Frequently asked questions

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FAQs

Top 10

  • 1.

    How is this service different to other online services?

    Most online services do not provide advice based upon your personal circumstances. They are known as ‘execution only’ services. You therefore carry the risk of investing in funds that do not perform within your tolerance for risk and potentially expose you to losses that you do not have the capacity to accept. Also, if you get it wrong you have no form of redress. We go to great lengths to make a suitable recommendation for you and our advice is covered under the Financial Ombudsman service.

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  • 2.

    What does it cost?

    Our charge for this service is made up of two elements:

    • An initial charge for the service you receive when establishing your plan; and
    • An ongoing charge to ensure your portfolio remains on track in future

    The exact charges will depend on your investment amount and risk grade. These will be given in your personalised investment management proposal and agreed online before you invest. Once you have agreed these charges they will be confirmed in your Suitability Letter. You can view our fees page for an indicative breakdown.

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  • 3.

    Is there a minimum or maximum investment?

    The minimum lump sum investment is £1,000 and the minimum monthly investment is £100. There is no maximum investment, however, the amount that can be allocated to an ISA cannot exceed the permitted annual limit applying in the tax year you invest. We aim to offer truly diversified portfolios. You can add more money whenever you like.

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  • 4.

    Can I speak to an Adviser?

    If at any stage of the process you are unsure, or need help, you can request a call back from an Adviser for assistance.

    Close ×
  • 5.

    How will you build my portfolio?

    We use respected academic theory to build portfolios tailored to investors’ requirements. These solutions provide what we feel is the optimum mix of assets to deliver the highest possible return for the level of risk you are willing and able to accept.

    Close ×
  • 6.

    Does this service provide advice?

    Yes. Within this service we will make a ‘Personal Recommendation’ based on the information that you provide us, so it’s crucial that you answer all questions honestly. We go to great lengths to target your portfolio to perform within risk parameters that are right for you. This is quite different to many services on offer that provide an unadvised ‘execution only’ service.

    This service offers a discretionary investment service, supported by an Adviser. The automated process is designed to provide advice of a restricted nature based on restricted information provided by you: it is NOT a full advisory service. An Adviser, however, is on hand to answer any questions you may have – just email us or request a call back if you need help at any point.

    Once you have taken the decision to invest, the investment management team makes decisions to buy and sell investments on your behalf in line with the risk grade you have selected. You do not have to give your consent for every transaction; instead, you agree that the investment management team will take responsibility for your investments when you accept the Terms and Conditions. In these terms, there is a commitment and promise to manage your account with skill, care and in accordance with the information you provide.

    Close ×
  • 7.

    Can I transfer existing assets in to this service?

    We are happy to accept transfers into the service (such as transfer of an existing ISA). However, due to the limitations of this being an online advice process we are NOT able to make recommendations on which assets you should sell or transfer. This will be solely down to your discretion. If you are unsure, please contact us.

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  • 8.

    How will you manage my portfolio on an ongoing basis?

    Each month our investment managers review each of the underlying funds in their investment universe to assess their suitability for continued inclusion within your portfolio. Where a fund is no longer meeting our criteria, we will replace it with a more suitable one.

    In addition we will periodically rebalance your portfolio to ensure it remains true to your risk profile throughout the year.

    Close ×
  • 9.

    Am I locked in?

    No. Investing is a long-term proposition, but you can withdraw at any time and there’s no minimum investment period. We would suggest you do not invest in the stock market unless you have a timeframe of at least 3 to 5 years.

    Close ×
  • 10.

    What is a simplified advice service?

    Simplified advice is a streamlined advice process aiming to address straightforward needs of clients. It is a limited form of advice, in that it is focused on one or more specific needs without involving a full analysis of client circumstances if they are not directly relevant.

    The outcome of the simplified advice process is to make a specific recommendation, provided it’s suitable, based on the information provided by you. It is therefore important to be honest and accurate in the answers you give to ensure you receive an accurate recommendation.

    Close ×

Advice

Can I speak to an Adviser?

If at any stage of the process you are unsure, or need help, you can request a call back from an Adviser for assistance.

Close ×

Does this service provide advice?

Yes. Within this service we will make a ‘Personal Recommendation’ based on the information that you provide us, so it’s crucial that you answer all questions honestly. We go to great lengths to target your portfolio to perform within risk parameters that are right for you. This is quite different to many services on offer that provide an unadvised ‘execution only’ service.

This service offers a discretionary investment service, supported by an Adviser. The automated process is designed to provide advice of a restricted nature based on restricted information provided by you: it is NOT a full advisory service. An Adviser, however, is on hand to answer any questions you may have – just email us or request a call back if you need help at any point.

Once you have taken the decision to invest, the investment management team makes decisions to buy and sell investments on your behalf in line with the risk grade you have selected. You do not have to give your consent for every transaction; instead, you agree that the investment management team will take responsibility for your investments when you accept the Terms and Conditions. In these terms, there is a commitment and promise to manage your account with skill, care and in accordance with the information you provide.

Close ×

What is the online investment service designed to do?

This service helps you by providing just the right amount of advice to match your investment objectives to a risk level that is selected by asking you questions about your risk tolerance (your personal acceptance of risk) and your risk capacity (your financial ability to bear loss).

You will be guided through a process that gathers relevant details about your investment amounts and timeframe and then a process to assess what risk level is right for your investment. Next, we will provide you with a comprehensive investment management proposal that outlines the investment portfolio that we are proposing to build for you based upon what we have assessed to be the right risk level for you. Naturally we will also ensure that we provide guidance on how to best use your ISA allowances at this stage.

If you wish to proceed and set up an ISA or General Investment account (GIA) to establish your portfolio, you can do so online. At this stage we will need to ask you some personal questions about your financial situation and after investing we will provide you with a full suitability report confirming the parameters of this service and why it is right for you.

Close ×

What is a simplified advice service?

Simplified advice is a streamlined advice process aiming to address straightforward needs of clients. It is a limited form of advice, in that it is focused on one or more specific needs without involving a full analysis of client circumstances if they are not directly relevant.

The outcome of the simplified advice process is to make a specific recommendation, provided it’s suitable, based on the information provided by you. It is therefore important to be honest and accurate in the answers you give to ensure you receive an accurate recommendation.

Close ×

Assets

Can I transfer existing assets in to this service?

We are happy to accept transfers into the service (such as transfer of an existing ISA). However, due to the limitations of this being an online advice process we are NOT able to make recommendations on which assets you should sell or transfer. This will be solely down to your discretion. If you are unsure, please contact us.

Close ×

How will you build my portfolio?

We use respected academic theory to build portfolios tailored to investors’ requirements. These solutions provide what we feel is the optimum mix of assets to deliver the highest possible return for the level of risk you are willing and able to accept.

Close ×

Can I invest in an ethical portfolio within this service?

No, our portfolios aim to invest in the best funds available within the investment universe. If your investment decisions are driven by a particular ethic, moral or belief please contact us.

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What assets am I investing in?

The investments that sit within our portfolios may include:

  • Collective investment vehicles
  • Unit trusts
  • Open Ended Investment Companies (OEICs)
  • Fixed interest securities
  • Cash

These are non-complex investment products. Our investment managers are free to select whichever mix are best suited to meet your risk grade. Full details of those selected for you are provided part way through this service in your Investment Proposal.

Close ×

Fees

What does it cost?

Our charge for this service is made up of two elements:

  • An initial charge for the service you receive when establishing your plan; and
  • An ongoing charge to ensure your portfolio remains on track in future

The exact charges will depend on your investment amount and risk grade. These will be given in your personalised investment management proposal and agreed online before you invest. Once you have agreed these charges they will be confirmed in your Suitability Letter. You can view our fees page for an indicative breakdown.

Close ×

Online Investment

How can I manage my ISA allowance within this service?

We will take you through a set of questions that will allow you to:

  • Put your full ISA allowance into your Stocks and Shares ISA with this service

Any excess contributions will be invested in our General Investment Accounts.

If you have already invested in an ISA elsewhere this tax year, we suggest that you review your ISA contributions before the end of the tax year to ensure you maximise any unused allowance.

Close ×

Can I withdraw from an ISA?

You can take money out of your ISA whenever you want. You should remember, however, that when you withdraw money from your ISA, part of the allowance remains used. This means, for example, that if you reach the ISA limit and then make a withdrawal, the money cannot be put back in.

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How do you calculate my investment projection?

There are various methodologies that can be used for projections and graph illustrations. There is a standard statistical methodology for forecasting in regression analysis, which uses confidence intervals, as per the formula: mean of x +/- (standard error × critical value of t for 90% confidence interval).

This essentially offers an estimate of likely returns based on the probability distribution of the portfolio, assuming the mean and standard error remain static over the investment period and the portfolio returns remain normally distributed.

The methodology that we have adopted uses the actual historic rolling average 5th and 95th percentiles over 1, 2, 3, 5, 10 and 20 years, from 1994 to 2013. The advantage of this methodology is that we’re not making any assumptions on the distribution of returns, or the return estimates themselves. The assumption instead is that the historic performance will on average be repeated in the future. We then change between the 5th and 95th percentiles for each period, as you increase your investment horizon. E.g. initially we use the 1 year percentiles, then the 2 year percentiles, then 3 year, then 5 year etc. This creates a curve which drops substantially initially (as there is a significant variation in your potential returns over a 1 year horizon) but as you increase your investment period, there is greater certainty in the range of your outcomes to the point where your 5th percentile is no longer negative around the 5 year rolling average period.

Both methodologies are accurate, we use a forecast based on historic values over a representative 20 year period, as this means we are NOT making any assumption or estimates of likely returns. Instead we use history and base the projection on how the assets have performed in the past.

In all cases, projections are just that, a projection. They are not a guarantee of future returns and should be viewed in that context. You must always remember that investment in the stockmarket can go down as well as up and that past performance may be different and should not be relied upon as an indication of future returns.

The investment projection includes the effect of fees, assumes income is reinvested and does not take into account the effects of inflation or tax. Your investment may lose money as projections are never a perfect predictor of future returns, and are intended as an aid to decision making and education rather than a guarantee of meeting predicted levels. We calculate the expected long-term average returns for the investment portfolio, as well as the spread of likely outcomes that you see shown in the chart, using long-term historical data. The projection chart identifies the probabilities of achieving various possible outcomes at different time horizons, based on the historic volatility of each asset class. We assume that both any income is reinvested and that any monthly contributions you select are maintained. The projections do not include the effects of tax on investment income, tax on capital gains, of changing your risk profile, or of future changes to our investment strategy.

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How are my investments and money looked after?

In order to provide advice to you and in making recommendations we undertake a thorough due diligence process. As a result of our extensive due diligence we selected Parmenion to provide the administration and investment management that supports our online advice service. Parmenion is a wholly owned subsidiary of Aberdeen Asset Management PLC and Aberdeen Investments Limited.

Parmenion do not take on clients directly, but only offer investment and administration solutions through professional wealth management and financial planning firms. Like us, they are authorised and regulated by the Financial Conduct Authority.  Under FRN:  462085

Client Money:

Parmenion will hold all your investment money as client money in accordance with the rules of the Financial Conduct Authority which, amongst other things, requires them to hold money in a client bank account, established with statutory trust status. All funds are segregated from Parmenion’s own funds at an approved bank. Cash received in a currency other than sterling will be converted to sterling at a rate determined by Parmenion at the time. This additional process may cause a delay in crediting the account with the sterling proceeds before investment can be made.

All monies will be held with the money of other clients in a pooled account in the name of Parmenion Capital Partners LLP A/C, held as a common pool but as a ‘Client Account’. Your cash and investment are always held separately from Parmenions own accounts. In the unlikely event that Parmenion fails financially, your cash and assets will remain yours and any administration will be obliged to return them to you.

If Parmenion fails, broadly speaking, all client money held by them in client money bank accounts is pooled and then distributed to clients on a pro-rata basis in accordance with individual client entitlements to the client money pool in general. Were there to be a shortfall in the total amount of client money held in trust accounts, held by Parmenion, you would also share in a proportion of any shortfall.

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What is the Investment Proposal?

We are keen to ensure you understand the commitment you are making before you invest. We therefore provide a personalised investment proposal part way through the process to outline the parameters, potential volatility characteristics and expected return from your investment. You are free to print it off and read it at your leisure. This is provided free of charge.

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Is there a minimum or maximum investment?

The minimum lump sum investment is £1,000 and the minimum monthly investment is £100. There is no maximum investment, however, the amount that can be allocated to an ISA cannot exceed the permitted annual limit applying in the tax year you invest. We aim to offer truly diversified portfolios. You can add more money whenever you like.

Close ×

If you already have a pension or if you are looking to plan for your retirement.

There are significant tax advantages because you obtain favourable tax treatment on the pension investments and contributions similar to those applying to an ISA. If you do not need access to your money until you retire (or at a minimum of 55 years of age) you may wish to consider your retirement options before taking out an investment.

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Do you offer pensions?

We don’t currently offer pensions.

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How is this service different to other online services?

Most online services do not provide advice based upon your personal circumstances. They are known as ‘execution only’ services. You therefore carry the risk of investing in funds that do not perform within your tolerance for risk and potentially expose you to losses that you do not have the capacity to accept. Also, if you get it wrong you have no form of redress. We go to great lengths to make a suitable recommendation for you and our advice is covered under the Financial Ombudsman service.

Close ×

What is the online investment service designed to do?

This service helps you by providing just the right amount of advice to match your investment objectives to a risk level that is selected by asking you questions about your risk tolerance (your personal acceptance of risk) and your risk capacity (your financial ability to bear loss).

You will be guided through a process that gathers relevant details about your investment amounts and timeframe and then a process to assess what risk level is right for your investment. Next, we will provide you with a comprehensive investment management proposal that outlines the investment portfolio that we are proposing to build for you based upon what we have assessed to be the right risk level for you. Naturally we will also ensure that we provide guidance on how to best use your ISA allowances at this stage.

If you wish to proceed and set up an ISA or General Investment account (GIA) to establish your portfolio, you can do so online. At this stage we will need to ask you some personal questions about your financial situation and after investing we will provide you with a full suitability report confirming the parameters of this service and why it is right for you.

Close ×

Portfolio

How will you manage my portfolio on an ongoing basis?

Each month our investment managers review each of the underlying funds in their investment universe to assess their suitability for continued inclusion within your portfolio. Where a fund is no longer meeting our criteria, we will replace it with a more suitable one.

In addition we will periodically rebalance your portfolio to ensure it remains true to your risk profile throughout the year.

Close ×

How will you build my portfolio?

We use respected academic theory to build portfolios tailored to investors’ requirements. These solutions provide what we feel is the optimum mix of assets to deliver the highest possible return for the level of risk you are willing and able to accept.

Close ×

Do you offer an ISA?

Yes, we will ask you a number of questions and provide suggestions on how you can make best use of this year’s allowances.

Close ×

What assets am I investing in?

The investments that sit within our portfolios may include:

  • Collective investment vehicles
  • Unit trusts
  • Open Ended Investment Companies (OEICs)
  • Fixed interest securities
  • Cash

These are non-complex investment products. Our investment managers are free to select whichever mix are best suited to meet your risk grade. Full details of those selected for you are provided part way through this service in your Investment Proposal.

Close ×

Your account

How can I manage my ISA allowance within this service?

We will take you through a set of questions that will allow you to:

  • Put your full ISA allowance into your Stocks and Shares ISA with this service

Any excess contributions will be invested in our General Investment Accounts.

If you have already invested in an ISA elsewhere this tax year, we suggest that you review your ISA contributions before the end of the tax year to ensure you maximise any unused allowance.

Close ×

Can I withdraw from an ISA?

You can take money out of your ISA whenever you want. You should remember, however, that when you withdraw money from your ISA, part of the allowance remains used. This means, for example, that if you reach the ISA limit and then make a withdrawal, the money cannot be put back in.

Close ×

Can I withdraw all my money?

It’s your money and you can request all or part of it back at any time. Withdrawals are free. After we close your account, we hold your personal information for a time as required by law. You should always remember however that the value of investments can go down as well as up, and consequently it may not always be possible to receive back the full amount originally invested. The sum available to you in the event of surrendering your investment will be dictated by value of the underlying assets making up your portfolio at the time your investments are sold. A withdrawal instruction must be received before 21.00 in order for the sale of funds to be executed the following working day.

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How easy is it to cancel or close my account?

You can close your account and withdraw money whenever you decide. Please remember, however, that you may not get back the full amount you invested.

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What do I do if I have a complaint?

Wealth Horizon has a strict complaints policy to resolve any issues quickly and efficiently. If you have a complaint about our services or products, please send a letter to Compliance Department, Wealth Horizon, 2 College Square, Anchor Road, Bristol, BS1 5UE.

If you are dissatisfied with how we have dealt with your complaint and meet the FCA criteria, you will be able to refer your complaint against us to the Financial Services Ombudsman Service. The Financial Ombudsman, South Quay Plaza, 183 Marsh Wall, London E14 9SR. We will let you know when and how you can do this.

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Does the service offer an annual review?

Yes, you are free to review your portfolio online at any time, but we will remind you annually. We will check your risk level is still appropriate and suggest any changes if required. In addition we will ask you some simple questions to ensure nothing has happened in your life that would benefit from further advice.

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Can I invest if I am not a UK resident?

Our services are available to UK residents only. This means as long as you are a UK resident for tax purposes you are eligible to invest with us. Unfortunately, our services are unavailable to American citizens (even those with dual nationality) due to the US government’s tax reporting requirements.

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Am I locked in?

No. Investing is a long-term proposition, but you can withdraw at any time and there’s no minimum investment period. We would suggest you do not invest in the stock market unless you have a timeframe of at least 3 to 5 years.

Close ×

How can I pay money into my account?

Making your payment is easy. You can either do it online via our secure payment service or simply send us a cheque.

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Can I change my mind?

Under our ISA and GIA terms you have 14 days in which to cancel from the date we receive your completed application. If you cancel your ISA within 14 days of us receiving your application you will be able to invest in another ISA in the same tax year. You will bear any shortfall on the investment should your investments have fallen in value during the cancellation period.

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Investment risk: Investment in the stock market is not a suitable place for short term money and you may not get back what you put in. All investment carries risk and it is important you understand this, if you are in any doubt about whether an investment is suitable for you, please contact us. Investment in the stock market and any income derived from it, may go down as well as up.

Wealth Horizon certainly lives up to its promise of making investment simple to understand

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