Orbis £100 match offer - Now Ended

Alexland · 15 March 2018 at 7:41AM

Firstly, promise I am just a customer and not being paid or asked to plug this - I just think its a really good offer. Orbis are contrarian value investors and when investing your capital is at risk so this won't be for everyone.

Orbis are again running their invest £100 for a year and get a matched £100 (contributed into the account early next tax year) promotion and the offer expires on 30th April, The offer is open to new and existing customers opening a S&S ISA or Junior ISA (but sadly does not cover General Investment Accounts this time). You will not be able to get the ISA bonus for an ISA next tax year if you have already made an Orbis ISA contribution this tax year. To avoid bonus clawback the money needs to be invested in one of their 2 funds (they are focused) for at least a year.

https://www.orbis.com/uk/individual/home

https://www.orbis.com/uk/media/v63656540857/2433/matched-investment-march-2018-terms-and-conditions.pdf

Orbis are unique in only deducting a management fee on their 2 funds when outperforming the benchmarks and refunding when they underperform. If investing direct there are no platform fee or platform trade costs. In the meantime the fees sit inside reserve account for each fund from which Orbis draw their costs. Their investment strategy has delivered returns around 4% per year above the MSCI World index since they started in 1990 still past performance is no guarantee of future performance.

Also on the Junior ISA any contributions in the first 12 months (which can be 2 full tax years of allowance plus any transfers in of Junior ISA or CTF accounts) go into fee-free units until the child is 18. The snag is that you cannot switch between the 2 funds after 12 months without loosing the fee-free unit status. However any additional units you add after 12 months (subject to the annual Junior ISA contribution limit) would switch first. Also when the fee free unit dividends pay each year you will end up reinvesting them into normal units after the first 12 months.

ps I started this new thread as the terms are slightly different than last time:
http://forums.moneysavingexpert.com/showthread.php?t=5775047

Alex

bcfclee27 · 15 March 2018 at 9:18AM

Great news been waiting for this.

Thanks Alex

ewaste · 15 March 2018 at 9:41AM

"Matched investments made into a New ISA Account, or New JISA Account will be made in the 2018/19 tax year and will count towards the annual ISA or JISA allowance for that tax year. As the price of the Funds changes daily, the number of shares purchased with your matched investment is likely to differ from the number of shares you originally purchased."

Hmm well if you can only contribute to one type of each ISA per year is it worth essentially being tied to Orbis for the 2018/19 tax year for S&S ISA contributions.

Alexland · 15 March 2018 at 9:57AM

ewaste wrote: »

Hmm well if you can only contribute to one type of each ISA per year is it worth essentially being tied to Orbis for the 2018/19 tax year for S&S ISA contributions.

Yes true, the slight delay on applying the bonus into the account means that if you invested now you would be also be subscribing for next tax year. I have updated the top post to make that clear. However for someone that wasn't otherwise intending to contribute to a S&S ISA or JISA or for someone that is generally happy with Orbis' investment approach and performance (such as myself) that's still not a bad thing.

They are also offering a matched £100 on transfers-in of existing ISAs or JISA/CTFs.

Alex.

fiisch · 15 March 2018 at 11:07PM

Thanks Alexland - I like the look of this one (I was considering Nutmeg but the relatively large sign-up of £800 + £1100 compared to my total savings currently was putting me off).

My intention is still to invest in Vanguard, but thinking of chucking in a couple of hundred into Orbis in my wife's name just to get the sign-up bonus. Is a few hundred enough to get a truly balanced portfolio, or would I be better off just sticking to one fund? (Going forwards, I am looking to invest £200/month having built up an emergency buffer in a easy access saver, earning a paltry 1.32%).

bowlhead99 · 16 March 2018 at 12:49AM

fiisch wrote: »

My intention is still to invest in Vanguard, but thinking of chucking in a couple of hundred into Orbis in my wife's name just to get the sign-up bonus.

Seems fine - between you and the wife you have 2x £20,000 ISA allowance to is up each tax year and with the money you have available you are not going to get close to filling half that much. So, no issue with you doing a vanguard ISA and her doing some token amount in a product that pays a sign-up bonus.

Is a few hundred enough to get a truly balanced portfolio, or would I be better off just sticking to one fund? (Going forwards, I am looking to invest £200/month having built up an emergency buffer in a easy access saver, earning a paltry 1.32%).

No, a few hundred in one type of fund is not a particularly balanced portfolio and if you only have a couple of hundred to play with there's no point trying to buy ten separate specialist funds to make a balanced portfolio.

But that doesn't really matter, because it's only a few hundred.

If you put £200 in and get £100 free, you've made a 50% gain. So, it could crash down from that £300 position by 30% while something that was more 'balanced portfolio' just trod water and broke even, and you're still up by 5% more than if you invested in the nice balanced portfolio that broke even instead of making heavy losses.

So, going back to the earlier comment, if it's not a meaningful proportion of your total lifetime earnings in this "focused fund", and you are then starting a plan to invest in a balanced fund at vanguard into which you put more and more money so the proportion in Vanguard vs Orbis increases significantly over time, I really don't see the problem.

Alexland · 16 March 2018 at 10:36AM

Orbis offer 2 funds - a global equities fund and a balanced fund which are both more concentrated into the shares that Orbis believe will deliver above average returns. Their balanced fund includes some bonds and equity hedging (to avoid being to heavy on bonds) to reduce volatility.

I don't see a problem in having most of your money in a Vanguard ISA and a small amount in your partner's Orbis ISA to get the bonus.

Alex.

fiisch · 16 March 2018 at 11:25AM

Thank you both. I really like their website, and with me just starting out on the investment journey, there is of course another option - ISA for me; ISA for wife; + transfer JISA to really take use of the introductory offer! Then if I'm not keen on Orbis and still set on Vanguard, draw out my wife's ISA and combine with mine, then transfer to Vanguard.

Decisions, decisions.... The temptation is an extra £200 (equating to 1/12 of my contributions this year) will soften the blow of any loss in value of my modest portfolio!

cjv · 16 March 2018 at 12:19PM

Not sure how to play this.

1. I could keep my vanguard isa and make no payments into it next year, opening an orbis isa in April to get the bonus and make further deposits into orbis.

2. I could transfer my entire isa from vanguard to orbis and get the bonus.

I am leaning towards option 1, as the £100 bonus is very attractive but it is nice not to put all my eggs in one basket.

Alexland · 16 March 2018 at 12:31PM

I agree it's good to have a mix of passive and active investments as following a single passive or active strategy takes real conviction. My pensions are mostly passive and I go more active in the ISAs.

[Deleted User] · 16 March 2018 at 4:52PM

Just a quick question on this. So, if I deposit £100 into this ISA in the new tax year, does the £100 that Orbis give you count towards the annual allowance. In other words, I pay £100, Orbis give me £100, and I have £19,800 left to invest in ISAs in the financial year. Is that right?

Orbis £100 match offer - Now Ended

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