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Ramondo
Posted: 31 October 2022 16:03:05(UTC)
#1

Joined: 20/10/2018(UTC)
Posts: 700
I've taken advantage of an offer high lighted in Martins Money weekly email.

Basically invest over £50-00 and after one year you will receive a cashback of £50-00, so a no loss situation.
I opened with £60-00, first purchase made on the 24/10/22. looked at my account today after one week I have £60-82, a 1.37% increase!
You can see your investments which they have made for you after you have decided on the risk level, I decided upon 'tentative', which is the fourth level plan out of 5 levels, going from 'adventurous to 'cautious.

I'm not sure if the offer is still running, but it's an interesting concept as I have 18 different funds in my holding, as the plan level is 'tentative', the funds are such as:

10/2022 Purchase Buy 2.23 shares of L&G UK Mid Cap Index £1.12

27/10/2022 Purchase Buy 1.25 shares of L&G Global Infrastructure Index Fund £0.99

27/10/2022 Purchase Buy 0.66 shares of L&G FTSE 100 £1.64

27/10/2022 Purchase Buy 0.75 shares of L&G Global Property £0.54

27/10/2022 Purchase Buy 0.26 shares of L&G Asia Pacific ex Japan £0.52

27/10/2022 Purchase Buy 14.68 shares of L&G Short Dated Sterling Corporate Bonds £7.80

26/10/2022 Purchase Buy 0.45 shares of Fidelity Index Japan £0.78

26/10/2022 Purchase Buy 1.07 shares of iShares Overseas Corporate Bonds £1.69

26/10/2022 Purchase Buy 2.47 shares of Fidelity Index US Hedged £3.31

26/10/2022 Purchase Buy 0.18 shares of HSBC American Index £1.64

Yes, of course anyone could duplicate this type of holdings, but it's interesting and could well take business from the main platforms as you put your money in and that's it, hopefully with a profit return.
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Old Jock
Posted: 31 October 2022 16:43:12(UTC)
#2

Joined: 04/06/2018(UTC)
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Interesting attempt to appeal to investors with small amounts and who don't want the overhead of choosing their own funds - I see the minimum investment is only £1 and after you pick one of the 5 risk appetites you're done.

An expected return of 100% on your original £50 is also half decent to say the least.

With an annual platform charge of 0.6% though I would struggle to see it attracting business from the larger platforms, although the extra fund charges look very small as well.

I would say Vanguard is the other low cost and low overhead option, at 0.2% platform charge and a developed world tracker for 0.12% (and an S&P500 tracker for 7bps).

Being on an app and I presume simple to set up, Wealthify could be an excellent way of getting kids/teenagers into the investing habit though.
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Ramondo on 31/10/2022(UTC)
Bulldog Drummond
Posted: 31 October 2022 17:00:31(UTC)
#3

Joined: 03/10/2017(UTC)
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With total charges of 0.76% for Wealthify, the Vanguard platform or a direct investment into a tracker looks like a better deal. But probably a decent option for anyone who just wants an annual statement.
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Ramondo on 31/10/2022(UTC), Old Jock on 31/10/2022(UTC)
Fife Clive
Posted: 31 October 2022 17:23:07(UTC)
#4

Joined: 01/12/2021(UTC)
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In an unwrapped account being directly invested in that many underlying funds would scare me from a Capital Gains accounting perspective.

I see this as essentially the Nutmeg model, get people to fall into a 1-5 risk rating, and give them a complicated looking asset allocation that (really) just corresponds to Vanguard Lifestrategy 20/40/60/80/100. And charge 0.6% for the privilege of putting an app on top.

Not quite sure who this is serving who couldn’t get a similar asset mix cheaper at the big V but I suppose it’s not too outrageously priced. Enjoy your £50 and compounding 1.3% weekly returns though!
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4 users thanked Fife Clive for this post.
Ramondo on 31/10/2022(UTC), Bulldog Drummond on 31/10/2022(UTC), Newbie on 31/10/2022(UTC), Tim D on 31/10/2022(UTC)
Bulldog Drummond
Posted: 31 October 2022 17:35:38(UTC)
#7

Joined: 03/10/2017(UTC)
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To add to FC's post, it's always worth comparing these devices with a US tracker charging 0.07%, i.e. less than a tenth of Wealthify fees, and which will more likely than not outperform over time, even ignoring fees.
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2 users thanked Bulldog Drummond for this post.
Fife Clive on 31/10/2022(UTC), Ramondo on 01/11/2022(UTC)
Tim D
Posted: 31 October 2022 18:41:51(UTC)
#5

Joined: 07/06/2017(UTC)
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Fife Clive;245989 wrote:
In an unwrapped account being directly invested in that many underlying funds would scare me from a Capital Gains accounting perspective.


100% this. Does it come with any particular support for CGT reporting and tracking book costs correctly (including handling of equalisation and Acc units)? I know a lot of folks starting small just think "oh, I'm way below CGT thresholds" but life has a way of catching up with you... either the funds grow so that you are in scope for it (or the govt may change the rules... the "office for tax simplification" was seriously proposing the threshold be reduced to zero!), or some other big transaction (selling a rental property or second home...) may tip you over the line and have you scrobbling around to work out book costs and gains over a very long history of transactions and a lot of holdings. Out of tax wrappers, keeping it simple (and keeping good records) should be the rule.
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4 users thanked Tim D for this post.
Julianw on 31/10/2022(UTC), Fife Clive on 31/10/2022(UTC), Guest on 01/11/2022(UTC), Ramondo on 01/11/2022(UTC)
Thrugelmir
Posted: 31 October 2022 18:59:58(UTC)
#6

Joined: 01/06/2012(UTC)
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Fife Clive;245989 wrote:


Not quite sure who this is serving who couldn’t get a similar asset mix cheaper at the big V


Interestingly Vanguard don't benchmark their VLS range. Their investment team determines the asset allocation. Cheaper portfolio fees may not always correspond to better performance. Only time will tell.
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1 user thanked Thrugelmir for this post.
Ramondo on 01/11/2022(UTC)
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