InvestmentsISAs, Unit Trusts, OEICs, Investment Bonds and more

Often the first product that is utalised for a client is an ISA, (Individual Savings Account). Other investment products such as Unit Trusts, OEICs, (Open Ended Investment Companies) and Investment Bonds have their place as well. They have varying tax efficiencies and some can be used for specific purposes such as Inheritance Tax Planning or School Fees payments.

The Government has encouraged private sector investment and savings for some years, but there are limits on the most tax efficient first line products, ISAs.

ISA allowance change
From 6 October 2009 the ISA limit will increase to £10200 for those people aged 50 or over.

ISA limits effective April 2010
From 6 April 2010 the ISA limit will increase to £10200, up to £5100 of which can be saved in cash for all ISA investors. The Government has indicated that ISAs are intended to be part of the long term future for savers, so it is a good idea to maximise the current available allowances, subject to funds being available of course.

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. Unfortunately the additional tax advantage of repayment of the tax paid on dividends, that the fund managers of ISA based funds were previously eligible to, is no longer available due to the removal of this tax break by the chancellor.

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 responsible for the investment fund

 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 the upside is not too inhibited in the fair weather markets
  • Monitor and maintain the performance and charges of the funds you are already invested in.
  • Are remunerated via fees, commission or, a combination of both.

 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        
Rensburg UK Mid Cap Growth Trust One of the best funds 30.0% 14.3% 92.2%
CF Canada Life UK Smaller Cos. One of the worst funds -23.3% -44.2% -35.9%
         
US        
Neptune US Opportunities One of the best funds 11.9% 31.9% 82.0%
AEGON American Equity One of the worst funds -14.8% -17.0% -11.0%
         
Asia, (Excluding Japan)        
 First State Greater China Growth One of the best funds 15.8% 82.7% 186.4%
Aberdeen Orient One of the worst funds 9.8% 28.3% 77.9%
         
Money Markets        
GLG Cash One of the best funds 2.7% 14.5% 25.2%
Threadneedle UK Money Securities One of the worst funds -22.3% -22.7% -17.2%
         
Protected Funds        
Scottish Widows Safety Plus One of the best funds 2.1% 3.1% 27.4%
Close World Escalator One of the worst funds -6.4% -6.0% 14.1%
         
Property        
CF Canada Life UK Property Jersey One of the best funds -14.7% -13.6% n/a
Aberdeen Property Share One of the worst funds -31.6% -57.6% n/a

Data source: trustnet, August 2009.

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 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.

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.