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Our investment approach

Is sophisticated, yet simple. We aim to grow your wealth through professional investment management and personal financial planning.

PRIVATE CLIENTS


We provide fully managed and purely passive pensions (with SIPP property functionality), ISAs, General Investment Accounts (GIAs) together with Junior Pensions & JISAs.

You can select from each investment approach, mix and match and switch without charges.

Importantly, we also provide each Private Client with their own, named, Private Client Manager. This gives you unlimited access to a qualified and experienced financial specialist who is on hand to assist you will all aspects of your financial planning (not just your Intelligent Money investments) at a time that suits you.

You will have their direct mobile phone number and email address and they are available over the phone, internet or face to face, all at your discretion

Our annual fees are fully inclusive of every cost and range from 0.57% to 0.87% (depending on your investment selection).

Below we compare this approach with the two main alternatives to running your investments (DIY Platforms and Financial Advice).

DIY Platforms


DIY platforms are very popular with individuals who do not want to pay for financial advice. Essentially you pay the platform provider a fee to access its platform and select your own investments from a list of thousands.

The consequence of this, however, is that you are responsible for selecting an asset allocation model and the underlying investments that map to this, then running the ongoing monitoring and rebalancing of this.

In reality however, most people just select popular funds based upon past performance and do not assess the asset allocation and underlying investments their fund options create, which can lead to poor investment outcomes and taking the wrong level of risk/reward.

The typical costs with the UK’s largest DIY platform provider is 0.45% a year plus fund costs. The fund costs can be very low for purely passive investments or very high for fully managed funds and all of these costs need to be added together to give you the full fee. The headline rate is highly unlikely to be the total charges payable.

Our Private Client service has an all inclusive 0.57 to 0.87% annual fee, so we can usually do everything for you at a significantly lower cost than if you were doing everything yourself.

Financial Advice


Taking financial advice means it is the responsibility of your adviser to assess your financial needs and provide you with a suitable investment portfolio, together with tax efficient planning and insurance considerations (something they remain liable for).

This obviously does add a much larger layer of costs onto those for DIY platform investing, bringing the total combined costs (platform, investment management and advice) up to as much as 5% upfront and 3% every year.

We don’t offer (or charge for) financial advice or have any platform fees, yet can provide you with full financial planning, support, information and guidance (together with all investment management) to help you make the right decisions yourself.

Summary


  • Fully passive investments have the lowest cost and so in rising markets are likely to outperform. You also have to factor in platform costs and, if relevant, advice costs before comparing pricing. We include all costs in our passive IM Index 0.57% annual fees
  • Our IM Optimum managed passive investment portfolios can strike a halfway house between purely passive investing and fully active investing, by focusing on asset allocation rather than stock selection.
  • If you want a portfolio that focuses on stock selection we are about to launch PH Equity (anticipated on the 1st October), a buy and hold portfolio of 10 core globally known stocks at a considerably lower price than the combined costs of other actively managed funds and platform fees
  • DIY platforms charge you for making your own investment decisions and this charge reduces your returns without ever adding to them
  • Financial advice has significant further costs in addition to platform and fund fees and therefore reduces your returns even further
  • Intelligent Money Private Clients also provides you with a named, qualified and experienced professional financial specialist to deal with all of your financial matters without you having to pay any advice fees. Uniquely, this is included in our portfolio fees.