GENERAL INVESTMENT ACCOUNT (GIA)

A General Investment Account (GIA) invests directly without a tax wrapper. You must be over 18 years of age. Our SCM Direct minimum investment level is £10,000, for UK residents with a UK bank or building society account.

For clients that are not resident in the UK, the minimum investment is £100,000 or the Euro or US Dollar equivalent. For institutional investors such as family offices, charities, corporates, and trusts, the minimum investment is £100,000.

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The SCM Direct GIA

What is a GIA?

A General Investment Account (GIA) is a simple and flexible way to invest your money. There are no limitations to the amount you can invest or contribute. Once an account is opened, investors can make monthly contributions from £50 per month.

It is also possible to invest in either Euro or USD denominated portfolio’s.

The USD $ portfolio will normally have a bias to USD $ denominated markets e.g. US equities and bonds. These will all be NYSE (New York Stock Exchange) listed ETFs.

The EUR € portfolio will normally have a bias to € denominated markets e.g. European equities and bonds. These will all be ETFs listed on a European Stock Exchange.

SCM Direct 100% Transparent Fees

Unlike many of our competitors, we believe in showing all the costs including the hidden dealing related costs and then add these costs together.

  • ANNUAL MANAGEMENT CHARGE 0.40% + VAT = 0.48% p.a.
  • Custody & Administration Fee 0.12% p.a.
  • Typical Underlying ETF cost 0.28% p.a.
  • Typical Trading costs 0.09% p.a.
  • Estimated Transaction Costs Within ETFs 0.08%

 

  • Typical TOTAL COST of INVESTING 1.05% p.a.

 

Fees will vary according to the current selection of ETFs and current levels of trading activity, latest fees shown in all monthly factsheets. The figures above are based on the average fees and charges, weighted by the amount invested within each of the SCM GBP Portfolios as at 31st December 2017. When investing via the Hubwise SIPP, an additional charge is made of 0.1%+VAT subject to a minimum annual charge of £15+VAT and a maximum annual charge of £50+VAT. An additional fee of £125 +VAT applies to any SIPP that is in drawdown. Other fees for work in relation to for commercial property, divorce & death for example are available on request and will be quoted to you before any work is carried out.

How do I open a GIA?

Due to our technology efficiencies, you can open on account online in just 10 minutes. Simply fill out the online application here, and you’re on your way to financially securing your future.

There is an initial £10,000 minimum investment level for the GBP Portfolio which applies to UK investors, over the age of 18, living in the UK with a UK bank or building society account.

The minimum initial investment for people who either live or bank, or both, outside the UK are:

  • £100,000 if investing in one of the GBP £ portfolios
  • €100,000 if investing in one of the EUR € portfolios
  • $100,000 if investing in one of the USD $ portfolios

If you unsure about any aspect of a GIA or have any questions, please feel free to email us at enquiries@scmdirect.com

How Do I Transfer a GIA?

Transferring your existing GIA account from another provider to SCM Direct is easy. Simply fill out the online application (found here) and enter the details from your current fund manager.

You can either transfer the full amount or a partial amount from your existing GIA.

What is an ETF?

ETF stands for Exchange Traded Fund. These products trade throughout the business day on stock exchanges like individual company shares. The ETFs within the GBP portfolios are all UCITS IV regulated thereby providing investors with a high level of regulatory protection.

ETFs track the performance of their benchmark index, thus the performance of a FTSE 100 ETF for example, will normally closely follow the performance of the underlying FTSE 100 benchmark index, less its fees. In contrast, a mutual (non-index) fund often invests in a much more concentrated range of securities resulting in its performance often being markedly different (either positively or negatively) to its benchmark.

The main advantages of ETFs over many traditional ‘active’ mutual funds is that they can be traded on a stock exchange throughout the business day rather than just once a day, they tend to charge significantly lower fees, trade their underlying holdings much less thereby saving trading costs, tend to be much more diversified and are normally much more transparent as they normally disclose all their holdings daily.

Who are Hubwise?

SCM Direct does not hold and is not allowed to hold, any client money. Hubwise Securities Limited holds client money prior to it being invested on the next dealing date.

Hubwise Securities Limited, as part of the custodial relationship with all SCM Direct clients, is responsible for holding all assets (including ETFs) on your behalf.

Hubwise Securities Limited is authorised and regulated by the Financial Conduct Authority – Registration Number 502619. It has permission to hold client money and t

Start your GIA

Start the online investment process here to create a new investment account

Start today
Transfer your GIA

Transfer your current General Investment Account to SCM Direct here.

Transfer today

If you are a family office, charity or institutional investor,
please contact us directly

Frequently Asked Questions

Can I use your services if I am not a UK resident or do not bank in the UK?

Yes, as long as you are not a US citizen or resident in the US or have an obligation to pay tax to the US authorities on any of your worldwide income.
We will have to conduct thorough due diligence and money laundering checks, which would require you to send us documentation prior to investment. There is no guarantee that the very strict rules by which we operate will allow us to accept your investment.

 

The minimum initial investment for those outside the UK or who bank outside the UK are:

 

  • £100,000 if investing in one of the GBP £ portfolios
  • $100,000 if investing in one of the USD $ portfolios
  • €100,000 if investing in one of the EUR € portfolios

ISAs or SIPPs are not available outside the UK.

 

Please contact us at enquiries@scmdirect.com if you require further information.

Can my investment lose money?

Yes. Nothing is guaranteed and markets and the income derived from investing can (and often do) go down as well as up. This is why we always recommend that you take at least a 5-year time horizon when investing, so you can ride the highs and lows without being forced to panic and sell at precisely the wrong time.

 
Our portfolios offer extensive diversification, which can reduce the overall volatility and downside associated with narrow, concentrated funds or portfolios.

Do I really need to diversify my investments?

It depends. Of course if you are looking to make huge returns, it is very unlikely you will ever achieve this through high levels of diversification but in the same way, high levels of diversification can help reduce economic and market shocks. In the famous story about the Tortoise and the Hare, the Tortoise wins the race even though the Hare got off to a great start! We are happy to be the Tortoise.

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