Managed Portfolio Service - 'Navigator'
If you have clients with £20,000 or more to invest, our Navigator portfolios offer three professionally and discretionary managed, risk-rated investment strategies. Navigator is designed for those individuals who want to invest a smaller initial lump sum with the flexibility of being able to make regular top ups into their portfolio.
The structure of the Navigator portfolios means that any potential liability to capital gains tax will accrue more steadily thanks to the small and subtle changes made to the portfolio and the client is not locked into a strategy for the long term and has the ability to switch as their circumstances change.
A cost effective investment management solution, our Navigator portfolios can be used for a variety of different needs including:
Personal accounts/general investment accounts (GIA)
Self-Invested Personal Pensions
Three risk-rated strategies; Cautious, Balanced and Adventurous
Our three risk-rated strategies have been profiled by Dynamic Planner - the UK’s most widely used digital risk profiling and financial planning service. Dynamic Planner is used by many thousands of financial planners and a wide range of financial institutions to ensure investment suitability. Find out more about Dynamic Planner and their risk profiles here.
A cautious investor is potentially looking for returns that are better than those obtained from cash and will accept some volatility, or movement in prices, up and down. Cautious investors are likely to be risk averse and the preservation of nominal capital is important over all timeframes – even if this means that the portfolio fails to keep up with inflation. The risks relative to world equity markets will be typically between 40% and 60% although potentially they may move outside this range on a shorter term basis.
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A balanced investor is potentially looking to match risk and reward; primarily aiming to preserve the real value of their capital. They accept that investments are inherently volatile and are prepared to accept some volatility in the short term in order to secure longer term gains. The risks relative to world equity markets will be typically between 60 and 80% although potentially it may move outside this range on a shorter term basis.
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An adventurous investor is prepared to accept significant risk in pursuit of real returns ahead of inflation. As a result, they will recognise that this may result in high levels of volatility, that is, movements up and down over all timeframes. They will be prepared to accept this volatility due to their likely focus on growth. The risks relative to world equity markets will be typically between 80% and 110% although potentially it may move outside this range.
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What is the Enterprise Investment Scheme (EIS)?
The Enterprise Investment Scheme is a UK Government scheme which provides certain tax reliefs to private investors who invest into EIS qualifying, growing British companies, provided the investment is held for a minimum of three years.
Why the WHIreland Discretionary EIS Portfolio?
An evergreen, Discretionary EIS Portfolio giving each investor a portfolio of a minimum of 4 EIS qualifying investments.
Invests in UK growth companies quoted on AIM.
Experienced AIM EIS Portfolio Manager supported by specialist research team.
Continual portfolio monitoring to ensure companies retain 'qualifying status' for EIS purposes and to assess ongoing financial performance.
Reviewed by MICAP.
Ability to defer capital gains for up to three years.
Losses generated over and above the initial tax relief can be used to reduce income tax.
Who could benefit from EIS? Benefits at a glance
|Inheritance Tax (IHT)
|Providing the investment is still held upon death, the portfolio should be IHT free after just 2 years. The portfolio can be held after the life of the EIS finishes.
|Income tax relief
|An EIS can be used to claim up to 30% income tax relief in a current or previous tax year, providing the investment is held for at least three years - the required minimum holding period.
|Capital Gains Tax (CGT)
CGT liability can be deferred under EIS following the sale of shares or liability. All capital gains made from EIS investments are tax free - when held for the minimum three year holding period.
The EIS offers an alternative way to invest tax efficiently for retirement for those reaching their Lifetime Allowance and complementing their pension investments.
Income tax relief can be used to offset the tax paid on pension income post retirement.
To learn more call us on 0800 877 8866
The main risks of EIS investing
Investments will be in unquoted companies (for these purposes this includes AIM quoted companies) and are, therefore, higher risk than publicly listed securities or, in the case of AIM quoted companies, those listed on the main market. The client's capital will be at risk and they may not get back the full amount invested; they may, therefore, lose some or all of their investment. The client should not invest in the Portfolio unless they have carefully thought whether they can afford it and whether it is right for them, after taking professional advice.
To keep the entitlement to the EIS Reliefs, the client must be prepared to leave their investment in each Investee Company for at least three years; any earlier realisation may risk losing some or all of their EIS Reliefs.
EIS benefits and reliefs are correct as at July 2018. These may change from time to time and are not guaranteed. The Portfolio has been designed with UK resident taxpayers in mind and may not be appropriate or advantageous if a client is not resident in the UK for tax purposes. In addition, certain of the EIS Reliefs may not be available if the client ceases to be UK tax resident or are not UK tax resident at the relevant time.
More information on the risks of investing in the WHIreland Discretionary EIS portfolio are available upon request.
Protecting your clients' assets
Our Inheritance Tax Portfolio service helps a client pass on more of their wealth by investing in Business Relief qualifying companies quoted on the Alternative Investment Market (AIM).
Business Relief qualifying assets that are held for a minimum of two years are exempt from Inheritance Tax (if still held upon death).
How the service works
Inheritance Tax (IHT) is currently levied at 40% of the value of the client's estate above the nil rate threshold – £325,000 for an individual and £650,000 for a married couple (or civil partnership)*. One way to minimise their potential tax liability is to own an investment portfolio of shares in IHT exempt smaller companies for two years or more upon death.
Investing on AIM (the London Stock Exchange Alternative Investment Market) carries greater levels of risk than investing on the FTSE100. We therefore follow a clearly defined investment process; identifying high quality growth companies on valuations that we deem to be attractive.
We engage with those AIM listed companies and HMRC to determine their exact IHT status. Although we select investments with a view to holding them for a minimum of two years, the portfolio composition does not have to remain static. Consequently, if a holding in a qualifying company is sold after six months, those six months count towards the two year IHT tax exempt qualifying period provided funds are reinvested into another qualifying company.
To minimise the burden associated with monitoring and administering the investments, our Inheritance Tax Portfolio Service is offered on a discretionary management basis, thereby providing specialist investment management as well as the range of usual benefits associated with our standard discretionary service.
*Correct as at 30 June 2017
Understanding the risks
Like all investments, it is possible that shares could fall in value as well as rise. Other risks to consider are;
Investments carry varying degrees of risk which means the client may get back less than they originally invested when they come to sell their investments.
Tax treatment is dependent upon the client's personal circumstances and tax rules may change in the future meaning tax relief cannot be guaranteed.
Tax relief is subject to the AIM companies we invest the client's money into maintaining their qualifying status.
AIM shares are likely to be more volatile than shares in the London Stock Exchange FTSE 100.
An AIM Portfolio may be suitable if;
A client is prepared to invest in higher risk shares and accept a high degree of volatility in their investments.
They are seeking an IHT mitigation scheme that can be effective after as little as two years.
On their death, the value of their estate (everything they possess and own outright) exceeds the £325,000 personal allowance (the upper limit for IHT nil rate band from April 2012 (the personal allowance)). This has been frozen until the 2020/21 tax year. Please note that this does not include the potential use of the residential nil rate band.
A client does not want to lose control of, or access to, their capital.
They are seeking a straightforward, transparent, less expensive IHT mitigation scheme where there is no need to establish complex, opaque and costly legal arrangements.