Wealth Management Guide

Welcome to our Wealth Management Guide section at Wealth Management UK.

Articles

Here's our summary of the latest articles...

Exchange Traded Funds

An exchange-traded fund, commonly referred to as ETF, is a type of investment fund traded on the stock exchanges in the same way that companies do. An ETF invests in assets such as shares, commodities and bonds and aims to trade at around the same price as the NAV (net asset value) of it’s underlying assets throughout the course of a...

Real Estate Investment Trusts

A real estate investment trust, more commonly referred to simply as a REIT is merely an investment vehicle that offers a more tax efficient way of investing in property. Its primary target is to get rid of the tax problems associated with investment in properties through a form of pooling investment (such as a property company) in...

Unit Trusts

Unit trusts are a type of investment funds and are commonly referred to as open ended investment companies (OEICS for short) and are managed asset portfolios that frequently invest solely in shares but can also include bonds, gilts and cash. The premise is really quite simple, the investor buys a unit (or a share when considering OEICS) in...

Investment Trusts

Investment trusts are form of pooled investments predominantly UK-based, closed-end funds and are classed as PLC (Public Limited Companies) as they are publicly traded. Investment trusts are typically a set amount of capital divided into shares similar to unit trusts, however in contrast to the unit trusts, investment trusts are closed...

Offshore Investments

For some individuals looking to benefit from private wealth management, the various advantages of investing offshore can be a key draw to the sector. The primary and most famous (or infamous) benefit is the tax advantages that comes with offshore investment opportunities. One of these is that you can defer paying tax for the lifetime of an...

Inheritance Tax Planning

Effective inheritance tax planning has the potential to help save an individuals surviving family members a lot of money, amounts that can vary based on the size of the individuals estate. At its most basic level, inheritance tax, commonly referred to as simply IHT, is the tax owed on their estate should they pass away if the amount their...

Exchange Traded Funds or Mutual Funds?

As exchange traded funds are traded, as the name suggests, is traded on a stock exchange which unfortunately means that they frequently come with a brokerage charge. However, with private wealth management individuals these commissions are usually only a tiny amount in comparison to the investments made. In contrast, mutual funds purchased...

Income Distribution Bonds

Possibly the key feature of a distribution fund is that it draws a line between the income that it generates and the growth that the money accumulates. The investor can then decide whether they wish to withdraw this income or reinvest it within the fund. There are a variety of income distribution funds and choosing the one that is right for...

Individual Savings Accounts

An individual savings account, commonly referred to as ISA, are a government backed tax exempt savings scheme which was first put into place in 1999 with the goal of encouraging individuals to start saving money. Whilst they were launched in 1999, the actual rules and regulations associated with their usage were reformed in 2008 in order to...

Venture Capital Trusts

Not all company shares are listed on the stock exchange, in fact in order to protect investors, listing requirements effectively bar recently established, smaller companies from having their shares traded on an exchange. However, it is frequently exactly these kinds of recently established companies that would benefit most from the access...

Government Bonds

The UK government, through the Debt Management Office, an executive agency of the HM Treasury, dominates the sterling bond market, that is, those bonds that are issued in sterling currency. All other sterling bonds, from other issuers, have the UK government bond, or gilt, marked as their benchmark. The government issues bonds of the...

Corporate Bonds

A corporate bond is a bond issued by a corporation. It is a bond that a corporation issues to raise money in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. (The term "commercial paper" is sometimes used for...

Commercial Property Investment

Until recently, investing in commercial property was the preserve of institutions with deep pockets. Private investment tended to focus on residential property, as evidenced by the growth in the buy-to-let market in recent years. However, whereas returns from residential property have largely been the result of rapid increases in capital...

Personal Pension Schemes

There is a growing interest in using self-invested personal pensions (SIPPs) even if direct property investment is not required. A SIPP is where the pensions legal status and administration are separated from the investment. So, unlike a traditional insurance company plan, where the whole plan is packaged together, you pay a fixed fee for...

Discretionary Portfolio Management

The world of investment can be a confusing one for the uninitiated but for those of us who have neither the time nor the inclination to monitor the markets and select our own investments, using the services of a discretionary portfolio management specialist can significantly reduce the investment headache. This kind of service is for...

Equities

A company is owned by it’s shareholders. A share in a company allows its holder to participate in the profits, as well as any losses, that the company might generate. Shares therefore represent the risk-bearing part of a company’s capital. This is in contrast, to a company’s debt which is usually secure on it’s assets and which has...

Derivatives

Although equities are a very tempting investment and can provide an attractive return over the longer term, an active investor wishing to profit over the short term, especially when share prices are either particularly volatile or tending to fall, will find life very difficult. This is because it is not possible to “go short” that is,...

Hedge Funds

A hedge fund is a fund that uses aggresive strategies not usually available to private investors or the managers of unit trusts etc, including short selling, swaps, arbitrage, derivatives, leverage and program trades. Such strategies may make heavy use of quantitive analysis. hedge funds target absolute performance rather than relative...

Enterprise Investment Scheme

The Enterprise Investment Scheme offers generous income tax and capital gains tax reliefs to investors in certain companies. Individuals may invest any amount in Enterprise Investment Scheme shares. However, only the first £400,000 invested in any one tax year (£200,000 prior to the tax year 2006/07) will qualify for income tax relief and...

Alternative Investment Market

There has been a huge increase of interest in portfolios of Alternative Investment Market stocks recently, as AIM shares continue to qualify for business property relief and to be exempt from inheritance tax after they have been held for two years. Also, the taper relief rules means that you only have to pay 10 per cent capital gains tax...