Clubfinance now part of WealthClub

[Karellan]

Does anyone know much about WealthClub ?

https://www.wealthclub.co.uk/

[bnmlp]

Having been a Clubfinance client for a long time, my observation is:
Wealthclub never seemed to better the initial discount on VCTs and certainly didn't have an annual rebate element compared to CF.
WC have just introduced a sparse and meagre annual rebate on the minority of VCTs.

Since CF had excellent service don't expect an improvement here. The guys at WF have the experience and clearly have invested in a great interactive web platform. However, the investors will be the ones paying for this unless they increase the CF annual rebates.
Maybe others will come in to provide much needed competition.

Strange the email didn't address the main concern - will we still get the accrued annual rebates?
Cheers bnmlp

[wealthclub]

Hello all - just registered here in order to answer bnlmp’s question about the rebates.

Please rest assured the terms on all existing Clubfinance investments have remained unchanged.

Rebate cheques are scheduled to be posted as usual, i.e. on 31 January.

Any new VCT, EIS, SEIS or IHT investments will be through Wealth Club and will be subject to the current terms detailed on our website.

If you need anything further, please do not hesitate to get in touch - see wealthclub.co.uk/contact-us or clubfinance.co.uk/contact-us for email and phone numbers.

[naflod]

Hello all - just registered here in order to answer bnlmp’s question about the rebates.

Thank you to Wealth Club for registering to answer bnlmp's questions which I'm sure many of us share.

I am glad to see that our existing trail rebates won't be affected and this year's will be with us, as planned, at the end of the month.

naflod

[UncleEbenezer]

Bang on cue, junkmail this morning because I am a Clubfinance client.

A very oldfashioned way for wealth club to seek to exploit clubfinance assets. I was hoping they might bring some new service that I (as opposed to my recycling bin) might take an interest in, but they've now killed off my enthusiasm for looking.

[SunnySonny1]

Having visited the WealthClub website, I agree with the observation made by some of you that WC seems to be inferior, in terms of initial discount and annual rebate, when compared with the old Clubfinance and other discount brokers. For example, the initial charge and annual rebate for Maven are 1.25% and 0.1% with WC; on the Cavendish on line site, the figures are 1.25% (1% for existing shareholders) and 0.5% (minus £10 admin fees).

Prior to the takeover by WC, I had been getting the forms ready to apply through CF and I guess now I have to move my business elsewhere. If you know there are other competitive discount brokers, please share.

[Kidman]

If you know there are other competitive discount brokers, please share.

One has to wonder what the reasons were for the takeover.
Looking at Companies House filings, I note that the two ex-directors of Clubfinance as of 9 January, Roden and Scrivens, were born in 1970 and 1975. I therefore assume that they didn't want to retire due to old age! Perhaps they found it more difficult to run a profitable business with all the increase in legislation such as MIFID 2 this month? If that is so then others will also be suffering so we can expect more consolidation and fewer discounts.

I too received by Wealth Club (WC) pack in the post today and found it interesting. One benefit I see in WC is the ability to make online VCT applications in certain cases.

[CrackAddick]

Prior to the takeover by WC, I had been getting the forms ready to apply through CF and I guess now I have to move my business elsewhere. If you know there are other competitive discount brokers, please share.

III in theory offer a 100% rebate of Annual Trail commission.

However, whoever updates the III website clearly has no idea about VCTs and they generally don't seem to put the correct fee information onto their web site.

Getting back to WC, I'd looked at using them previously, as the ability to apply online was clearly appealing. But as mentioned previously, they previously didn't rebate the trail commission and even though they have now started to, it's a pittance and not on all of the current offers.

In respect to the Newsletter they have just sent existing Clubfinance clients, while I too found the information useful. The fact that they hardly ever mentioned the fees involved with the various offers they were advertising seemed frankly unprofessional.

[Karellan]

They must be keen as one of them telephoned me on my mobile which I rarely ever switch on but he sounded very bright on the voicemail. I will contemplate and probably forget to respond.

I too found the WC literature good , informative etc. I did not really notice any lack of mention of fees but I was not looking. I would like to see a company like the old Bestinvest of 20 years ago that had lots of fact and figures about the VCT/EIC/SEIS markets. I always feel greatly indebted to them but one appreciates that it was probably not quite what the marketing department wanted. I would be pleased if WC provide good support in that direction.

I would like also to thank the old Clubfinance firm. I think that they were the lean mean new kids on the block some while ago. They ran a tight ship and provided a customer service that was very good and they went the extra mile. The people at the sharp end knew what you were talking about and didnt want an arm and a leg to do it. I put all of my business their way happily. I guess that messrs Scrivens and Roden (both approachable and helpful) built their team , I suspect that they had others , and they did a good job.

[parallellines]

III in theory offer a 100% rebate of Annual Trail commission.

Cavendish might be worth a look. I've used them for some investments, but no experience of their VCT service.

https://www.cavendishonline.co.uk/inves ... ucts/vcts/

[Vulgaris]

When WealthClub started up they sent me a couple of pitches and I either blocked or unsubscribed (I don't recall which) as (i) I hadn't sought them directly, (ii) they were too glossy/hyped - which implies a heavy advertising budget and (iii) I viscerally - and maybe unfairly - I distrust anyone who gives themselves a name that seeks to appeal simultaneously to greed and snobbery. I stuck with Bestinvest and ChelseaFS for VCT purchases, intending to register with Club Finance for the trail rebate, but never getting around to it.

Now, a friend who was with ClubFinance, using them for VCT purchases, has had a pitch from WealthClub for an EIS minimum purchase £10949..... It may be quite a good prospect...... but absolutely nothing to stress that buying a single EIS issue is significantly higher risk than the VCTs he'd been buying previously. This is quite different to the EIS risk paperwork that I've had to fill out for e.g. Guinness (even for EIS funds, rather than single share issues), or to register with Seedrs.

WC continue to induce wariness in me....

[127tolmers]

Latest news from Wealth Club

How to get VCT tax relief without investing any new money

Are you considering investing in VCTs but have all your cash tied up elsewhere?

Now you can invest in Octopus Titan VCT using existing money you hold in an ISA. So you could get up to 30% VCT tax relief without parting with any new money.

For every £10,000 you transfer from your existing ISA into the Octopus Titan VCT ISA, you could receive an income tax rebate of up to £3,000.

Please note tax rules can change and benefits depend on circumstances.

Currently Octopus Titan is the only VCT to offer this facility. In my opinion this, coupled with the VCT’s track record and potential, creates a compelling opportunity.

[BusyBumbleBee]

Latest news from Wealth Club

How to get VCT tax relief without investing any new money

Are you considering investing in VCTs but have all your cash tied up elsewhere?

Now you can invest in Octopus Titan VCT using existing money you hold in an ISA. So you could get up to 30% VCT tax relief without parting with any new money.

For every £10,000 you transfer from your existing ISA into the Octopus Titan VCT ISA, you could receive an income tax rebate of up to £3,000.

Please note tax rules can change and benefits depend on circumstances.

Currently Octopus Titan is the only VCT to offer this facility. In my opinion this, coupled with the VCT’s track record and potential, creates a compelling opportunity.

But surely you can do this anyway? with any ISA and any VCT. Trouble is you cannot put the money back into an ISA.

[Vulgaris]

There's another thread on the Titan ISA/VCT nexus

https://www.lemonfool.co.uk/viewtopic.php?f=25&t=8577

I think it's fair to say that the general conclusion was that it might have some merit for someone with funds in an ISA but nowhere else; but that such a soul should think carefully about whether they should be converting any substantial part their ISA to VCT shares

Why am I not surprised that Wealth Club differ, calling it a 'Compelling opportunity'?

I also see that Titan have increased their offer from £120m to £200m

[UncleEbenezer]

Rebate cheque in today's post - thanks (so that function has transferred smoothly).

Covering letter now bears both Clubfinance and Wealthclub logos. Now I just have to Not Lose It before I can start a 2017-8 tax return on HMRC's website.

[Cookie]

Rebate cheque in today's post - thanks (so that function has transferred smoothly).

Covering letter now bears both Clubfinance and Wealthclub logos. Now I just have to Not Lose It before I can start a 2017-8 tax return on HMRC's website.

Is this not like cashback and an incentive to invest and therefore not taxable?

Where do you put it on your tax return if is taxable?

[UncleEbenezer]

Rebate cheque in today's post - thanks (so that function has transferred smoothly).

Covering letter now bears both Clubfinance and Wealthclub logos. Now I just have to Not Lose It before I can start a 2017-8 tax return on HMRC's website.

Is this not like cashback and an incentive to invest and therefore not taxable?

Where do you put it on your tax return if is taxable?

The letter explains that. It goes under Other UK Income.

Since clubfinance pay the rebate net of basic rate tax, the effect on your bottom line could go either way.

[Kidman]

Is this not like cashback and an incentive to invest and therefore not taxable?

The rules changed from the 2013-2014 financial year, following RDR, see for example:-
https://www.icaew.com/technical/tax/tax-faculty/taxline/taxline-articles-2014/2014-09-tax-treatment-of-commission-rebates

[127tolmers]

WealthClub had an interesting 2nd hand cargo ship asset backed EIS offer in their recent magazine. By keeping charters below 355 days it apparently still passes the EIS approval process (? for the last time). Any budding shipowners out there with views?

[Kidman]

WealthClub had an interesting 2nd hand cargo ship asset backed EIS offer in their recent magazine. By keeping charters below 355 days it apparently still passes the EIS approval process (? for the last time). Any budding shipowners out there with views?

I invested in a very similar BES issue some decades ago. The freight rates went down, the value of the secondhand ships went down and in the end we got some money back but less than invested. If my memory is correct the company was Short Sea Europe plc. A search for similar companies reveals losses at Bromley Shipping and Edinburgh Tankers.