Your questions answered Vol 2 - IM Private Clients

[Intelligent Money]

This is basically what it says on the tin. This thread is where we can carry on as before from the last thread with the usual comments, feedback and banter.

We now have four new threads that are designed for all PHers (clients or not) to search for quick answers on different points or simply ask a question where any previous answer is now buried thousands of pages down in the original thread.

• Individual Saving Accounts (ISAs)
• Pensions & SIPPs
• Tax (including IHT) Planning
• General financial guidance

As this is PH it seems only fair to mention (for those who do not know) our motoring links. As well as sponsoring PH, we are also the title sponsors of the Intelligent Money British GT Championship, brought Jenson Button back from LA to race in the the Silverstone 500 finale with his best buddy Chris Buncombe, partnered with Redline Magazine and Pure GT and very importantly have our own racing team (Intelligent Money Racing).

PHers can remove our initial charge and minimum investment requirement by inserting the code PH2607 in the ‘Promo Code’ box when setting an account up online.

Regulatory Disclosure:

Intelligent Money (IM) was established in 2002 and is Authorised and Regulated by the Financial Conduct Authority (Ref 219473)

The value of investments and any income from them can fall as well as rise. Past performance is not a guide to future returns.

• JulianPH is the CEO of Intelligent Money
• Nik (who posts under Intelligent Money) runs Private Clients ([e-mail])
• CoopsIM is a Private Client Relationship Manager who works closely with Nik ([e-mail])

Intelligent Money

[Intelligent Money]

forest172 said:

so for this tax year I take it I can open an IM money account and lump £20k cash in it and buy funds even though I have my current ISA and SIPP with vanguard?

Can I then in due course switch my current ISA in full or part into my IM account?

ok just tried to do it, and the declaration states 20/21 tax year and that I will subscribe to further tax years. So obviously the years wrong, and will I have said I`d do that with vanguard in their declaration regarding future tax years?

Edited by forest172 on Tuesday 6th April 18:10

Hi forest172

You can hold a stocks and shares ISA and a Cash ISA with more than one provider but you can only add new funds i.e. contribute to one S&S ISA and one cash ISA in a Tax year.

So if you have not paid into a ISA since Tuesday you can set an ISA up with IM.
Funds that already held in an ISA can be transferred between ISA’s and don’t count as a new contribution.

You can contribute to as many Pensions and or SIPPS as you want to.

Cheers

Nik

[Intelligent Money]

mikeiow said:

Pretty sure I know exactly what S6PNJ means, & I firmly agree!

Login, & I am in my ISA account (by default).
Change to my GIA.
Make a change (eg, move some PHR cash back to PHE).
Screen takes me back to the ISA account, instead of staying in the GIA one I *was* in.

Perhaps more noticeable when you also have a Pension Fund account. Aways "returns to home", which isn't the logical thing to do: it should return to the account you were in.


My separate & totally unrelated question is this: I now have a few £k as cash in my GIA (from PHR cash-in).
I'd like to move that cash portion entirely to the ISA fund.
I expect it to go in as cash, & I can later chose which fund to put it in. Or it might be nice to be able to say "move to ISA and invest in PHE".
How do I achieve that?
I can manage the cash and make a fund switch or a full withdrawal, but cannot see how to move to another account!

Thanks!

Hi Mike,

There is a large "look and feel" piece of work going on that will make the dashboard more user-friendly in a number of ways. Your query is a good example of what it will fix, you will be able to chose the plan you are making changes to and stay in that account until you decide to leave it. That will fix the return to default account issue. It is a pretty large re-write so will probably be later in the year before we can launch it.
The ability to move funds between accounts is also on the dev desk along with an automated bed and ISA process for the end of the tax year.

Cheers

Nik

[Intelligent Money]

Groat said:

Any word on joint GIA accounts?

Any crypto involvement mooted?

Hi Groat,

We haven't really looked at joint GIA's as they offer little advantage over holding individual GIA's. The flexibility to manage your own investment risk/reward profile and split the investment as you would like and the use of individual CGT allowances all point towards to individual GIA's offering more flexibility.

Was there a particular reason that you are considering a joint GIA?

While Crypto is an interesting investment area at the moment it is not an area that we feel our expertise can add any real value so it is very unlikely we offer a crypto based portfolio,

Cheers

Nik

[Intelligent Money]

SimonTheSailor said:

Any why is there a cash holding ? Why does it not get returned to us so we can re-invest it in something else ?

Hi SimonTheSailor

A portfolio will typically hold some cash to maintain some liquidity to cover fees and will accumulate some cash if the underlying assets make dividend or income payments.

Cheers

Nik

[Intelligent Money]

Phooey said:

Howdy do

If it's not too much to ask.. is there any chance of having performance figures for 01/01/21 to present for Index 60+100, PHE and Optimum GG+Income please.

Cheers

Hi Phooey,

I'll pull the figures for you on Monday and get them across to you. It is way too much to ask but as its you I'll do it anyway!!

Cheers

Nik

[Intelligent Money]

Ali2202 said:

Any word on how the 'Boss' is doing?

Hi Ali2202

Enjoying a step back a little too much for my liking is how the Boss is!!! As you would expect he can't keep his fingers out of the investment decisions and monitoring pie and if anything is enjoying more time with his head in that part of the business.

Without wanting to speak too much on his behalf, from where I sit he is getting the work/life balance in a much better position and feeling better for it.

Cheers

Nik

[Intelligent Money]

paulrockliffe said:

Hey Nik,

I keep trying to work out the *correct* way to track the funds in the personal finance app that I'm building in my spare time. I think what's needed to track properly (or well enough anyway) is a table of daily fund values as is the fund was opened with £1 in it, with no money ever going in or out. Then each deposit and transfer is tracked over time and the aggregated to fund level and then portfolio level.

That will let you separate the fund values into capital and ROI and account for the timing of investments in a way that simply knowing how the fund has done doesn't.

At the moment I can grab the .csv files for each fund's value over time, recreate the transaction list to account for transfers in/out and between funds and mix it all together to get that picture, but it's quite complex!

I think I can work that out from the csv download of fund value, but can we have .csv download for the transactions too so I can automate the process a bit further? And a single .csv download that includes all the funds unaggregated would be a step forward too.

If your IT team fancy setting up an API that reports that £1 value for all the funds each day that would make things much much simpler though.....

And, last question, if I move everything out of a fund, does the fund disappear from the X-Ray? If so, can you change that so that the history is still available? And is there a limit on the .csv history, or can I go as far back as I had money in the fund?

Cheers!

Hi Paulrockliffe

We should have a view of the performance of all the portfolios an a £1 invested basis available on the dashboard in the next quarter. This will show the performance of each portfolio wether you are invested or not and irrespective of transfers in and out so essentially the underlying the performance of each portfolio.

I will pass the csv queries into the tech team and let you know what we can do.

Cheers

Nik

[Intelligent Money]

uk66fastback said:

Intelligent Money said:

Phooey said:

Howdy do

If it's not too much to ask.. is there any chance of having performance figures for 01/01/21 to present for Index 60+100, PHE and Optimum GG+Income please.

Cheers

Hi Phooey,

I'll pull the figures for you on Monday and get them across to you. It is way too much to ask but as its you I'll do it anyway!!

Cheers

Nik

Can they be shared on here please?

Hi gents, (in Phooeys case meant in the loosest possible terms)

Returns from 01/01/21 to 30/04/21

Index 60 3.57%
Index 100 8.84%
OGG 6.74%

Cheers

Nik

[Intelligent Money]

2Btoo said:

Phooey said:

Do you have the returns from PHE too?

I'd be keen to see these too.

Thanks!

Hi Both,

PHE 6.19% from 01/01/21 - 30/04/21

Cheers

Nik

[Intelligent Money]

Mabbs9 said:

Ron-ski said:

JPH glad to hear you're doing well.

Both PHR and PHE well down this morning, as is the FTSE 100, what's spooked the markets this morning?

I think it's inflation concerns.

Keep on the mend Julian. Good to hear things are going the right way for you.

Atvb

It does look to be inflationary concerns in the US, It caused a bit of a tech stock sell off that has impacted on markets. The US Consumer Price Index numbers are due and markets are also reacting ahead of the number.

Cheers

Nik

[Intelligent Money]

Tony Angelino said:

Forgive the basic question here, if there are inflation concerns why would this make people want to take their cash out of the markets when that cash will be worth less today than it will be tomorow if the inflation they are worried about actually occurs?

I am very new to this but keen to understand some basic principles.

Hi Tony Angelino,

Broadley speaking the view is that governments don't like too much inflation so will take measures to keep it under control. In its simplest format they will take measures to slow down our spending, typically by increasing interest rates.
Reduced spending can mean less goods sold so a perceived reduction in consumer company values, increased interest rates can also make cash or debt vehicles a more attractive investment option.

There are a number of other factors that play around the edges but the above is part of the central principle.

Cheers

Nik

[Intelligent Money]

maccboy said:

I want to transfer an ISA to IM and its full term date is the beginning of June. I've logged in to IM and set up the transfer, entering the other bank's details, but I only want the transfer to happen at maturity, not now. How do I let IM know this, or will they (or the other bank) contact me to ask the question?

Hi Maccboy,

If you wait until about 2 weeks before maturity and then add the transfer to your ISA account we will then start the transfer process from the current provider for you.

Cheers

Nik

[Intelligent Money]

2Btoo said:

Intelligent Money said:

Hi Both,

PHE 6.19% from 01/01/21 - 30/04/21

Cheers

Nik

Are these figures taking into account he pound - dollar exchange rate? I think that when currency differences are taken into account then PHE shows a small drop in this period.

Hi 2Btoo

I had a query on this earlier in the week and unfortunately the numbers that I received from the Investment Team hadn't taken into account dollar/Sterling position for the April returns which did push the YTD numbers out.

With the April numbers converted correctly PHE is -0.52% from 01/01/21 to 30/04/21

Apologies for the error

Nik

[Intelligent Money]

dingg said:

leef44 said:

The net effect, investment houses start selling off so PHE takes a hit.

The USA is at an all time high

What sell off?

Hi Ding,

The tech sector took a hit early this week on the back on inflationary fears in the US but then the markets came back towards the end of the week on the back of good labour market data so it is almost as you were in the US at the end of the week.

Cheers


Nik

[Intelligent Money]

Hussein-z3ksd said:

Hi all,

Just trying to figure out some of the different IM options available to us.

IM OGG;
These portfolios will always remain at a fixed risk/reward level, as selected by you and based upon your requirements. You can change portfolios at any time and at no cost.

This portfolio aims to provide outright growth in excess of global markets under different market conditions by investing primarily in a balanced mixture of of global Equities together with a smaller exposure to Gilts, Fixed Interest Bonds and other assets (Property and Gold) to reduce volatility

1yr 3yr 5yr 10yr 10yr (annualised)
25.92% 22.76% 62.23% 128.38% 8.61%

IM Index 100;
These are purely passive portfolios that track global equities whilst also offering UK Index Linked Gilts as a counterbalance.

This portfolio aims to provide long term investment returns by tracking 100% global stock markets at their natural market capitalisation.

1yr 3yr 5yr
30.52% 58.17% 105.21%

My question, any possibly naive, if OGG is to provide growth in excess of the markets, and Index 100 is to passively track equities, wouldnt it be expected that OGG would outperform Index 100? The data shows otherwise. Im probably missing something obvious or have misunderstood something.

Hi Hussein

The optimum portfolios are typically overweight in the UK and Europe while Index tracks the world wide markets in proportion to their size.
Optimum also has the human intervention of the investment committee and that will typically smooth out the peaks and troughs of the market cycle.
So you will typically see more volatility from the Index portfolios but while markets are bullish the peaks are likely to outweigh the troughs and the overall performance may be better than the less volatile Optimum approach,

Regards

Nik

[Intelligent Money]

PorkInsider said:

Hi Nik/Coops

Is there any way to get hold of a report via the private clients portal detailing contributions to my IM SIPP last tax year (so that I can claim the tax rebate) or do I need to ask for that via email?

Thanks.

Hi Porkinsider

We have just added a contributions section to the dashboard so if you log in and scroll down you will see a summary of your contributions.

We have also added a "what new tab" at the top of your dashboard and we will use this update about updates that we make to the dashboard.

Cheers

Nik

[Intelligent Money]

Phooey said:

Could we please know what Index Sustainable is? What it holds, risk etc etc. Cheers

Hi Phooey,

We will send out the details early next week.

Cheers

Nik

[Intelligent Money]

Mr Whippy said:

I thought they were ring-fenced full stop.

The FSCS limit is so you can get a certain amount back quick via compensation isn’t it?

Let’s say you had £185,000 in PHE.

IM fails.

FSCS give you £85,000.

Then you go chasing back for your £100,000 in Unilever and Colgate etc, which are shares held in your name somewhere.

Hi all,

Protection with IM is as follows:

Your money is held in your own individual accounts so is always your money not ours, If we go bump your money doesn't bump with us.

We use a custodian to administer the funds so the administration of the funds should be relatively simple even if we are gone

Your funds will always have a value as long as the underlying assets have a value. For Optimum and Index this is linked to the likes of the FTSE and Dow Jones, for PH Equity it is the share value of the companies i.e. Nike, Netflix, Apple etc.

As we are FCA authorised and regulated the FSCS £85k protection also applies but is unlikely to be called on given the above.

The FSCS is usually applied if the company has gone bump and taken the funds with it or your were advised to invest in a fund that you were told matched your risk profile, but it turns out that it didn't and the underlying investment has gone bump.

Hope that helps

Cheers

Nik

[Intelligent Money]

CharlesdeGaulle said:

anonymous said:

[redacted]

I know they won't, hence the question to my fellow punters.

Good reminder about Sus though, thanks. Will take a look at what's in that.

Hi All

As you say we don't advise or recommed which portfolio you should use but we can offer guidance and information. We are more than happy to share our thoughts on the markets and chat through how the different portfolios work. The main difference is that the decision is ultimately yours but we are happy to make sure you have the information and understanding you need to make that decision.

Just drop me a mail, [e-mail]

Cheers

Nik