Managed Income Portfolio

How about a managed Income Portfolio that is dividend based rather than just the Bond based one?

Or factor based Managed Portfolios.
e.g Value, Growth, momentum etc…

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In Income Portfolios, on InvestEngine, a customer invests in securities, mainly bonds, and receives dividends from it.

Bonds pay interest, not dividends. It matters (at least in the UK) because dividends and interest are taxed differently with their own personal allowances.

But Bonds have not done well this year.
Bonds return a coupon (interest) and as I understand it are a low risk investment that offer “ballast” to a mixed asset portfolio.
Who has done the managed income portfolio?
And how has it done?

Hi @JKlopp - I will feed this back to our investment team.

We have to be careful commenting back on anything investment-wise (can’t be seen as giving advice) but if I can share some of their views back on a dividend/equity-based income portfolio I will.

I have noticed the trend of ‘awaiting settlement’ and general inactivity concerning my managed portfolio. I hold a modest investment using my ISA option. Following my initial deposit I have added further funds. However, my deposit has not been acted upon. When I queried this I received a reply. I’ll list the query and IE response below.

I am curious when my top up will be invested. I notice there are also unsettled purchases. Mine is a managed portfolio. Can you please explain. Please note, this is in no way a complaint. It seems there is no recent activity.

Thank you for contacting InvestEngine.
In a managed portfolio, funds get invested into the next trading window automatically.

We only rebalance when is necessary to keep the weightings of the security in line with the portfolio model risk level. on a Managed portfolio usually rebalance 4 times a year (once a quarter)

Please let us know if you have any other questions.

Best wishes,

Does this mean my cash will be dormant for potentially 90 days? If I knew when the funds would be invested I could keep them in an interest paying personal account and transfer when they’ll be quickly actioned. I’m quite confused by this. Going off topic now, I’m also concerned as to the wisdom of bulking my managed investment in Bonds rather than dividend paying Equities. Is this wise given the current inflation risk here and in the US. Back on topic. I’d like to invest regularly but I don’t see the point given what I’ve experienced so for.

Is this normal and is anyone else experiencing this?

Whenever I’ve added cash to my Managed Income Portfolio it has been invested within a couple of days. I don’t think I had to do anything extra.

Hi Rishi, thanks for your reply. I have a managed ISA. There is no Invest button or user actionable command displayed. The cash, along with a small sum commonly left after an initial investment, is just sitting there. It’s earning nothing for me. Maybe IE is getting the basic interest on this but I’m not. I am putting this down to IE being overwhelmed and are dealing with the big investors first. What do you think of their reply. Sounds very peculiar to me.

Hi MikeZ, thanks for your reply. I am pleased it’s working for you. I am now a touch happier that it appears I have done nothing wrong.

Apologies as my information was incorrect. Have deleted it. Hopefully IE will action this for you ASAP as I can certainly understand wanting your cash invested. I’ve always found support very helpful. Good luck :+1:t3:

Thanks Rishi, I hope they monitor this forum. The reply I received was from their Customer services. I really don’t understand their actions concerning my dormant funds. If I really have to wait 90 days then this platform is not for me. Better off in a cash ISA, at least I’d be getting something for my investment.

Thanks for flagging this.
Let me clarify a couple of points regarding our managed portfolio;

  • Funds added to managed portfolios will be invested in the next trading window. So as long as you’re topping up from your nominated bank account, funds added before 2 pm should be invested the same day.*

  • Managed funds are typically rebalanced once a quarter. Our investment team sets out a strategy and asset allocation (i.e. which ETFs to invest in and their %) to achieve the risk-return profile for each portfolio. They monitor performance and risks continuously but, all things being equal, they will typically look trad

  • Managed portfolios keep a small % in cash (typically ~1%). This is standard practice with managed investments portfolios for management, taking fees and ensuring we’re not making lots of small, expensive trades. The is also a max cash % (typically ~1.5%) should the cash in the portfolio exceed the max % it will trigger buy trades in the portfolio.

*There can be an exception here with small top ups. If the cash % in the portfolio is already low and you top up but the cash % still remains below the max cash % set for the portfolio. This typically also happens with the reinvestment of dividends, we won’t trade every time you receive a dividend but once we’re above the max cash % it will trigger a trade.

@mph451 - Hopefully the above helps clarify things. There shouldn’t be any significant*‘ awaiting settlement’* delays with our managed portfolios. All the ETFs are well traded/liquid.

Tom many thanks for this I had previously been trying to get an answer to the cash sat in my managed fund, why I can’t invest it, transfer, withdraw without triggering a trade. I did receive timely responses but couldn’t get a definitive answer after a number of messages. The cash represents just over 1% however, I clearly see following your explanation that this percentage of cash is normally retained in a managed fund. Unfortunately, I did try to transfer the cash amount to my DIY portfolio which did trigger a trade and after this was completed it still left the same amount of cash in the managed fund. I understand the reasoning for this now.

As of 12:36 today, no change noted since the outset of my enquiry. 54% cash balance and 2 unsettled trades from 18/08/2022. I really don’t know what to think here

As of today at 09:50 hrs, no change except for a fee of 1p for the period 22/08 - 01/09/2022. 54% cash uninvested with 2 unsettled transactions.

@mph451 - Let me look at your case directly. I’ll DM for detail and link up with our support team.

Received a message at 5:20 am today saying all was fixed. Sadly, there has been no change. I’ve raised a further support ticket on this and apart from an auto acknowledgement there has been no response. 54% cash uninvested and 2 transactions awaiting settlement since 18/08/2022. My confidence in the fixing of this issue is at an all time low.

@mph451 apologies, I was assured this had been fixed.
I’ll get to the bottom of what happened here and provide an update

Update: all cash now invested but £180+ awaiting settlement. Can take T+2 to settle so let’s see. Tom and team, many thanks for your efforts.