Your questions answered Vol 2 - IM Private Clients

[Intelligent Money]

Hussein-z3ksd said:

Am i right in assuming IM Sustainable has been running since 2018? If so (just curious) was it only for certain investors but is now being opened up to others?

As a note, the numbers look good so far :-)

Hi Hussein-z3ksd

IM sustainable is still not fully up and running, we are finalising the asset allocation at the moment, the tech team posted the test to the live site rather than the sandbox in error last week.

The data in the test was based in a "close to" asset allocation and was synthetically back dated.

More news in is imminent.

Cheers

Nik

[Intelligent Money]

Grandad Gaz said:

How is Julian getting on with his treatment?

It’s been a while since we had any updates.

Hi Grandad Gaz

He is doing well, enjoying a life a leisure a little too much for my liking!!

He is following doctors orders for once and actually finding some time to relax, his energy is focused on finalising the sustainable portfolio keeping the other portfolios on track and a couple of other projects that we have in the pipe.

He will appreciate you asking after him thank you

Nik

[Intelligent Money]

tight fart said:

Can you withdraw your uncrystallised part of you pension (55+ Held in PHE)
And move it to an ISA, and hold that in PHE? (or any other IM fund)
And would there be any disadvantages in doing so?

Hi tight fart

You can move your pension funds over after age 55, There are pros and cons to moving pension funds into an ISA.

For the "tax free" lump part of your pot there is little advantage in moving the money over and you will be using up your ISA allowance for funds that all ready in a tax advantageous wrapper.

To make use of your personal allowance for some of the income part of the pension pot it can be advantageous if you have part or all of allowance available as you can shelter the funds from income tax when you draw them at later date.

Cheers

Nik

[Intelligent Money]

B9 said:

I understand there's a 40k cap per annum on pension contributions and an element of carry over from unused previous years allowances

Hypothetically if someone started contributing today and earned £100k, could they salary sacrifice 80k this year to take advantage of previous unused allowances, or does it need to be done via SIPP?

I understand some rules about not contributing below minimum wage, or more than you earn in a year. How does this work if you're salary sacrificing, as wouldn't your 'salary' would be £20k according to HMRC?

Hi B9

A couple of areas to consider with this question.
1) For personal contributions the limit is £40k or 100% of your earnings, which ever is the lower.
2) You can then carry forward unused contributions from the previous 3 years, as long as you had a scheme in place that you could of contributed to, irrespective of wether you did or didn't contribute. Your contribution limit for the previous 3 years is £40k for each year.
3) You will only get tax relief on contributions up to 100% of your earnings in the year that you contribute.

You can make employer contributions of £40k p.a. irrespective of your earnings and you can again carry forward unused contributions from previous years.

So in your example the "salary sacrifice" of £80k is treated as an employer contribution so isn't dependent on your salary. You can make employer contributions into a SIPP.

Regards

Nik

[Intelligent Money]

Carbon Sasquatch said:

Interested in this bit -

Burwood said:

You must have been a member of a pension scheme (I think, no matter how long ago). Best discuss with Nik who can determine your precise position

Do you need to contribute to the same scheme ? or can you open a new one and make backdated contributions as long as you haven't made contributions elsewhere in the last 3 years ? Or does it need to go into the dormant scheme ?

Hi Carbon Sasquatch

You can contribute to any existing scheme or set up a new scheme. You can use up nay unused allowance so if you contributed less than £40k in any of the last three years you can "top up" these years.

Regards

Nik

[Intelligent Money]

B9 said:

Thanks, as always Nik

Any timescale on PHS?

Hi B9

An e-mail should be on the way out today, IM Optimum Sustainable will be available later today and PH Opportunities will be added in the next couple of weeks.

Cheers

Nik

[Intelligent Money]

JapanRed said:

Glad you are on the mend Julian.

Julian, Nick, Coops et al: a penny for your thoughts on where inflation might be heading over the next couple of years?

Cheers. Rob

Hi Rob,

It will take more than a penny!!

As has been said UP is the obvious answer, how far is the million dollar rather than 1 penny question. Difficult to tell at the moment, commodities seem to be driven by low supply, high demand and a slow response/ability/desire to fill that gap rather than a pure increase in supply cost. This supply gap will be filled so at that point we will get a better idea what the real additional cost of supply is, post Covid and Brexit.
Consumers appear to have a pent up purchase desire and have built up reserves during lock down so in the short term have the funds to meet the increased costs, this will also likely pass and we will then see the supply/demand/ability to pay balance return.
In addition we wont really have a clear picture on the employment stats until we see the restrictions and furlough filter out of the system.

In summary a lot of moving parts and until we some of the transient influences move through the system it is difficult to see the underlying picture.
I wouldn't expect to see any major reaction to short term rises but the banks will have a watchful eye and if required I feel they will take action to keep things under control and as mentioned it is likely to be a global rather than regional issue.

So up, maybe more sharply that we normally expect in the short term, the general market/economic cycle is likely to correct/control this in the medium term but the banks may also step in if needed in the longer/medium term.

Cheers

Nik

[Intelligent Money]

PM3 said:

Ok Chaps (and those who identify at whatever ) at Intelligent Money , i'll kick off Tuesday with a question that is probably just showing me up as a numpty .
In regards to the IM INDEX funds , the guide on the website shows a pie chart of the typical spread of which I use the Idex 60 only as example




The element in Blue calls out " fixed interest overseas" but he prospectus say " UK Index Linked Gilts"
It's possible I am just stupid or its semantics, but as I am specifically interested for my next investment element to reduce my over all exposure to overseas currencies ......what is the story ?

Hi PM3

Apologies for the confusion it is a missed web update at our end that has caused the confusion.
The bond and fixed interest sector has struggled both during, and as we now come out of the pandemic. Our investment approach has changed to accommodate this and we moved to include a border spread for the non-equity element of the Index Portfolios. This does now mean we take a more worldwide approach rather than just UK Index Linked Gilts.

Regards

Nik

[Intelligent Money]

superlightr said:

Noticed on the IM dashboard I have done a full transfer out to another product with IM to effectivly close out one product you get a few weeks/month later a few pence re-entering that holding ie £0.39p

Would it be possible for anything really small instead of being paid back into the zero holding to just go into cash? The aim of closing say an IM Cautious was because I dont want anything in it. I can understand if not possible as i guess the funds re entering are dividends from when I did hold some funds but would be neater for this to go to cash.

Hi All

Seen a couple questions on this, any divi's, interest or income payments that land after a transfer out have to go into the portfolio that they were allocated to as this is the portfolio that generated them and so is the place that custodians will allocate to.

We are looking to add a feature that will let you know when divis/income payments have been made so you can identify what the payment is and where it came from.

Cheers

Nik

[Intelligent Money]

superlightr said:

Intelligent Money said:

superlightr said:

Noticed on the IM dashboard I have done a full transfer out to another product with IM to effectivly close out one product you get a few weeks/month later a few pence re-entering that holding ie £0.39p

Would it be possible for anything really small instead of being paid back into the zero holding to just go into cash? The aim of closing say an IM Cautious was because I dont want anything in it. I can understand if not possible as i guess the funds re entering are dividends from when I did hold some funds but would be neater for this to go to cash.

Hi All

Seen a couple questions on this, any divi's, interest or income payments that land after a transfer out have to go into the portfolio that they were allocated to as this is the portfolio that generated them and so is the place that custodians will allocate to.

We are looking to add a feature that will let you know when divis/income payments have been made so you can identify what the payment is and where it came from.

Cheers

Nik

I just feel really bad when clicking on the transfer out button for a few pence as I imagine Coops running around like a mad thing with different coloured crayons and pressing buttons just for my 39p when Im sure he has better buttons to press and colouring in boxes and graphs to do.

Colouring in is Coops's key strength

[Intelligent Money]

cavey76 said:

Hi Forummers, I am looking for some comments re my brothers financial situation. I know the answer is likely, "its more complex than that, speak to an IFA" and we probably will but just want to check my thinking.

- Brother is 65, partner in a law firm in Scotland. For one reason or another its going a little pear shaped and the value of his share of the business is minimal.
- His wife is 60 and a civil servant who has mostly worked part time.
- Due to brothers partnership status and hence business ownership things like mortgage, now long gone, have mostly been in the wife's name.
- He is considering retirement, has a £2xxK in cash savings/inheritance between him and wife but no pension provision i am aware of but there maybe a long since contributed too personal plan somewhere as he is the right vintage.
- Wife has civil service pension, part time salary so i cant imagine she pays in huge amounts.

Would i be right in thinking that SIPP would be a good vehicle for either of them? And that especially his wife, if she has minimal part time civil service contributions she could back date some of the cash into previous years to a delta between what she contributes via work and her max annual allowance.

If he did have some legacy pension provision he could likewise back date for up to 3 years thereby sheltering his cash savings in the SIPP. If he doesnt have existing pension provision this wouldnt be possible.

In theory then the benefit for either of them is they could contribute into the SIPPs, claim the tax rebate element, thereby topping up by their marginal rates and then, almost immediately remove their 25% tax free amount before managing out the rest over the coming years at the most tax advantageous rates versus their incomes at the time?

They(my brother especially) are hype risk averse, sometimes i wonder how we came from the same mother. For instance working in tech i have given him good tips over the years but his attitude is, "Zoom is a stupid name for a company, not investing in them, why cant they be called something like BP or Shell?"

yes it's that painful!

Thanks in advance
Cavey

Hi Cavey

As a couple of people have said the limiting factor for tax relief is likely to be earnings in the year of contribution. While you can carry forward contributions from three previous years the maximum tax relief is based on earnings in the year of contribution.

I'm very happy to take a look at the situation for you and share some thoughts. drop me a message at [e-mail]

Cheers

Nik

[Intelligent Money]

Insurancejon said:

is PHO (hmmm noodle soup) ready yet?

Hi Jon,

Shifting sands and strange government policy have lead to a little bit of navel gazing!! We have the core of the portfolio all ready to go and have a formal committee meeting on the 29th to confirm the outliers so hope to be ready for the end of the month.

Nik

[Intelligent Money]

CAPP0 said:

markiii said:

I thought he's since said they were selling it down for us?

Yes, that's been posted now, but since the post on 7 July which said it was up to us to manage, PHR is down about 13% - my point being, this thread shouldn't be the only place where that is announced? I certainly didn't see it, for the aforementioned reasons, and may have acted differently if I'd been aware.

Any change in policy will always be communicated by e-mail to all Private Clients. The PH community is only part of our Private Client population so the forum would not reach all clients.

In this case the forum post was ahead of the formal communication.

The forum offers us a great "sounding board" and we often modify our thinking or approach based on the feedback we get. In this case the feedback was that we should continue to manage the PHR portfolio as originally intended so we reverted back to that approach.

No e-mail communication was sent as the policy hadn't changed.

The structure of PHR was established in a way that would "ring fence" gains achieved on each stock by selling it down when it reached a point that we believed was a good time to exit. This would always mean that the last stocks held would be the "laggers". The changing impact of the pandemic has meant that they have fallen back and may take a while longer to recover but that was always a risk with this approach. We have managed to exit 10 of the 13 stocks with a good profit and intend to do the same with the remaining three.

Nik

[Intelligent Money]

Burwood said:

Mr Whippy said:

Burwood said:

Mr Whippy said:

Just out of curiosity on Phooey's request about days of dips...

If I have cash in IM, and do a buy on PHO or PHE, it's usually done pretty quickly.

I assume buying in that manner is just as effective as IM buying at their side? (assume you track all the parts of the funds and watch for dip days)

No, when you transact the fund, literally what that fund holds is bought and sold daily. Every holder of the fund has their instructions tallied by 9.30 and a file is sent to the broker for execution at 4pm. Each fund has a weighing per stock component and that drives the individual trades. Periodically, weighings can get out of whack due to individual stock performance. This is a rebalancing process which brings it back into line. Cash is invested daily (to answer your question). It's selling that takes trade day+3 working days as that is what the exchanges typically prescribe for cash equities.

So you need to be in before 9:30am, to get it actioned that day by the broker at 4pm ish.

So you’d need a crystal ball for any action between 9:30am and the buy at the end of the day.

I suppose if you’re putting a chunk in at once it makes sense then to have a preferential dip buy order (assuming it doesn’t just go up and up from the point you ask!) to save a few £££

Check with Coops. It might be 9am and there is no crystal ball gazing because you’re committed at 9am local for that day

Hi gents,

Buy or sell requests received before 9:30 are actioned the same day, received after 9:30 they are actioned the following day. The deal typically takes place between 3:30 and 4:00 p.m. While getting the right price is part of the Investment process we are an investment platform rather than a trading platform. PHO is looking to take advantage of medium term growth opportunities, although we will take shorter term opportunities where they present themselves. Against this mandate the price variance over a few hours has a limited impact.

Cheers

Nik

[Intelligent Money]

Munter said:

Anybody else having problems with login security check codes sent to the phone? As in not getting a code, then resend gives this

This should all be fixed now

Cheers

Nik

[Intelligent Money]

Ron-ski said:

Phooey said:

I thought selling down a fund/portfolio was something like T+2or3?

See this post from just a few days ago, my instruction was sent Tuesday night, and was acknowledged as in progress by 09:22 Wednesday, so should have been actioned the same day. It doesn't state how long the funds take to come in though.

Intelligent Money said:

Hi gents,

Buy or sell requests received before 9:30 are actioned the same day, received after 9:30 they are actioned the following day. The deal typically takes place between 3:30 and 4:00 p.m. While getting the right price is part of the Investment process we are an investment platform rather than a trading platform. PHO is looking to take advantage of medium term growth opportunities, although we will take shorter term opportunities where they present themselves. Against this mandate the price variance over a few hours has a limited impact.

Cheers

Nik

Hi Ron-ski

I have mailed you directly but for clarity, we place the sell instruction as detailed above, the funds are then typically available T+3-5 dependent on the underlying asset to be sold.

Cheers

Nik

[Intelligent Money]

PM3 said:

Mine updated at some point when out this morning , but weird things continue to show . eg , my PHO which I have been in now 3 days reporting shows up today compared to yesterday, but the "growth" went worse again not slightly better . It's only the feeling of what to believe and what to trust the DBA will eventually get a grip of ;that gives me the slightest feeling of unease .
People ( rightly ) say just look at it less as It sall in for long run but I cant help it ....maths errors and database "slippage" just does not compute for me.
Sorry for the non constructive and ultimately unhelpful post but I do live in hope on the wider /longer view and otherwise pretty happy

Hi PM3 and all commenting on feed issues

Apologies for the continuing feed issues, We are meeting with the custodians next week to get to the bottom of the very frustrating bugs in the system. There are a number of moving parts in a live feeb update and one bug has had a knock on effect to the API link.

Rest assured that it is just the feed that there is an issue with and the funds remain invested as they should, it is just the link that requires attention. Unfortunately as we use a live link, the varies attempts to chase the bugs out of the system will be seen on your dashboard and the graphs will look at little strange at times!

We will provide an update on progress next week but please be assured that it is a priority for us to get it sorted.

Regards

Nik

[Intelligent Money]

PM3 said:

Mine updated at some point when out this morning , but weird things continue to show . eg , my PHO which I have been in now 3 days reporting shows up today compared to yesterday, but the "growth" went worse again not slightly better . It's only the feeling of what to believe and what to trust the DBA will eventually get a grip of ;that gives me the slightest feeling of unease .
People ( rightly ) say just look at it less as It sall in for long run but I cant help it ....maths errors and database "slippage" just does not compute for me.
Sorry for the non constructive and ultimately unhelpful post but I do live in hope on the wider /longer view and otherwise pretty happy

Hi PM3 and all commenting on feed issues

Apologies for the continuing feed issues, We are meeting with the custodians next week to get to the bottom of the very frustrating bugs in the system. There are a number of moving parts in a live feeb update and one bug has had a knock on effect to the API link.

Rest assured that it is just the feed that there is an issue with and the funds remain invested as they should, it is just the link that requires attention. Unfortunately as we use a live link, the varies attempts to chase the bugs out of the system will be seen on your dashboard and the graphs will look at little strange at times!

We will provide an update on progress next week but please be assured that it is a priority for us to get it sorted.

Regards

Nik

[Intelligent Money]

maccboy said:

Where is this evidence of which you speak?

I'm just back from charging !

Cheers

Noops

[Intelligent Money]

howardmarks said:

Don't have a "dashboard ". No response at all.

Hi Howardmarks

If you have opened an account with us you should receive an e-mail to confirm the account is open and log in details for you set up your dashboard.

If that information hasn't arrived it may be that the e-mail address that we hold for you has an error.

Trying to piece this together for you, linking PH user names and real names isn't all ways easy!! But it looks like you set up a contribution 20/09 that arrived in your portfolio on the 21/09

Please drop me a mail at [e-mail] and I will make sure we get your dashboard log on details across to you.

Regards

Nik