ISA Information

It's ISA Time Again!

With the financial year fast approaching, it's time to think about how best to utilise any of this year's unused ISA allowance, and plan for next year's allocation.

As many of our exisitng clients already know, AAC's portfolio modelling system has seen clients investments prosper, even in these tough economic times.
Although these portfolios are available, clients have the option to purchase funds direct through our investment platform at discounted prices.
Below are some top performing examples of the diverse range of funds available to our clients.

 

	Fund Name	3 Month	YTD	1 Year	3  Year	5  Year
B2PMBY	Fidelity Indonesia Y-Acc-USD	6.86	8.86	15.07	319.87	NA
B1VQBP	BNPP L1 Equity Indonesia CD	7.36	10.02	12.80	312.09	NA
433697	Fidelity Indonesia A-USD	6.64	8.77	14.15	309.88	136.45
B3P466	Allianz RCM Indonesia A	6.03	7.58	10.22	303.59	97.06
B1XF3H	BSF Latin America Opportunities A2 USD	1.32	17.67	-12.46	278.70	NA
B2NFSQ	Pictet-Russia Equities-P dy USD	5.33	23.49	-23.07	278.41	NA
B2NFSP	Pictet-Russia Equities-P USD	5.33	23.50	-23.08	278.39	NA
088827	Allianz RCM Thailand A USD	16.00	11.49	17.46	272.90	103.84
B1XF3M	BSF Latin American Opportunities A2 EUR	14.18	15.45	-4.07	272.89	NA
B2NFSR	Pictet Russian Equities-R-USD	5.13	23.39	-23.62	270.91	NA

 

These types of products also have a low charging structure with no annual management charges etc.

Don't put up with low cash rates and take control of your savings! Call 0141 331 2434 to transfer today!

---

 

How much can you put in?

Your annual ISA allowance in the 2011-2012 tax year is £10,680. You can put the entire amount into a stocks and shares ISA. Alternatively, you can split it and put up to 50% - £5,340 - in a cash ISA. Remember though, the total you can invest this year is £10,680, so if you put more than £5,340 in a stocks and shares ISA, it will reduce the maximun you can put in cash. For example, if you invest £7,000 in stocks and shares, you'll only be able to put £3,680 into a cash isa.

 

What are the advantages?

Any money held within an ISA is free of income and capital gains tax (CGT). So a stocks and shares ISA can generate significant tax benefits once you have built up a substantial holding of investments.
Over the long term, equties tend to outperform cash and bonds, so the fact that a stocks and shares ISA enables you yo invest in the stock market in a tax efficient way gives you the opportunitu to maximise potential returns on your money. However, the performance of shares and bonds varies significantly so a lot will depend on where your money is invested.
There are no restrictions on changing your investments within a stocks and shares ISA. Remember though, once you have invested your money into a stocks and shares ISA, you cannot move it to a cash isa.

 

What are the disadvantages?

The value of your investments can fall as well as rise, so there is more risk attached with a stocks and shares ISA than there is with a cash ISA.
ISA rules allow savers to move money held in a cash ISA into a stocks and shares ISA without restriction, but this does not work in reverse: you cannot move money from a stocks and shares ISA into a cash ISA without losing your tax advantages.

 

Who do they suit?

Provided you are happy to take the risk of investing in funds, shares or bonds, a stocks and shares ISA can offer substantial tax benefits in the long term. However, because of the risk associated, advisers tend to recommend you stick with cash if you are investing for less than 5 years.
ISA's can be a good way of saving for retirement and other long term goals such as university fees. If you use your ISA allowance every year you can build a significant investment portfolio. The aim is to diversify and invest in different types of funds so you have exposure to other stock markets, as well as the UK's, and even different asset classes - as well as company shares you can invest in bonds, commodities such as gold and commercial property. Diversification also helps to spread the risk, as you are not dependent on the performance of one company or fund.

 

 

 

REMEMBER: Earn funding for your chosen sports club or nominated charity by using our support the community pledge. For every transaction you conduct through AAC, we donate 10% of our fee to your nominated beneficiary. For example, a £10,680 ISA purchase would earn your club or charity £43.00.