Why InvestEngine

Smarter returns with lower fees

Portfolio construction. We build so that you benefit.

When you’ve got InvestEngine driving your investments, you can be confident there’s some serious power working on your behalf. Our team, approach, technology and low fees are geared to making your money work harder to deliver smarter returns, whatever your risk profile. And of course, we will always protect your money and your data.

Individual investor

InvestEngine algorithms

Personal portfolio

We construct robust, globally-diversified portfolios using a carefully selected blend of ETFs tailored to different risk appetites. The portfolio you receive from InvestEngine is determined by your personal situation – your goals, investor profile, time frame and tolerance of risk. Composed of stocks, bonds and alternatives, the weight of each asset class in your portfolio depends on whether you favour a conservative, moderate or aggressive strategy.

Conservative

Moderate

Aggressive

Stocks

Bonds

Alternatives

ETFs. The blocks we build with.

What happens when the stock pickers pick the wrong stocks? You lose money. And you pay heavily for the privilege in the fees and costs associated with stock picking. That’s why we use exchange-traded funds, known as ETFs. ETFs track anything from stock market indices to entire sectors, commodities, currencies and bond markets. Each ETF is made up of the multiple elements that make up a particular index. For example, a FTSE100 ETF includes the companies that make up the top echelon of the FTSE. Hence ETFs deliver instant diversification. The skill lies in how we select a blend of ETFs that matches your risk profile and avoids the danger of investing too much in any one asset class, industry, company or country. Furthermore, ETFs have far lower costs and fees – so your money works harder and you keep more of the gains you make.

Diversification. Think Eggs. And baskets.

We believe diversification is the single most important factor in making your investments work harder. No single asset class performs best in all economic environments and different asset classes react differently to the same event. So we invest in indices around the world and across asset types – stocks, bonds and alternatives. That way you’re protected if one element of the mix falls and you’re able to harvest the gains where and when prices rise. It’s all about making sure those nest eggs aren’t all in one basket.

DiversificationNo diversification0Risk

Asset classGeographical

Conservative portfolio

Moderate portfolio

Aggressive portfolio

Stocks 25%

iShares FTSE 250 ETF

iShares Emerging Markets Dividends ETF

Vanguard FTSE Developed Europe ex-UK ETF

iShares Asia Pacific Dividends ETF

Vanguard FTSE 100 ETF

HSBC S&P 500 ETF

Bonds 70%

Vanguard UK Gilts ETF

SPDR Sterling Corporate Bonds ETF

Alternatives 5%

iShares Physical Gold ETC

Stocks 55%

iShares FTSE 250 ETF

iShares Emerging Markets Dividends ETF

Vanguard FTSE Developed Europe ex-UK ETF

iShares Asia Pacific Dividends ETF

Vanguard FTSE 100 ETF

HSBC S&P 500 ETF

Bonds 40%

SPDR Sterling Corporate Bonds ETF

Vanguard UK Gilts ETF

Alternatives 5%

iShares Physical Gold ETC

Stocks 80%

iShares Emerging Markets Dividends ETF

Vanguard FTSE Developed Europe ex-UK ETF

iShares FTSE 250 ETF

iShares Asia Pacific Dividends ETF

HSBC S&P 500 ETF

Vanguard FTSE 100 ETF

Bonds 15%

Vanguard UK Gilts ETF

SPDR Sterling Corporate Bonds ETF

Alternatives 5%

iShares Physical Gold ETC

Conservative portfolio

Moderate portfolio

Aggressive portfolio

United Kingdom60.5%
North America17.7%
Europe14.2%
Asia6.5%
South America0.7%
Africa0.1%

United Kingdom52.6%
North America28.1%
Europe10.1%
Asia8.3%
South America0.5%
Africa0.1%

United Kingdom63.1%
North America17%
Europe8.5%
Asia10.6%
South America0.4%
Africa0.1%

Modern Portfolio Theory. The technical approach to doing what’s sensible.

ReturnRisk

We follow the principles of Modern Portfolio Theory. The basic idea is simple – manage volatility (because that’s risky) in order to optimise returns (because that’s what we all want). It’s done by diversifying into a broad range of investments that won’t have wild swings in value but do have a track-record of good returns. Of course, there’s a lot of work to do to achieve the precisely calibrated balance of risk and reward that ensures your investments perform to their optimal level. But that’s what we’re here for.

Passive investing. Beware overactivity.

Passive investing – also known as buy and hold – involves holding investments over an extended period to maximise long-term returns by keeping buying and selling to a minimum. A passive investment strategy is based on set principles that align with your investment goals and risk appetite. This takes the emotion out of investing – and hence your vulnerability to human error.

ReturnTime

InvestEngine customerGlobal diversificationRebalancing

UK Market

Typical wealth managerActive managementHigh fees

Markets generally grow over the long term and many decades of research show it’s extremely difficult for even the most experienced stock pickers to consistently beat the market. ETFs are perfectly suited to a buy and hold strategy – your investments are well diversified, they’re tracking major indices that have a history of growth, and you’re avoiding the considerable fees and drag on performance of overactive trading.

Just like us, renowned US investor Warren Buffett is convinced of the benefits of passively-managed investment strategies – he has advised his wife to put 90% of her entire savings in low-cost tracker investments.

Rebalancing. Sticking to the plan.

Of course with passive investing, your portfolio will need occasional adjustments to keep it on track. Rebalancing is the crucial process of buying and selling portions of your portfolio in order to ensure the weight of each asset class aligns with your risk preference. In essence, regardless of what the market does, rebalancing helps you to stick to your investing plan as your portfolio grows.

Regular Contributions. Easier ways to invest and grow.

InvestEngine enables you to pay into your portfolio in monthly instalments. You can make regular, fixed contributions via Direct Debit from your bank account. You can make regular payments, secure in the knowledge you’ll get the compound benefits of regularly putting more into your investments. Naturally, these can be amended or cancelled as and when you like.

No regular payments

With regular payments

Our fee is only 0.45% per annum

Find out what your optimal portfolio is. Commitment free.

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With investment, your capital is at risk.

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With investment, your capital is at risk

The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. Learn more about the risks

InvestEngine (UK) Limited does not provide investment advice, or give recommendations. If you are unsure of the risk or of the suitability of an investment, you should seek advice from an independent financial adviser.

InvestEngine® is a trading name and registered trade mark of InvestEngine Limited. InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority. The Firm Reference Number is 801128. InvestEngine (UK) Limited is incorporated in the UK with company number 10438231 and has its registered office at Lawford House, Albert Place, London, United Kingdom.

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