Your questions answered Vol 2 - IM Private Clients
Discussion
Phooey said:
Dear IM,
Is it possible to have performance figures (after fees) to 30th Sept 2021* for below IM portfolios please?
Index 60
Index 100
Optimum Growth
Optimum Income
PHE
PHR
Hi PhooeyIs it possible to have performance figures (after fees) to 30th Sept 2021* for below IM portfolios please?
Index 60
Index 100
Optimum Growth
Optimum Income
PHE
PHR
- I imagine 30th Sept (end 3rd qtr) would be the easiest to calculate too.. but even better if you can provide them to as recent as poss
You have mail
Nik
Mr Whippy said:
Can I just clarify something?
The plots in the IM dashboard go up/down based on share/bond prices and also income (dividends?), and then also correct on a daily basis for the annual fee.
So what you see is literally what you get?
A flat line over 1yr in a dividend stock would actually be losing share price, and the dividend would be sufficient to create a rising invested value, sans the annual fee?
I’m just recalling the tracking of share prices people were doing with PHR, to correlate roughly with the IM dashboard view... but surely with dividends it goes out of the window?
Does IM invest dividend income in more units of the investment that yielded them?
Hi Mr Whippy, The plots in the IM dashboard go up/down based on share/bond prices and also income (dividends?), and then also correct on a daily basis for the annual fee.
So what you see is literally what you get?
A flat line over 1yr in a dividend stock would actually be losing share price, and the dividend would be sufficient to create a rising invested value, sans the annual fee?
I’m just recalling the tracking of share prices people were doing with PHR, to correlate roughly with the IM dashboard view... but surely with dividends it goes out of the window?
Does IM invest dividend income in more units of the investment that yielded them?
At a portfolio level what you see is what you get. So the valuation feeds are exactly as you understand them, the value you see is your money.
It varies slightly depending on the portfolio holdings, but dividends will typically be paid in and then held as cash within the portfolio. They are then redistributed into asset holdings when the portfolio is rebalanced to prevent the cash balance becoming overweight.
This would mean that at a portfolio level the overall change in value may vary compared to tracking the individual share prices, as the portfolio holds cash and will hold additional cash after dividend payments, while tracking just the shares wouldn't take this into account.
Cheers
Nik
Simpo Two said:
Intelligent Money said:
It varies slightly depending on the portfolio holdings, but dividends will typically be paid in and then held as cash within the portfolio. They are then redistributed into asset holdings when the portfolio is rebalanced to prevent the cash balance becoming overweight.
Which I think is every six months?I'd prefer a portfolio not to have a 'sump' of spare cash lying around doing nothing, but reinvested from whence it came.
We re-balance quarterly and if cash balances get too high we will move funds ahead of a rebalance.
Nik
tighnamara said:
Liking the new layout on IM account, thumbs up from me.
Thank you tighnamra, It has been in the pipeline for a while and forms the base for some additional updates that we have been working on.
For anyone who hasn't spotted it there is a "what's new" tab on the top right of home page that gives you an overview of changes that have been made when we update the dashboard.
Cheers
Nik
Captain Raymond Holt said:
I like how you can keep refreshing the page to get a different colour donut, pink… burnt orange… poo brown. The choices are endless! 
On a slightly more serious note… I have set up a JISA on IM for my wee one, currently £0. Can I transfer from my ISA into that or do I need to withdraw and then deposit?
No real idea how JISAs work, not my field.
Cheers!
Hi CaptainOn a slightly more serious note… I have set up a JISA on IM for my wee one, currently £0. Can I transfer from my ISA into that or do I need to withdraw and then deposit?
No real idea how JISAs work, not my field.
Cheers!
We can set up an internal transfer for you but its would be a manual process. You would need to switch the amount that you want to contribute into cash within your ISA. You then set up a contribution as a bank transfer within the JISA. Drop an e-mail to steve.cooper@intelligentmoney.com after it is set up and we will move the funds over for you.
A JISA offers the same investment options as an ISA, the contribution limit is £9,000 p.a. The account is held with a parent or legal guardian as the trustee until the child reaches 16. At 16 the child can make investment instructions. The funds cannot be withdrawn until the child is 18.
Cheers
Nik
PM3 said:
Elementary Q of the year regarding IM GIA : Within the IM GIA , is a swap from one product to another inside a tax year considered as a taxable event ? No cash withdrawn , just a switch between a fund ( say for example OGG ) which has increased in value since initial investment , to another holding ( say for example PHE ) for the purposes of CGT
I am largely a tax dumb-a55 so genuinely don't know. I'm not sure if such even is crystallizing the amount involved. tbh , I suppose the answer is yes.
Hi PM3I am largely a tax dumb-a55 so genuinely don't know. I'm not sure if such even is crystallizing the amount involved. tbh , I suppose the answer is yes.
Edited by PM3 on Saturday 6th November 15:41
Any "disposal" i.e. sale of a portfolio within the GIA creates a CGT assessable event.
Any CGT is assessed and due for payment via self assessment at the end of the tax year. Any losses made in the year are offset against gains and your annually CGT allowance is taken into account.
Cheers
Nik
jimmybell said:
you stated "we list sector weightings" - i guess back to my original question that was "where is this information?" to both the 'constituents of active managed portfolios' and the 'sector weightings' - as i was struggling to find it in any of the documentation or client portal, and i was requesting assistance here. Unless you are referring to the pie charts in the client login portal (but given they have no legend with figures they're just decorative so i assume not)? I was trying to look it up rather than bothering you guys to post it here.
Hi jimmybell
In the X Ray section of the client site if you hover your mouse over the sectors in the donut chart it shows the % held in that sector.
Regards
Nik
PM3 said:
Nik, quick question on the sector weightings . In the Index100 there is no allocation indicated for UK equities . Is that the actual case ( zero or are they simply rolled into the european , or other.
Reason I say apart from my fascination( fixation ?) with geographic spread , my OGG shows european, other and obviously UK ( in a big chunk )
Hi PM3 Reason I say apart from my fascination( fixation ?) with geographic spread , my OGG shows european, other and obviously UK ( in a big chunk )
Edited by PM3 on Tuesday 30th November 11:09
The UK element is rolled into Other but is typically 4-6% dependent on the market size at the point of rebalance.
Cheers
Nik
Phooey said:
Burwood said:
I would think it holds zero stocks 
. It's literally a fund of indices or an index which mirrors the weighting of global markets. US being 65%ish and so on.
Edited to add, an index tracker contains the underlying stocks of course but a tracker will trade under its own ISIN
Mmmm, ok. I just thought it might be something similar to VWRL for example. VWRL holds 3752 stocks whereas FTSE Global All Cap Index Fund (Vanguard, cough) holds 7149. . It's literally a fund of indices or an index which mirrors the weighting of global markets. US being 65%ish and so on.Edited to add, an index tracker contains the underlying stocks of course but a tracker will trade under its own ISIN
Edited by Burwood on Saturday 11th December 18:41
Just thinking where to invest next year.. wanting an easier life - will choose a fire and forget all in one fund innit
The Index portfolios use ETF's and Index Trackers to represent the world wide markets by market capitalisation.
While we don't hold individual stocks, by tracking the likes of the FTSE, Dow Jones and Nikkie Dow, it tracks the performance of around 9,000 underlying stocks.
Cheers
Nik
tight fart said:
I am at an age where funds can be taken, the pension has about 15% left uncrystalised, I was just wondering if there was a reason against moving that tax free part to an ISA in the same fund.
IE. will PHE perform the same, tax free in an ISA.
Hi Tight Fart, IE. will PHE perform the same, tax free in an ISA.
I think most considerations have been covered on this question by others. The only additional consideration, if you were going to use the tax free cash element, is that withdrawing the tax free cash now "crystallises" the amount of tax free cash.
i.e. remaining un-crystalised fund of £80k. if you take the tax free cash now you can take 25% so £20k. Your pot is now fully crystallised so any further withdraws will be taxed as income.
If you leave the funds in the pot and it grows to £100k and you then take the tax free cash you can now take £25k tax free.
of course if the fund drops you will have less tax free cash available!
Cheers
Nik
Mr Pointy said:
Converse2020 said:
Can I ask about a GIA account. I’ve got a modest amount of cash beyond what I can move in to my, or my wife’s ISA for this or next tax year.
I could (and might) put this excess money into my pension to offset current tax year taxable earnings but should I consider a GIA?
And if so is it worth considering putting it in my wife’s name (as she is a std rate tax)
If you don't need access to the funds then making a pension contribution is the most efficient means of investing them. If you don't want them locked away then a GIA will enable you to invest in funds that will (hopefully) increase in value rather than lose value in a bank account. You each have a CGT allowance of £12,300 per tax year so with a bit of careful management around March you should be able to realise those gains each year free of tax.I could (and might) put this excess money into my pension to offset current tax year taxable earnings but should I consider a GIA?
And if so is it worth considering putting it in my wife’s name (as she is a std rate tax)
Of course investment values can fall as well as plummet.
Mr Pointy is spot on with his reply. The only additional consideration is later access to the funds. In a pension you will have access to 25% tax free the additional will be taxed as income. Within a GIA any withdrawal will be assed against capital gains tax. As Mr Pointy has said the first £12,300 of capital gain is tax free.
Cheers
Nik
2Btoo said:
OK, serious question here. Although it may be a slightly ill-formed one.
In IM I can invest in all sorts of things. They are, roughly put, "PH things", "Optimum things" and "Index things".
"PH things" I understand; PH Equity (kinda high-risk and high-reward, does well over a period of time, quite like a concentrated form of Fundsmith and I like Fundsmith VERY MUCH as it's been very kind to me over the last decade) and PH Opportunities (picks up where PH Recovery left off, and PH Recovery is generally considered to have been A Very Good Thing).
"Index things" I also understand; they blend a stock market tracker (which market? FTSE?) with some bonds in differing proportion and run from 'slow-and-steady' to 'even slower and even steadier' as the Index number drops. I've never understood what a bond is but that's by-the-by; I understand what a stock market tracker is and I'm too rash/stupid to ever consider the lower numbered Index funds.
"Optimum things" is where I am confused. What's the difference between "IM Optimum Global Growth" and "IM Optimum Global Growth And Income" (and, for that matter, "IM Optimum Income")? And then we have "IM Optimum Growth for Income Strategy" and "IM Optimum Growth for Withdrawal Strategy". What's the difference between all of these and which one should I choose to put my hard-earned into?
(I am aware that I know very little about investing other than that the figures should go up, and as much as possible. I am also aware that I have been lucky with investments to date - very lucky - and that my luck-to-ignorance ratio must be pretty much off the scale. In the light of this I am wondering whether I could improve my results by reducing my ignorance, hence this question. )
Hi 2BtooIn IM I can invest in all sorts of things. They are, roughly put, "PH things", "Optimum things" and "Index things".
"PH things" I understand; PH Equity (kinda high-risk and high-reward, does well over a period of time, quite like a concentrated form of Fundsmith and I like Fundsmith VERY MUCH as it's been very kind to me over the last decade) and PH Opportunities (picks up where PH Recovery left off, and PH Recovery is generally considered to have been A Very Good Thing).
"Index things" I also understand; they blend a stock market tracker (which market? FTSE?) with some bonds in differing proportion and run from 'slow-and-steady' to 'even slower and even steadier' as the Index number drops. I've never understood what a bond is but that's by-the-by; I understand what a stock market tracker is and I'm too rash/stupid to ever consider the lower numbered Index funds.
"Optimum things" is where I am confused. What's the difference between "IM Optimum Global Growth" and "IM Optimum Global Growth And Income" (and, for that matter, "IM Optimum Income")? And then we have "IM Optimum Growth for Income Strategy" and "IM Optimum Growth for Withdrawal Strategy". What's the difference between all of these and which one should I choose to put my hard-earned into?
(I am aware that I know very little about investing other than that the figures should go up, and as much as possible. I am also aware that I have been lucky with investments to date - very lucky - and that my luck-to-ignorance ratio must be pretty much off the scale. In the light of this I am wondering whether I could improve my results by reducing my ignorance, hence this question.
) Index things
These track the world wide market based on market capitalisation so each world market is represented in the promotion that it makes up of the world equity market, It tracks the likes of the Dow Jones, FTSE etc. There is no human intervention in the make up of the portfolio, the proportions are dictated by the markets. The client also dictates the equity exposure by selection Index 100, Index 80, Index 60, Index 40 or Index 20.
Optimum Things
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.
Based on the portfolio you chose our investment team will decide how much of the portfolio should be in equities and what geographical spread is appropriate. The non-equity element will be split across a number of areas tracking the value of gold, property, cash, GILTS e.t.c.
Optimum Global Growth typically has more equity exposure around 80/85% while Optimum Defensive has far less Equity exposure 15/20%
These are formally reviewed quarterly but can be altered more frequently if market conditions require it.
These portfolios are all clearly names to reflect these investment objectives and the level of risk/reward decreases with each one from IM Optimum Global Growth, IM Optimum Global Growth & Income, IM Optimum Income, IM Optimum Cautious to IM Optimum Defensive.
You can find out more about these portfolios, where they are invested and their past performance on the Intelligent Money Private Client site.
The Two Optimum Strategy portfolios are "Target Dated Portfolios" This means that if you set a time period for the investment then the Investment Committee manage the make up of your portfolio given the period that you intend to invest for. The Optimum Portfolios are used to build a strategy that reduces the risk/reward ratio of the portfolio as you get closer to the withdrawal date.
Hope this helps
Cheers
Nik
Converse2020 said:
Intelligent Money said:
Mr Pointy said:
Converse2020 said:
Can I ask about a GIA account. I’ve got a modest amount of cash beyond what I can move in to my, or my wife’s ISA for this or next tax year.
I could (and might) put this excess money into my pension to offset current tax year taxable earnings but should I consider a GIA?
And if so is it worth considering putting it in my wife’s name (as she is a std rate tax)
If you don't need access to the funds then making a pension contribution is the most efficient means of investing them. If you don't want them locked away then a GIA will enable you to invest in funds that will (hopefully) increase in value rather than lose value in a bank account. You each have a CGT allowance of £12,300 per tax year so with a bit of careful management around March you should be able to realise those gains each year free of tax.I could (and might) put this excess money into my pension to offset current tax year taxable earnings but should I consider a GIA?
And if so is it worth considering putting it in my wife’s name (as she is a std rate tax)
Of course investment values can fall as well as plummet.
Mr Pointy is spot on with his reply. The only additional consideration is later access to the funds. In a pension you will have access to 25% tax free the additional will be taxed as income. Within a GIA any withdrawal will be assed against capital gains tax. As Mr Pointy has said the first £12,300 of capital gain is tax free.
Cheers
Nik
How does the use of CGT allowance work ? Eg if I put £x into GIA how do I determine earnings each tax year if it just stays invested?
Money held in a GIA is subject to a capital gains assessment when you en-cash a holding. You get a capital gains tax allowance of £12,300 p.a. which is "use or lose" so in some instances it is worth moving a holding to trigger a gain and make use of the allowance.
You don't need to withdraw the funds just move them from one portfolio to another or into cash. You then need to wait 30 days before moving back to the original position.
If you are looking to use the GIA to fund future ISA contributions you can "Bed and ISA" which effectively means that you trigger a capital gain by switching funds from your GIA into your ISA. You can do this and still hold the funds in the same portfolio without the 30 day wait when moving from a GIA to a ISA. Given that the ISA limit is £20k it is unlikely that you will use all of the £12,300 of allowance so will have no tax to pay, assuming you haven't used your CGT allowance elsewhere.
The GIA provider can provide you with the gains calculations so you know how much to en-cash to make use of your allowance and not exceed it.
Hope that helps! If it would help I'm happy to run through your situation for you so you can see how it may work for you. Just drop me a mail at nik.burrows@intelligentmoney.com
Cheers
Nik
C2Red said:
JeremyH5 said:
C2Red said:
When a cash deposit is made to a recently opened ISA, with predefined options as to where the sum of cash should be presented, I.e. 20% optimum cautious etc, how long does it take to show in each holding.
TIA.
My daughter set up a new JISA for her daughter and sent funds on Tuesday. All showing by yesterday, so overnight in her case.TIA.
The funds will of been allocated to the portfolios on the same day but the actual transaction can take 2-3 working days, dependent on the underlying assets.
Cheers
Nik
Mr Whippy said:
Probably asked a million times, but quick question.
I have a cash ISA with Skipton Building Society. On a book.
Do I go to my IM ISA, do a transfer, and just fill in 'other' and then the usual details of the opening branch, then sit back and let it roll?
Many thanks
Dave
Hi DaveI have a cash ISA with Skipton Building Society. On a book.
Do I go to my IM ISA, do a transfer, and just fill in 'other' and then the usual details of the opening branch, then sit back and let it roll?
Many thanks
Dave
That is the way to do it,
After the transfer is applied to you account we will probably need to create a "paper discharge form" for you that we will e-mail across for a signature. We can then take it from there.
Cheers
Nik
Mavman39 said:
I'm looking to invest pension pot 450k in a fund for 4&5 years ,low risk but looking for a return of 3% and slightly higher ,any recommendations on your funds would be much appreciated.
Hi Mavman39The lower risk/lower volatility IM Portfolios are IM Optimum Cautious and IM Optimum Defensive. They aim to provide better than cash deposit returns while maintaining a lower risk approach.
All our portfolios have some exposure to stocks and shares so the performance is not guaranteed and the value can rise and fall and your initial investment can fall.
I'm happy to set a call up, no cost and no obligation, to chat through what you may want to consider and answer any questions that you may have. Just drop me an e-mail at nik.burrows@intelligentmoney.com
Cheers
Nik
SimonTheSailor said:
Just transferred some cash I to IM - unclear whether it's actually there yet or how to move it into something ?
Not exactly very clear ?
Also sent an email a day or so ago regarding not being able to open a file downloaded but no response yet.
Hi Simon, Not exactly very clear ?
Also sent an email a day or so ago regarding not being able to open a file downloaded but no response yet.
My apologies that you haven't had a reply to your e-mail, I've not seen a e-mail from you on our system, please drop me a message at nik.burrows@intelligentmoney.com and I'll be happy to help.
Cheers
Nik
Phooey said:
Question for IM..
I want to sell in full my PHO holding in each portfolio (x5). I was about to initiate the switch this morning (before 9am) from PHO to Index100 but just wondered if it would of completed before the 'rebalancing' which is due to complete on 8th Feb? I've obviously now missed today's window so my next chance is tomorrow morning (26th Jan). How long will it take to complete if actioned tomorrow morn (26th, before 9am)? Cheers
Hi PhooeyI want to sell in full my PHO holding in each portfolio (x5). I was about to initiate the switch this morning (before 9am) from PHO to Index100 but just wondered if it would of completed before the 'rebalancing' which is due to complete on 8th Feb? I've obviously now missed today's window so my next chance is tomorrow morning (26th Jan). How long will it take to complete if actioned tomorrow morn (26th, before 9am)? Cheers
Yes we will get that all done before the re-balance
Cheers
Nik
Tony Angelino said:
renmure said:
A quick admin type question from me re PHE and the above and not being nit-picking.
I know that Unilever is out and something else (can't remember what off the top of my head) is in and obviously I'm happy that someone who knows what they are doing is making these calls. However, I believe I only know that because I'm sad and on a car forum following the IM chat and banter.
Mrs Renmure, who isn't sad (apparently) and is on a cycling forum (seriously!!) without any IM chat and banter (boring) but is as invested in all things IM as me doesn't know this and scolded me for being a smart ass for mentioning it when we were discussing Unilever over dinner this evening (it's how we rock at renmure towers, tables are available, booking isn't always necessary)
Anyhow, I guess my question is should she have known? Was there an email that I / she / we / have missed? Is a change like that in a buy-and-hold portfolio something that gets announced more generally outwith the PH Forums or not?
I think this is a good point, I am in pretty much the same situation and agree. We get the odd email update on various issues, should we get one for things like this too? I know that Unilever is out and something else (can't remember what off the top of my head) is in and obviously I'm happy that someone who knows what they are doing is making these calls. However, I believe I only know that because I'm sad and on a car forum following the IM chat and banter.
Mrs Renmure, who isn't sad (apparently) and is on a cycling forum (seriously!!) without any IM chat and banter (boring) but is as invested in all things IM as me doesn't know this and scolded me for being a smart ass for mentioning it when we were discussing Unilever over dinner this evening (it's how we rock at renmure towers, tables are available, booking isn't always necessary)
Anyhow, I guess my question is should she have known? Was there an email that I / she / we / have missed? Is a change like that in a buy-and-hold portfolio something that gets announced more generally outwith the PH Forums or not?
thanks all.
The simple answer is yes you should. If a change is made to one of the PH portfolios then an e-mail should go to all holders of that portfolio to inform them of the change.
My apologies that that this hasn't happened this time. I will find out what the issue has been and we will put it right.
Regards
Nik
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