Investments | 24 June 2024

 Coutts Invest ISA and personal pension: What are you investing in?

We focus on the funds behind the tax-efficient ISA and personal pension available through Coutts Invest.

START INVESTING FOR YOUR FUTURE WITH COUTTS INVEST

The value of investments, and the income from them, can go down as well as up, and you may not receive the amount of your original investment.

A stocks and shares ISA could help you grow your money for the future and save you tax. Put up to £20,000 into one or more ISAs by 5 April 2025 and you do not pay any capital gains or income tax on your returns. A good deal.

Meanwhile, a personal pension plan, which could be particularly useful if you do not have a workplace pension, comes with several potential tax advantages.

They include income tax relief on what you pay in. So, to make a total pension contribution of £1,000, for example, you only pay £800 while the government pays the other £200. And if you pay more than the basic income tax rate, it is possible you could claim additional tax relief through your self-assessment tax return. Another good deal.

But where does your money go if you choose to take advantage of either an ISA or a pension – or both – with Coutts Invest? How are the relevant funds positioned? Here is a closer look at what you are investing in...

You choose from one of five funds

You put your money to work into one or more of our five Personal Portfolio Funds (PPF). Each one has its own risk profile and is conveniently named to reflect its underlying approach – Defensive, Cautious, Balanced, Ambitious and Adventurous.

So whether you want to be bold and accept greater risk for the chance of greater reward, or take a more conservative approach, there should be a fund for you.

they are a COMBINATION of index trackers 

The chief way the funds gain exposure to markets is through ‘index tracker’ funds. They invest in baskets of assets which move in line with the relevant indices, such as the S&P 500.

The funds represent a buy and hold approach. The underlying assets are pretty much fixed and there isn’t a lot of fast-paced buying and selling. That can make them a powerful way to access markets without paying high fees.

Our investment experts keep track of what is going on in world markets and adjust how much of your money is invested between these index trackers, depending on where they see the best opportunities. 

THEY INVEST IN THREE KEY AREAS

The Personal Portfolio Funds are focused on investing in three key asset classes:

  • Stocks – shares in companies quoted on stock markets worldwide, including in the US, UK, Europe, Japan and the emerging markets.
  • Bonds – these include government bonds, corporate bonds and emerging market debt, which all carry different levels of risk.
  • Cash – includes overnight deposits and short-dated money market investments. We hold cash to make it easier to buy into funds quickly and reduce risk where appropriate.

GET STARTED WITH COUTTS INVEST

See more detail about THE PERSONAL PORTFOLIO FUNDS

Coutts Invest is available to clients who are:

  • UK resident and domiciled for tax purposes
  • Aged 18 or over
  • Already a user of Coutts Online
  • Have a minimum of five years to invest

If you’re over 74, or are UK resident but non-domiciled for tax purposes, speak to your private banker who will be able to organise access for you.

Eligibility criteria, advice and product fees may apply. When transferring a pension, exit fees may apply.

The value of your investment can go down as well as up, and you may get back less than you invest. You should continue to hold cash for any short-term needs.

Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances. As we do not provide tax advice, you should seek independent tax advice as required.

The information on this page should not be regarded as financial advice.

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