Stocks and Shares ISA


(Matt) #121

That’s really well worded - as long as there is no accountability for poor performance, then I guess it’s just a wash, rinse, repeat situation regardless of whether the fund did well or tanked :anguished:


(Jamie Penman-Smithson) #122

Not wanting to pour petrol on any fires :fire:

However, there’s not much discussion of Investment Trusts, which, while usually actively managed, tend to have lower fees than funds.

In addition, trusts can get access to unlisted private companies at early stages which individual investors can’t (unless they’re employees).

SMT is a one example of a (relatively) low cost trust with a concentrated portfolio and little churn.

I also hold trackers but not solely…

The other issue is that passive tracker funds are bound to buy/sell based on the index, so if they want to raise concerns about the management of the company or pay the top they can’t really make much noise because they have no choice in holding those shares.

There is some discussion of that on the FT:
https://www.ft.com/content/15dd3552-3fad-11e7-82b6-896b95f30f58

Disclosure: I hold SMT (as does everyone with a FTSE100 tracker)


#123

Not many comments on this one now, but may be interesting to see people’s answers.


(Sajid Sabir) #124

According to the investment proposal from the current funding round, Monzo has been successful in its application to offer Cash ISA and Stocks & Shares ISA, therefore it will be interesting to see how they go about offering these. I hope they develop their own offering, I’m finding they are starting to partner with other platforms and it seems to be getting very messy in terms of having to download the partners apps etc. Tail being one example which I find useless since it only focuses on those living in London and not elsewhere in the UK.


(Tom Halloran) #125

Good spot. I’m curious to see to see how Monzo approach this too.

Partnering with other companies has always been Monzo’s long-term vision - acting like a central point that allows users to access all sorts of other services very easily. It has the benefit that Monzo can offer the best options to customers from across the whole market, rather than just what they can offer in house.

You’re right the user experience is tricky but personally I think its perfectly possible to do this well if you take enough care with the design. Sonos is a good example, which seamlessly integrates Spotify, audible, radio, podcasts etc


(Sajid Sabir) #126

The problem you have when having too many features where you’ve partners with a third-party is that as Monzo customer numbers using the third-party service increase it becomes more sticky, which increases the risk of the third-party provider to force changes such as increased prices. For international payments Monzo has partnered with Transferwise, first of all I feel Revolut is cheaper for transering money overseas but the key point as above if Transferwise increases its prices then Monzo have no control. I feel in the long term Monzo should be able to build it’s own overseas transfer feature which can be cheaper than or on par with Revolut or Transferwise costs.

It also means Monzo has no control over technical issues with third-party providers.


(Sajid Sabir) #127

For a better user experience Monzo teams need to work closely with partners and build bespoke interface which is in line with Monzo’s interface theme, a bit like a white label for Monzo only.


(Tom Halloran) #128

Exactly. And I’m sure this is what they will do

True, but this happens all the time in other contexts - when you pay for something in Tesco they are relying on the card machine, the visa network, the bank etc all to be working smoothly. Monzo should be able to set high enough standards and have the weight of customers behind them to make sure providers offer a reliable service

Arguably you’re better off having Monzo negotiating on your behalf with 1m other customers behind them than on your own with a big provider


(Excited about Christmas) #129

I am very impressed with the Investec integration, and I’m sure the Crowdcube one will work just as well.


#130

This was good reading: