Stocks and Shares ISAs, Unit Trusts, OEICs, Investment Bonds, Structured Products and more
We are often asked, “what is the best way of investing my money?”. Often the first product that is utilised for a client’s wealth management programme is a Cash or Stocks and Shares Individual Savings Account, (ISA). Other investment products such as Unit Trusts, Open Ended Investment Companies, Investment Bonds, and Structured Products have their place as well. They have varying tax efficiencies and some are often used for specific purposes such as Income in Retirement, Inheritance Tax Planning or School Fees payments to name a few.
The Government has encouraged private sector investment and savings for some years, but there are limits on the tax free products. However, one of the best longer term forms of investment are ISAs.
ISA allowance change
From 06 April 2011 and over the course of the next Parliament, the ISA limits will be increased in line with the Retail Prices Index (RPI) on an annual basis. The limit from April 2011 is £10,680. Tax on deposit savings could be 10%, 20%, 40% or 50%, depending in your income level so this is a fantastic opportunity for anyone paying income tax, especially for a Higher Rate or Additional Rate tax payers.
The tax efficiencies available via ISAs are that all the capital growth and any dividend based income within the plan are tax free. However, once the funds are removed from an ISA wrapper it is not possible to re-invest within the same plan at a later date.
With all investments it is a common misconception to rely on the tax efficiencies within the product to boost the performance of the funds. It is of paramount importance to make sure that the funds within the portfolio are of high quality. Major considerations are:
- Charges
- Quality and continuity of past performance
- Experience and track record of the fund managers we choose for your portfolio
At Templegate we:
- Identify for you funds with a solid and consistent performance
- Balance your portfolio in such a way that the downside is minimised in the poor markets, while making the most of the upside when the markets are buoyant.
- Invest for Growth, Income or both.
- Monitor and maintain the performance and competitive charges of your portfolio.
- Simple and easy to understand charges for advice.
Here is an example of the huge differences in performance that can be generated from funds. Templegate uses sophisticated research software to thoroughly research the funds we recommend to clients thereby picking the best funds based on past performance, likelihood of future performance above the sector average and, low volatility. All three factors are important when considering fund selection.
| Sectors and Funds | 1 Year Growth |
3 Year Growth |
5 Year Growth |
|
| UK EQUITY | ||||
| Aberdeen Multi Manager UK Growth Portfolio Acc | One of the best funds | -5.8% | 38.2% | -9.3% |
| Franklin Templeton Templeton UK Equity A Acc | One of the worst funds | -4.3% | 36.8% | -28.8% |
| US | ||||
| Axa Framlington American Growth Acc | One of the best funds | 11.7% | 62.8% | 36.7% |
| M&G North American Value A Acc | One of the worst funds | -3.0% | 54.3% | -13.6% |
| Asia, (Excluding Japan) | ||||
| First State Asia Pacific Leaders A Acc | One of the best funds | -1.6% | 83.3% | 98.8% |
| Melchoir Asian Opportunities A | One of the worst funds | -16.4% | 92.4% | 7.8% |
| Money Markets | ||||
| Fidelity Moneybuilder Cash | One of the best funds | 0.3% | 2.0% | 13.1% |
| F&C Money Markets 1 | One of the worst funds | -0.5% | -0.1% | -6.0% |
| Protected Funds | ||||
| Scottish Widows Safety Plus A | One of the best funds | -1.1% | 9.9% | 6.4% |
| Close European Escalator | One of the worst funds | -4.6% | -4.4% | 12.8% |
| Property | ||||
| Royal London Property Acc | One of the best funds | 6.7% | 5.6% | 3.0% |
| SWIP UK Real Estate | One of the worst funds | -6.7% | -1.5% | -58.8% |
Data source: trustnet, Unit Trust and OEIC funds, October 2011
We keep our ears to the ground so that should events happen which would affect the future performance of your fund, we would know about it.
In the vast majority of cases we are remunerated for future reviews via the annual management charge levied by the fund providers, so it comes at no extra cost to you, the client.
So give us a call for an unbiased evaluation of your portfolio and we will: -
- Balance your asset allocation
- Ensure your diversification and risk levels for your investments are in line with your expectations.
So what next? The only thing left for you to do is pick up the phone and call Templegate on 01264 300125, 0845 833 8837 or, email info@templegatefinancial.co.uk or, complete our enquiry form.
The initial consultation is covered by Templegate.
Templegate Financial Planning Ltd is an appointed representative of Sage Financial Services Ltd, which is authorised and regulated by the Financial Services Authority. Sage Financial Services is entered on the FSA register (www.fsa.gov.uk/register) under reference 150452.The FSA do not regulate will writing services or some forms of mortgages and inheritance tax planning. The information and content of this website is intended for UK consumers only and is subject to the UK regulatory regime. Templegate Financial Planning Ltd. Registered Office: Winton House, Winton Square, Basingstoke, Hampshire, RG21 8EN Registered in England No. 04416499.
