great weekend mate!
Right, returning back to investments!
There is a thread on investments below and it is starting going down the route of passive vs active (as usual!).
I thought it may be a good idea therefore to provide a basic explanation of the two approaches for those unaware (so not most people on this forum!) and contrast this with our approach.
Active management generally means that a fund manager is trying to pick companies that will outperform the market as a whole. This is usually a specific market (such a UK equities) or the wider global markets (which typically tend focus more greatly on US equities).
If you can pick the managers that will outperform their market in advance, and then replace them with the future best performer when the time is right then this will obviously give you the best returns.
However this is either highly difficult or simply impossible (depending on your stance on this!).
Passive management is where there is no manager trying to pick stocks (or bonds) but the fund simply replicates the market (or markets) it is tracking. This has the advantage of much lower costs.
Studies have shown that most active stock pickers do not consistently generate higher returns than the market(s) themselves and a great many under perform the market(s). The reason is a combination of the increased costs and the rarity of crystal balls!
So the debate between the two is often flawed as those advocating the active approach do so with examples that are only available with hindsight.
In looking forward, hindsight is a luxury that no one has.
Our management style is neither one or the other of these, but is a blend of two different approaches based upon known facts:
1) It is a fact that most actively managed funds focused on stock selection do not consistently outperform the market(s) they invest in over the long term.
2) It is a fact that asset allocation is the key driving factor in performance, not stock selection.
Our house view (which, granted, is an extension of my view) is therefore to buy the markets themselves and then use the cost savings to actively manage the asset allocation of different portfolios in line with their objectives.
The asset allocation models for each portfolio are based upon us increasing, decreasing (or omitting altogether) certain asset classes (and adding where appropriate other asset classes outside equities, bonds and gilts - such as property, gold, cash, etc.) depending upon the objectives of each portfolio.
It is a quite simple concept and anyone could do this themselves. However, it is also a quite sophisticated approach requiring significant analytic resources and a great deal of market experience though different cycles.
What we do is ensure this is properly researched, managed, executed and regularly rebalanced. We also provide the ISA and pension (with SIPP commercial property functionality), full assistance in your financial planning (through information, guidance and support) and remove the financial adviser and platform fees - at no additional charge whatsoever.
Does it work?
The short answer is yes, but in different ways than just performance alone. Over the last 10 years our Global Growth Portfolio has achieved virtually the same returns as the FTSE Global All Cap Index, but it has done so with much reduced volatility due to our exposure to cash, bonds, gilts, property and other non-equity linked assets. Sleeping well is also important to our clients.
Making money in rising markets is one thing. What about falling markets?
In 2018 the FTSE Global All Cap Index fell by 9.74%. After tracker and platform charges this would have led to a fall of over 10%.
Like everyone else, our Global Growth Portfolio also fell (sadly, for the first time since launch), but by c. 3% less than the global market did. Our Defensive Portfolio was 1.87% down (over 8% less).
So the real test in adding value by our approach is lowering volatility through asset diversification whilst still achieving full equity market returns, adding value (3% absolute) during a falling market, and using asset allocation to further mitigate risk in falling markets (8% absolute).
Sorry this has been long winded and yes, I am bored ridged checking here every 20 minutes for questions so as to give Nik this weekend off!
I think I might open a beer shortly.
Just ask me random things over the next hour if you like!!!
There is a thread on investments below and it is starting going down the route of passive vs active (as usual!).
I thought it may be a good idea therefore to provide a basic explanation of the two approaches for those unaware (so not most people on this forum!) and contrast this with our approach.
Active management generally means that a fund manager is trying to pick companies that will outperform the market as a whole. This is usually a specific market (such a UK equities) or the wider global markets (which typically tend focus more greatly on US equities).
If you can pick the managers that will outperform their market in advance, and then replace them with the future best performer when the time is right then this will obviously give you the best returns.
However this is either highly difficult or simply impossible (depending on your stance on this!).
Passive management is where there is no manager trying to pick stocks (or bonds) but the fund simply replicates the market (or markets) it is tracking. This has the advantage of much lower costs.
Studies have shown that most active stock pickers do not consistently generate higher returns than the market(s) themselves and a great many under perform the market(s). The reason is a combination of the increased costs and the rarity of crystal balls!
So the debate between the two is often flawed as those advocating the active approach do so with examples that are only available with hindsight.
In looking forward, hindsight is a luxury that no one has.
Our management style is neither one or the other of these, but is a blend of two different approaches based upon known facts:
1) It is a fact that most actively managed funds focused on stock selection do not consistently outperform the market(s) they invest in over the long term.
2) It is a fact that asset allocation is the key driving factor in performance, not stock selection.
Our house view (which, granted, is an extension of my view) is therefore to buy the markets themselves and then use the cost savings to actively manage the asset allocation of different portfolios in line with their objectives.
The asset allocation models for each portfolio are based upon us increasing, decreasing (or omitting altogether) certain asset classes (and adding where appropriate other asset classes outside equities, bonds and gilts - such as property, gold, cash, etc.) depending upon the objectives of each portfolio.
It is a quite simple concept and anyone could do this themselves. However, it is also a quite sophisticated approach requiring significant analytic resources and a great deal of market experience though different cycles.
What we do is ensure this is properly researched, managed, executed and regularly rebalanced. We also provide the ISA and pension (with SIPP commercial property functionality), full assistance in your financial planning (through information, guidance and support) and remove the financial adviser and platform fees - at no additional charge whatsoever.
Does it work?
The short answer is yes, but in different ways than just performance alone. Over the last 10 years our Global Growth Portfolio has achieved virtually the same returns as the FTSE Global All Cap Index, but it has done so with much reduced volatility due to our exposure to cash, bonds, gilts, property and other non-equity linked assets. Sleeping well is also important to our clients.
Making money in rising markets is one thing. What about falling markets?
In 2018 the FTSE Global All Cap Index fell by 9.74%. After tracker and platform charges this would have led to a fall of over 10%.
Like everyone else, our Global Growth Portfolio also fell (sadly, for the first time since launch), but by c. 3% less than the global market did. Our Defensive Portfolio was 1.87% down (over 8% less).
So the real test in adding value by our approach is lowering volatility through asset diversification whilst still achieving full equity market returns, adding value (3% absolute) during a falling market, and using asset allocation to further mitigate risk in falling markets (8% absolute).
Sorry this has been long winded and yes, I am bored ridged checking here every 20 minutes for questions so as to give Nik this weekend off!
I think I might open a beer shortly.
Just ask me random things over the next hour if you like!!!
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