Global Tracker Funds

bowlhead99

jdw2000 wrote: »

So that's just a normal bank account then?

He seemed to think that there should be an investment account alongside my pension and ISA accounts with Aegon, but there isn't one there.

No, not a normal bank account for depositing cash and keeping the money as cash. An investment account that holds investments,just like your ISA or SIPP, just not inside a 'tax wrapper'.

Your ISA is an investment account wrapped up inside an ISA tax wrapper so HMRC can't see inside it and there are never any taxes on the income or gains but you can only contribute £x per year.

Your SIPP is an investment account wrapped up in a pension wrapper, same sort of principle but different set of rules.

You can also have a plain vanilla investment account with no special tax wrapper at all, which is fine because if you only have £20k or so to put in it, instead of £100k or more... you probably won't earn enough dividends to exceed your annual dividend allowance or enough capital gains to exceed you annual capital gains exemption in any one year.

All of these products can (generally) hold the same types of investment funds.

So people will use standard plain normal unwrapped general investment accounts with their platform provider to hold their investments with no special wrapper, and then once they have more space available in their ISA or pension, they will sell the investments to get cash, and contribute the cash to the ISA or pension, and then buy investments inside the ISA or pension (and the investments that they buy inside the ISA might be exactly the same ones as they had been holding outside the ISA for a year or more before).

The goal is to gradually get as much investments inside a tax wrapper as possible, but that doesn't mean you shouldn't hold any investments outside tax wrappers in the meantime.

At present I have just put £15,240 into my Aegon ISA. Come April next year I plan to put another £20K into the ISA. The investment account was to put the money in the meantime. Does it make any difference if those funds are kept in my Santander 123 account in the interim?

If the funds are kept in your Santander 123 account until next April you will earn 1.5% on them for half a year. If the funds are kept in an investment account they will earn investment returns from the investments that you buy in the investment account.

The returns in an investment account can be positive or negative from day to day just like the returns in the ISA. As you intend for the money to eventually go into the ISA and be subject to investment risk and returns instead of cash returns, there is no reason why you couldn't just put it in an investment account right now, and buy some suitable investments that meet your long term goals. When April comes around, sell them in the investment account, withdraw the money from the investment account, put it into an ISA, and buy the funds again in the ISA.

He seemed to think that there should be an investment account alongside my pension and ISA accounts with Aegon, but there isn't one there.

When you filled out the forms to apply to open a pension and an ISA, did you also apply to open a non-ISA non-SIPP account. If not, there won't necessarily be one magically created 'just in case you ever fancied using one'.

But if you want one, open one (with Aegon or with any other investment platform provider).

dunstonh

At present I have just put £15,240 into my Aegon ISA. Come April next year I plan to put another £20K into the ISA. T

I suspect he would use the £15,240 fro the ISA and any surplus in the General Investment account (GIA). Then next year, bed & ISA anything from the GIA that you do not use with new money.

A lot of the full wrap platforms will automatically make a GIA available without the need for further application. Whereas the fund supermarket style platforms treat the GIA as a distinct product and would need a separate application.

jdw2000

I called Aegon up and asked about GIAs last week and they said they didn't have one.

I found this online, where Aegon do mention having a platform for a pension/ISA/GIA. However, it seems to be only aimed at Financial Advisers, and not at customers: https://www.aegon.co.uk/advisers/arc/product-wrappers.html

Is there any reason why a customer can't arrange for a GIA to go with their pension/ISA but a Finance professional can?


I guess the alternative would be to get a GIA through trustnet or another platform provider... Any recommendations? I am looking to put about £20K in there, and Vanguard FTSE All World ETF looks like a good fit.

JohnRo

If you're set on using ETFs then a low cost share dealing platform with a good reputation is what you'd need to look for alongside a low/no cost custody fee.

TDDI are probably the best fit, they offer very low cost dealing for ETF vehicles if the chosen ETF is available via their regular monthly purchase scheme. I know that VWRL is available, as are many other popular ETF selections although it's a mystery how TD decide what's included.

The pit fall with TD at this point in time is they're probably going to be under new management next year and what happens to their pricing structure if that gets approval is anyone's guess.

dunstonh

I found this online, where Aegon do mention having a platform for a pension/ISA/GIA. However, it seems to be only aimed at Financial Advisers, and not at customers: https://www.aegon.co.uk/advisers/arc/product-wrappers.html

It is aimed at clients of IFAs.

Is there any reason why a customer can't arrange for a GIA to go with their pension/ISA but a Finance professional can?

You can. You use providers that focus on the DIY market. Not the advised market.

DrSyn

coastline wrote: »

From the above list of funds I've noticed Orbis Global Equity Standard which is actively managed and is showing well over 1 3 and 5 years.As far as I know its not a fund which gets a mention on here so maybe someone will comment on it ?
I've viewed it on the MSCI World link below and it goes back to 1990 and seems to have a decent track record.
Just thought I'd mention it to get some views from posters..
Select IA Unit Trusts & OEIC's...Orbis...Orbis Global Equity Standard.

https://www.trustnet.com/Tools/Charting.aspx?typeCode=NM990100

There does seem to be something curious about this Orbis fund.

1.For a start I cannot find anywhere that tells me it's OCF.

2.You say it goes back to 1990.

Look at the trustnet PDF below:-

The Fund Information states Launch Date 01-Jan-2014

The Cumulative Performance graph starts at Nov 2013

https://www.trustnet.com/Tools/PDFViewer.aspx?url=%2fFactsheets%2fFundFactsheetPDF.aspx%3ffundCode%3dJYFIF%26univ%3dO%26curr%3dGBP



3.While the trustnet graph below shows a graph going back to Dec 2011

https://www.trustnet.com/Tools/Charting.aspx?typeCode=NM990100

jdw2000

dunstonh wrote: »

It is aimed at clients of IFAs.



You can. You use providers that focus on the DIY market. Not the advised market.

Ok, thanks for clarifying. I was just hoping to keep my pension, ISA and GIA in the same place for simplicity sake. But I'll have to take the GIA elsewhere then.

jdw2000

JohnRo wrote: »

If you're set on using ETFs then a low cost share dealing platform with a good reputation is what you'd need to look for alongside a low/no cost custody fee.

TDDI are probably the best fit, they offer very low cost dealing for ETF vehicles if the chosen ETF is available via their regular monthly purchase scheme. I know that VWRL is available, as are many other popular ETF selections although it's a mystery how TD decide what's included.

The pit fall with TD at this point in time is they're probably going to be under new management next year and what happens to their pricing structure if that gets approval is anyone's guess.

Many thanks for that. I think TDDI look fine for my needs, judging by the comparison page. Much appreciated.

Does anyone have any information about TDDI's possible change and how it might affect investors?

It's annoying as hell when you get a newbie on a forum. I am sorry. : )

JohnRo

Interactive Investor have acquired the TD Direct business pending approval.

http://citywire.co.uk/money/interactive-investor-buys-td-direct-investing/a957253

The problem for existing and potential new TD clients is that, generally, the difference between TD and iii, when it comes to customer service, competence and efficiency, has been the difference between night and day.

I'm expecting the pricing structure to change at some point. Whether TD can retain their top class status longer term with iii running the show is uncertain.

jdw2000

JohnRo wrote: »

Interactive Investor have acquired the TD Direct business pending approval.

http://citywire.co.uk/money/interactive-investor-buys-td-direct-investing/a957253

The problem for existing and potential new TD clients is that, generally, the difference between TD and iii, when it comes to customer service, competence and efficiency, has been the difference between night and day.

I'm expecting the pricing structure to change at some point. Whether TD can retain their top class status longer term with iii running the show is uncertain.

Thanks very much for that. And thanks ti everyone on this thread who has given some input. Much appreciated.

My investment decisions have been made! Let's see how they go...

I've gone with:

- TDDI: 10K with VLS80; 10K with Vanguard All World ETF

- Pension: Highrst Risk setting with Aegon Retiready (invested in BlackRock Volatility IV)

- S&S ISA: Highest Risk setting with Aegon Retiready (invested in BlackRock Volatility IV)


Plan is to bring the £20K from the TDDI accounts into the ISA in April when the new allowance is available and bring them into the tax wrapper.

At that point I will make a decision about where to invest future savings (ie, drip feed more into TDDI/another provider, or more into the pension)


Someone do tell me if I've made a faux pas, but I feel quite comfortable at the moment with this. Thanks again.