Orbis £100 match offer - Now Ended

Alexland · 14 January 2018 at 1:54PM

Hi

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

Orbis Access are again running their invest £100 for a year and get a matched £100 offer but the current offer expires on Mon 22nd Jan (or Sun 21st Jan for ISA transfers). However this time they have extended it to (1) existing customers and (2) general investment accounts.

My wife and I recently opened GIAs with £100 and they invested the matched £100 within a couple of days. She also got £100 earlier in the year from opening an ISA. To avoid bonus clawback the money needs to be invested in one of their 2 funds (they are focused) for at least a year.

I invested £4028 with Orbis in my son's Junior ISA earlier this tax year, they added £100 (to hit the ISA limit) and it's currently grown by over £500 so total return including bonus of around 15%. He is currently 100% in their Balanced fund but spent some of the period in the Equity fund. It's very hard to compare the risk with traditional 60/40 balanced funds as Orbis use equity hedging to minimise the use of bonds to control volatility.

https://www.orbis.com/uk/individual/index.html

https://static.orbisaccess.co.uk/public/114.3.53/media/1063528/orbis-access-matched-investment-offer-terms-conditions.pdf

Orbis are unique in only deducting a management fee on their 2 funds when outperforming the benchmarks and refunding when they underperform. In the meantime the fees sit inside reserve account for each fund from which Orbis draw their costs. The reserve accounts are currently looking well funded for if Orbis encounter a period of underperformance in their unashamedly active management strategy.

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 dividends pay each year you will end up reinvesting them into normal units after the first 12 months.

Alex

ValiantSon · 14 January 2018 at 8:46PM

Thanks for sharing this. Looks interesting.

Alexland · 14 January 2018 at 9:57PM

I forgot to mention that the Orbis active team equity strategy has delivered the equivalent of 12% compound returns since 1990 - over 200% returns in the past 10 years and the P/E ratios of the underlying investments are still very reasonable.

Recent analysis from FE Trustnet even suggests it's one of the best placed equity funds to weather a downturn:

https://www.trustnet.com/news/773010/the-global-funds-that-have-best-weathered-up-and-down-markets

So apart from free money, historic high returns, no fixed fees and possibly being well positioned for negative market positions, what else are people in this forum looking for?

Alex.

Liffy99 · 14 January 2018 at 9:59PM

That must be worth a £100 punt surely ?
Looks like you can have a general investment account too, as opposed to an ISA if you’ve no ISA allowance left. This year.

DrEskimo · 14 January 2018 at 10:08PM

Thanks Alex,

As you might remember from my first thread, I opened a S&S ISA recently with H&L, so wouldn't be eligible to open one here.

But I am intrigued at this opportunity and wondered if it might be worth taking advantage of it using a non-ISA account, particularly as I am unlikely to get anywhere near my annual saving allowance for quite some time?

Cheers!

Alexland · 14 January 2018 at 10:13PM

DrEskimo wrote: »

But I am intrigued at this opportunity and wondered if it might be worth taking advantage of it using a non-ISA account, particularly as I am unlikely to get anywhere near my annual saving allowance for quite some time?

Any gains on the GIA would use your allowance for dividends and capital gains (on disposal) rather than your personal savings allowance. At £100 +£100 to try the account it would take many years of compounding high returns (or another disposal using most or all of your capital gains allowance) before you had to pay tax on the gains.

https://www.moneyadviceservice.org.uk/en/articles/your-tax-rate#share-based-investments

cjv · 14 January 2018 at 10:17PM

This offer looks right up my street! thanks for sharing.

I already have an ISA so will look to open a General Account. How easy is the process of setting up regular payments, amending these and adding one off top ups? I can't seem to find this information on their site.

Alexland · 14 January 2018 at 10:24PM

cjv wrote: »

This offer looks right up my street! thanks for sharing.

I already have an ISA so will look to open a General Account. How easy is the process of setting up regular payments, amending these and adding one off top ups? I can't seem to find this information on their site.

Very easy you just setup a standing order or one off payment with your bank with a unique reference to link to your account. You then configure a default action for when new money arrives (hold as cash, or invest a percentage in either of their 2 funds). The money needs to come from the same account as they hold on record for you. In the case of the Junior ISA they wouldn't accept registering my son's bank account (he's only tiddly) and wanted it linked to my bank account.

Alex

cjv · 14 January 2018 at 10:40PM

Thanks Alex, I have been looking for a little side investment to add to my Nutmeg LISA and Vanguard ISA where I can just put money in as and when I have some spare funds.

With the £1 minimum and no fees for initial investing this looks ideal.:)

Alexland · 14 January 2018 at 10:47PM

cjv wrote: »

Thanks Alex, I have been looking for a little side investment to add to my Nutmeg LISA and Vanguard ISA where I can just put money in as and when I have some spare funds.

With the £1 minimum and no fees for initial investing this looks ideal.:)

If you only put £1 in they will only give you £1 matched.

Unlike Nutmeg the companies house records show Orbis Access is a viable company although heavily reliant on the parent Orbis company. It's probably similar for Vanguard Investor who probably don't have enough direct consumer scale yet to stand up without help from the Vanguard parent company.

Still you get £50k FSCS protection with each of them, except it gets complicated when Nutmeg hold Vanguard ETFs as part of your portfolio. I am a bit old fashioned and take regular printouts of my accounts incase I ever need to claim or to help in the event I die unexpectedly.

cjv · 14 January 2018 at 10:56PM

Oops my post came across wrong, I didn't intend to open it with £1.:D

I will deposit £500 and get the £100 bonus to start the ball rolling.

I meant that going forward if I have £5 or £500 spare in any given month, I can invest due to the low minimum requirement, It is a nice option to have.

Orbis £100 match offer - Now Ended

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