Intelligent Money - your investment questions answered

[Intelligent Money]

911pleb said:

This is definitely something I know the answer to, but for the benefit of everyone else; what type of ISA is an IM ISA? Stocks and shares? Or another type?

As I understand it, I'm only allowed one S&S ISA open at any given time, correct?

The IM ISA is a stocks and shares ISA and you are only allowed to contribute to one stock and shares ISA per tax year.

So you can hold S&S ISA's with as many companies as you like but you can only pay into one during a given tax year.

Cheers

Nik

[Intelligent Money]

Hi All,

Not strictly a finance thing so my apologies. As I think some of you know my stepson is having a rough time after a bike accident and faces a tough recovery period.

On the plus side he has been nominated for video of the year by Pinkbike, the Pistonheads of the MTB world. He is up against some big hitters in the MTB world so if you are so inclined it would be great if you would head over to the site take a look at the video and give him a vote.

Not the type of thing I would normally ask but it would give him a lift right now,

https://www.pinkbike.com/news/2020-pinkbike-awards...

His video is "Luke Cryer X Tommy C"

Scroll down to the bottom to vote

Thanks for reading

NIk

[Intelligent Money]

joshe90 said:

Voted great stuff, looks like Sherwood Pines?

Hi Josh,

Thanks for the support, it is some off piste stuff around Cannock and a but a Stafford skate park.

Thanks Again

Nik

[Intelligent Money]

Thanks to all for the support for Luke,

Not expecting to get close to winning but he is just delighted to have been nominated and seeing the votes is a good tonic for him right now

Thanks again

Nik

[Intelligent Money]

2Btoo said:

OK, here's a question that won't fit well in the flow of the current thread but I'll ask it anyway. And, for perspective, I have a fair chunk of money in IM and greatly appreciate the service and performance that Julian, Nik and the rest of the team offer. My wife and I have talked to Nik on a couple of occasions and the suggestions he has given have made possible a big life change we made this summer. Many thanks to Nik and Julian for this.

However, the question .... why is IM doing all this fantastic stuff for PH-ers at such a low price? I am aware that there is a profit being made on us as there is a percentage of total holdings taken as a fee. This is a good thing as Julian et al are running a business and they need to put food on the table; profit is not a dirty word. But by waiving the opening fee and offering such excellent suggestions (not advice) they are surely missing out on other, better-paying work elsewhere? Every minute Nik and Coops spend posting on here is a minute which they could be charging to a paying client elsewhere. As a capitalist this makes no sense. As a business owner this makes no sense either; IM should be returning a better return for it's shareholders.

As a recipient of such largess I almost feel rude asking the question. Please forgive me - there is no ingratitude or offence meant.

Hi 2Btoo

Thank you for the feedback and good to know that you have found the IM Private Client experience to be a good one.

You ask a very fair question and one that is often asked by clients considering using us.

The short answer is because we can!

The detailed answer is a little longer.

As has been mentioned elsewhere both Julian and I have been lucky enough to gain a few years experience in the Finance arena and also been lucky enough to be able to step back and make the decision to do what we want to do and something that we enjoy.

Julian had built IM as a successful and profitable business so when he tempted me off my bike to build Private Clients with him, we were able to build a business model based on long term growth not short term upfront fees and a business we are passionate about and wanted to build.

We launched it on PH as a testing ground to make sure what we were building was what was needed and so the PH deal was on the basis that if we got it right people would use us and it would make a profit, but also on the basis that we would gain invaluable firsthand feedback on what we got right and what we needed to change. The service and the portfolios have evolved based on the feedback that we have received and the experience that you as clients have had and that has been invaluable to us.

We also wanted to strip out costs without cutting back service so by offering guidance we believe you aren’t forced to pay for advice if you don’t need it and we are happy to share our experience, explanations and guidance at no cost on the understanding that you are responsible for the decisions that you make.

If you decide that the portfolios and Pension,ISA or GIA we offer are right for you we are able to keep the costs competitive because we provide all the component parts.

That is the practical stuff, but ultimately both Julian and I are driven more by the desire to do something different and offer something that people value and it is more about the satisfaction of “worthwhile work” than turning huge profits.

The model is profitable, which was one of our measures of success and needed for longevity, but we also needed it be fair and offer value and are in the fortunate position that we have no need to “milk” the business in the short term, so it has time to grow and offer value to us as well as you as clients.

Sorry if all sounds a bit evangelical but it is really a labour of love for us so I can get carried away.

Or maybe renmure is correct I’m only in it for the biscuits

Cheers

Nik

[Intelligent Money]

2Btoo said:

Intelligent Money said:

Hi 2Btoo

Thank you for the feedback and good to know that you have found the IM Private Client experience to be a good one.

You ask a very fair question and one that is often asked by clients considering using us.

The short answer is because we can!

The detailed answer is a little longer.

As has been mentioned elsewhere both Julian and I have been lucky enough to gain a few years experience in the Finance arena and also been lucky enough to be able to step back and make the decision to do what we want to do and something that we enjoy.

Julian had built IM as a successful and profitable business so when he tempted me off my bike to build Private Clients with him, we were able to build a business model based on long term growth not short term upfront fees and a business we are passionate about and wanted to build.

We launched it on PH as a testing ground to make sure what we were building was what was needed and so the PH deal was on the basis that if we got it right people would use us and it would make a profit, but also on the basis that we would gain invaluable firsthand feedback on what we got right and what we needed to change. The service and the portfolios have evolved based on the feedback that we have received and the experience that you as clients have had and that has been invaluable to us.

We also wanted to strip out costs without cutting back service so by offering guidance we believe you aren’t forced to pay for advice if you don’t need it and we are happy to share our experience, explanations and guidance at no cost on the understanding that you are responsible for the decisions that you make.

If you decide that the portfolios and Pension,ISA or GIA we offer are right for you we are able to keep the costs competitive because we provide all the component parts.

That is the practical stuff, but ultimately both Julian and I are driven more by the desire to do something different and offer something that people value and it is more about the satisfaction of “worthwhile work” than turning huge profits.

The model is profitable, which was one of our measures of success and needed for longevity, but we also needed it be fair and offer value and are in the fortunate position that we have no need to “milk” the business in the short term, so it has time to grow and offer value to us as well as you as clients.

Sorry if all sounds a bit evangelical but it is really a labour of love for us so I can get carried away.

Or maybe renmure is correct I’m only in it for the biscuits

Cheers

Nik

JulianPH said:

I want to send a massive thank you to everyone who has answered this question.

Yes, we do it because we want to, not because we have to.

A journalist wrote in the Financial Times nearly 20 years ago "Penniston-Hill is a rarity in the financial sector, someone who believes there is a moral case to answer". I was very proud when I read that.

Yes, we are a business and we make a very healthy profit, but we do this by doing the right things for our clients, rather than charging as much as we can get away with.

It is the same with our stance on our team member's salaries. We pay what you are worth, rather than what you can get away with. This, and our overall culture, is why we have such a long standing team.

We wanted to show there is a different way of doing things in the investment sector and I thank you for your very kind words acknowledging we are achieving this.

Cheers

Julian

Nik, Julian,

Thanks - both for your efforts and answers. They are appreciated.

It does occur to me that if you suddenly wanted to change tack and charge a 10%-per-day management fee then you'd have much of PH by the goolies. However investing with a company involves placing trust in them and I don't think that this trust is mis-placed.

Thanks again. And please keep doing what you are doing!

Hi 2Btoo

There are no exit fees or minimum investment periods with us so you can take back control of your goolies if you ever feel they are at risk!

Part of our ethos is that you should stay with us for along as you feel it is right for you and you should be free to leave at anytime you feel you want to. It keeps us honest and keeps your goolies in safe hands!

Cheers

Nik

[Intelligent Money]

Llandudno said:

Llandudno said:

I have a SIPP with Fidelity with 15 or so holdings. I wish to have a SIPP with IM using a proportion of the funds in the Fidelity SIPP.

Do I liquidate what I require in Fidelity and specify a set cash amount when I open the IM account? I note there is a partial transfer Y/N option on the transfer form.

Thanks!

Hi guys, any idea?

Hi Llandudno,

Sorry I missed this one. If there are specific stocks that you want to keep in your Fidelity SIPP just liquidate the others and as you say set the liquidated amount as the expected transfer value and select partial transfer. If you add a note to the application to confirm that it is the cash amount that you wish to transfer that will belt and brace it for you.

Cheers

Nik

Edited by Intelligent Money on Friday 8th January 09:24

[Intelligent Money]

PorkInsider said:

Intelligent Money said:

Hi Llandudno,

Sorry I missed this one. If there are septic stocks that you want to keep in your Fidelity SIPP just liquidate the others and as you say set the liquidated amount as the expected transfer value and select partial transfer. If you add a note to the application to confirm that it is the cash amount that you wish to transfer that will belt and brace it for you.

Cheers

Nik

Err... do we have any of those in PHR???

Oops fat fingers moment!! Edit required !!

[Intelligent Money]

mikeiow said:

So: perhaps needs a direct & detailed chat (feel free to call, Nik!), but a question I imagine others might like the answer to as well, so perhaps worth getting the high level answer here!

I am considering moving some of my Aviva pension - likely some of the crystallised portion - to IM for drawdown over the next couple of years. Need to speak with them too - this is far from a decision, but more an explorer the options, & understand the nitty gitty 'mechanics' of how things can work.

I can see from this list that IM is in the Origo Options thing that allegedly makes things quicker/easier

Main high level questions:

1. What are the steps to move it sums across? (I currently have no pension with IM)
2. How do you note it is crystallised (eg, what if I also, or separately later, moved some non-crystallised sums to it)?
3. What are the steps to then withdraw sums from it - either ad-hoc, or regular?
4. If regular sums are drawn - how fast/easy is it to change that, either up/down or to "halt the tap" for a period?

Thanks!

Hi mikeiow

Happy to answer on here, just let me know if you need any more detail.

As you are already a client just log into your dashboard and select add new on the top right and you can add a pension here. If you already had a pension just scroll down to the transfers section and select add new to add a new transfer.
You just then add the details of the current scheme and we will take care of the transfer.

There is a crystallised/non crystallised question on the application and also the option to partially transfer if you only want to move some of the existing scheme across.
Once the funds come across it will also be noted as part of the transfer that the funds we have received are crystallised or not.

For your first withdrawal there are some forms to complete, takes about 5 mins, we are in the process of making this an online process but for the time being it is manual. This can either be to set up a single withdrawal or a regular one.

It is then just a case of an amendment for future changes, this is often just an e-mail confirmation.

From application for first payment to cash in your bank is typically 7-10 days. Future changes are dependent on the availability of your funds, If we need to sell down to make your payment it can be 5-7 days if the cash is available 2-3 days.

Cheers

Nik

[Intelligent Money]

mikeiow said:

Thanks Nik & Julian!
I get that I can tell you the number ("partial" transfer), but one "complexity" is that my Aviva just shows a single number, with a portion of it in drawdown - albeit currently spread across 4 funds.
The numbers below the funds do NOT differentiate between the drawdown and uncrystallised amounts.....although clearly Aviva should know this.

How can I ensure the money ONLY moves from the drawdown portion - I imagine that might need driving from the Aviva end?

That is important (from a tracking LTA perspective, for me at least!)

Hi mikeiow

We can request that only crystallised funds are transferred. Ahaed of the transfer you can ask Aviva what the crystallised value of you pot is and that will help make sure it all comes across, otherwise just tell us how much you want to transfer and that it should only be crystallise funds and that's what we will move for you.

Nik

[Intelligent Money]

leef44 said:

Dear IM

If I have a lump sum and have used up my ISA allowance, I would like to set up a GIA then annually move funds from GIA to ISA.

I would do so within chargeable gains tax allowance.

I presume if I use PH2607 code then I can make initial investment into GIA with no initial charge.

When I make annual transfers from GIA to ISA, will that be free of charge?

If I keep the same funds e.g. OGG GIA to OGG ISA then does that mean it's just an "accounting" transaction and no funds need to be sold down and bought back so I won't see any gains/losses in timing?

Hi leef44

PH2607 will remove the initial charge and once you are set up with that code it is for life and all future transactions so applies to your account forever.

There is no charge to switch between portfolios and no charge to set up a new ISA, Pension or GIA.

To move from a GIA to the ISA we do need to sell the assets down and then reinvest them as it is technically a different account and we need to be able to demonstrate the contribution amounts to an ISA to HMRC for a given tax year.
It also keeps the "disposal" calculation for CGT purposes in the GIA clean.
We are working an a Bed and ISA process to allow you instruct it all online and we do the heavy lifting behind the scenes. We trying hard to get it in place before the end of the tax year.

Cheers

Nik

[Intelligent Money]

Bear-n said:

I am never going to post on this thread again, as I have no idea what most of you talk about. But had a chat today with Nik about investing some of my meagre savings and what a helpful and informative chat it was. Sure, the poor guy has probably repeated it all a thousand times before but it was really appreciated and he didn't make me feel like an idiot, nor treated me any differently for not being a powerfully built...etc.

I've put a smallish portion of savings in for now and hopefully will learn a bit as time goes by, eventually getting the confidence to invest more, but (without wanting to sound sycophantic) thanks for the opportunity and advice available to 'normo's' like me without the initial charges and minimum investment.

I look forward to watching the stream of profits roll in, day on day. That's how it works, right?

Hi Bear-n

It was good to chat with you earlier and I'm glad you found it useful. Welcome to Private Clients.

Nik

[Intelligent Money]

Kingdom35 said:

Simpo Two said:

dingg said:

Is compass group anywhere near its target price yet??

Chartwells the company that's been sending out those woefully inadequate food parcels is part of the company, I'm hoping we get rid tbh

With my unethical hat on I'd say the less food they put in, the greater the profit and share price. And besides, how much do people expect for free?

A little more than £5 worth. There are levels to this investing game surely.

It's a very difficult line. We hold fairness, treating people well and making sure everybody gets value and isn't exploited very close to our hearts as core business and life principles.
We wouldn't knowingly place an investment based just on the numbers if it was clear that the numbers were achieved by exploitation or by unfair means. In this case it is one company that is part of a bigger group and I think it is fair to say that while the headline news clearly shows something has gone wrong and is not something any of us should be comfortable with, we also don't have the whole story yet.
In addition it is a holding that we already have and we have a duty of care to all the clients that are invested so selling out at a loss as a knee jerk to a news headline is unlikely to meet that duty of care. In these cases we need to take a pragmatic view and separate the moral issue from the financial one to balance them out and if exit is the right path to take do that in an orderly fashion at the earliest beneficial position.

Cheers

Nik

[Intelligent Money]

leef44 said:

Thank you Nik for the quick response.

Just to be clear, since I already have an ISA account, is it merely a matter of logging in and adding a GIA or do I need to enter the promotion code again when I add?

Hi leef44

Just log in and add the GIA, the PH code is already held in your account so no need to add it again

Cheers

Nik

[Intelligent Money]

EddyP said:

If I want to have a chat to Nik or someone about investing should I just call the office number tomorrow? Or would you guys prefer emails?

Hi EddyP

Drop me an e-mail at [e-mail] and we can set a call up.

Cheers

Nik

[Intelligent Money]

superlightr said:

adding £1000 to my ISA yesterday but the IM dashboard wont accept £1000 it reverts it to £1 when I click next etc.
I can add £500 or £999 or any other amount save for £1000 - is that just a glitch or user error? Its a non issue as £999 went in ok instead.

Hi superlightr

I have passed this into the tech team, thanks for letting us know

Nik

Edited by Intelligent Money on Thursday 14th January 10:13

[Intelligent Money]

CornishRob said:

Hi IM team,

Couple of website ideas:

Is it possible to show how much of the years ISA allowance you have remaining? I had this with my previous Nationwide ISA and it was helpful to know. I mostly drip feed, and I've now lost track - Unless there is another way to view this?

Is there a way to show all the transaction on your account? Mine only seem to show back to October 2020.

Is it possible to show how much money has been paid into a particular fund, and how much its now worth?

Is it possible to have a way of resetting the fund performance if you have previously emptied your involvement in a particular fund? For example, I started a £50 monthly contribution into PH Equity for my daughters JISA. My daughters PH Equity Growth % is currently showing as -10.64. I made a £50 contribution into PH Equity on 11-01-2020 and its now worth £49.29. That isn't -10.64 % down, so it must be looking back at past transactions as well (I previously had some money in there before I moved it into PHR). I think its a mess as i set up the direct debit instruction to go into PHE, but I was then moving it into PHR fairly soon after.

Thanks all.

Hi CornishRob,

Thank you for the feedback, we are looking at all of the above which is good news in that it seems we are on the right tracks. The team are working through a couple of options to see if we are better to change a couple of areas at a time or try and pull a number of things into a "look and feel" overhaul that we are working on.

We are hoping that we should be ready to go with an update soon.

Nik

[Intelligent Money]

i4got said:

Nik

One of the most useful things I would find is more certainty around timings of instructions. It seems (to me at least) that there must be manual activity that takes place between switching funds/cash online and the corresponding action.

The email to say that the switch is in progress seems to take place at a fairly random period of time after you carry out the request. It could be an hour later or it could be next morning before you receive this. The gap between the In Progress and Complete emails is generally pretty short, if not simultaneous.

So there is no email that automatically takes place as soon as you chose the switch money option - a switch received email.

Add this to the fact that the on screen audit trail shows only the date and not the time and it makes it difficult to see when exactly you requested it.

So the changes in summary would be.

1. Add a new automated email to the 2 existing one (Switch in Progress and Switch Complete) - called Switch Initiated.

2. Switch Initiated email to contain estimated date//time when action will be complete.

3. Would it also be possible to add back-end automation to remove/reduce any manual activity so that same day switch can take place with a pre-midday request with a higher degree of certainty?. I believe the web site does suggest this is the case but in my experience its is not always the case. (If the switch involves two steps with, say an interim movement via cash, I assume same day transfer is off the table?)

Cheers.

Hi i4got

The switch update process does need some attention and we are working with the custodian to make it as automated as possible. I will include your suggestions in with the development roadmap that we have,

That said there will more often than not be a need to sell to cash and then re-invest in most switches as we hold more than one asset in each portfolio and each asset may have a different timeline to sell down to make cash available for the new purchase so same day transfers from one portfolio to another are difficult if not impossible to execute.

Cheers

Nik

[Intelligent Money]

i4got said:

If I'm holding cash and dripping it in then I'd rather do that on a down day (maybe psychologically). eg PHR is more than 3% down today as I type. Thats £600 extra in your ISA than if you'd invested yesterday. If I did the switch to cash at 10am I'd be a bit pee'd off if it got executed tomorrow morning after say a sharp percentage jump. Yes, over time the £600 may become less meaningful but I'd still rather be compounding the £600 than not.

Plus if is a product that requires some market executions then there's no reason for it to take multiple days.

Where the transaction is from cash into a portfolio we will always try to execute that on the same day, and the automation we are building will ensure that this is the case. We will always be an investment rather than trading platform though, so the trades are placed once a day and the valuation you see each morning is based on close the day before so while you will be able to get a ball park idea of market movement you will struggle to instruct a buy or sell at a known or specific price.

Cheers Nik

[Intelligent Money]

xerawh said:

IM team,

I've just seen the message on the rebalance happening next week.

I may need to sell down some funds to pay for a property in 2 weeks but don't know yet - is there a way to be able to cash out some if needed (you've said no withdrawals from funds until 8 Feb which may be too late for me).

Sorry to be a pain

Xerawh

You have mail

Nik