An easy to understand, straightforward & personalised service
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How it works
1 Investment Process
We believe in the value of direct investment
2 Signing up as a client
Becoming an Intrinsic client is easy
3 Ongoing Relationship
Managing your expectations and keeping you in touch
1 Investment Process
We believe in the value of direct investment. We offer personalised investment service across a range of different strategies accessed through separately managed accounts for individuals, trusts, corporates and incorporating tax efficient wrappers as appropriate.
The Investment Process
- Basic strategies are designed to accommodate those with lower, medium and higher risk tolerances. Each investment strategy is based on a careful and thoughtful selection of direct investment in publicly listed stocks in developed market venues.
- We are risk averse and we seek to protect capital and income in real terms while delivering an optimal return. Typically, in the current environment, we will screen for long term fundamental attraction in, for example, cash, cash flow, return on equity, dividends, track record before a technical analysis to inform short term timing and finally a common sense review of valuation.
- The fundamental challenge facing investors today is how to construct portfolios that can grow after inflation and taxes when interest rates are so low. Since 2008 public policy has been to maintain punitively low interest rates that result in a steady transfer of real, inflation-adjusted wealth from savers to borrowers. An entire asset class, fixed income, has been rendered unattractive because of the Bank of England policy of near zero short term interest rates and Quantitative Easing which suppresses bond yields. Regardless of whether these policies turn out to be enlightened or damaging, investors seeking to preserve the purchasing power of their portfolios cannot rely on bonds to be part of the solution.
- At Intrinsic Capital, we believe that long term success comes from providing thoughtful investment solutions that are accessible, fairly priced and maintain an alignment of interests. So that is what we do. We run long-only strategies. We believe our patient, value-driven investment approach gives us a comparative advantage over the long term. You have complete transparency in what you are invested in and in how much you are being charged.
- Because there is no ‘fund’, each client has their own account in their own name, meaning beneficial ownership of the underlying investments and seeing exactly how your money is invested with continual access provided through secure log in via multiple devices including your smart phone or tablet. It is your money and there are no gates, lock ups or exit penalties.
- We are in uncharted territory from an economic view point. Markets are increasingly global, levels of debt are unprecedented and volatility and uncertainty are increasingly prevalent. We have seen exponential growth in passive funds predicated on ultra-low fees – but these funds merely track, in the main, the consensus of what everyone else is doing. They are incapable of discriminating good from bad for themselves and there are risks involved in their approach which we believe are understated.
- Even active funds are finding short term flows much more volatile helped by ease of trading via various platforms. Big winners and big losers are largely determined by a combination of recent performance and relative size of marketing budgets. And, being open ended, there are additional risks – and potentially more costs – as money flows in and out. And transparency isn’t great either.
- In summary, Intrinsic Capital was conceived to offer clients personalised investment strategies based on an objective assessment of risk tolerance in a way that delivers transparency, liquidity and access with thoughtful investment process.
2 Signing Up
We are very much process driven with a focus on adding value in the context of your individual circumstance. It is vital that we understand not just your needs and requirements but also your attitude to risk and your ability to take risk in order to determine suitability of different investment strategies.
We can do this for you directly or it can be done with your Financial Adviser
- We ask you to complete a questionnaire which provides an objective assessment of your attitude to risk.
- You will be asked to fill in a Client Investment Profile document that will seek to understand your investment requirements and also your capacity for loss both in income and capital.
- We will then look to match your requirements with your assessed risk profile and your capacity for loss in arriving at an agreed investment strategy.
- You will then be asked to complete an application form which might also include wrappers for ISA and SIPP as required.
- Your account is then available for funding and we can also accept instructions from you to transfer existing portfolios including ISAs and SIPPs.
- We will manage the transfer process for you and you can elect for this in specie where you wish to retain all or part of the existing portfolio or where there are specific constraints.
- We will summarise everything we have agreed in a formal Agreement Letter and this will be held securely for you in your document file within the Intrinsic On-line portal
- You can follow and access all you investment accounts with us via a secure log in to the Intrinsic On-line portal and you can also instruct us to provide this facility to your Financial Adviser.
3 Ongoing relationship
It is important to us that we manage your expectations effectively and that we communicate with you accordingly on an ongoing basis.
Ongoing Relationship
- You will have access 24/7 to all of your current portfolios via the Intrinsic On-line secure portal.
- While we expect that many of the stocks in your portfolio will be well known names, we also provide you with a single page high level note on each company which will also briefly summarise the investment case.
- We produce formal reports with an investment summary at least twice a year and this will also include a tax pack with all the information you will require for your tax return.
- We encourage ongoing communication and, in particular, we encourage you to keep us informed of any changes to your circumstances that might affect your investment strategy or requirements
- We also provide, with your permission, for access for your Financial Adviser to our secure on-line portal so that they are fully informed at all times.
