Question 1

How do I open a Netwealth Liquid Reserves portfolio?

Accepted Answer

To open a Netwealth Liquid Reserves portfolio, you need to sign up to our free online investment service with your name and email.
Once you are logged in, select 'Open an account' in the top navigation bar, and go through the quick steps: base currency (GBP, USD or EUR), your investment goal and the account details (ISA, Pension or GIA) and portfolio risk level. To invest in a Liquid Reserves portfolio, you need to select Risk Level 1, in the 'Risk Level' section.
If you need any help setting up your Netwealth account or new portfolio, please contact our client service team at clientservice@netwealth.com or 020 3795 4747.

Question 2

What are the assets behind the Netwealth Liquid Reserves?

Accepted Answer

This portfolio consists of high-quality, short-term assets including fixed income, cash, and money market funds. The fixed income exposure comprises short-term debt from governments, banks and companies with strong balance sheets and high credit ratings. The assets in the Liquid Reserves aim to deliver a combination of capital preservation, liquidity, and yield.

Question 3

What is the expected yield from this type of account?

Accepted Answer

Due to the high-interest rate environment we currently find ourselves in, the estimated gross yield on offer for this portfolio is 3.9% per annum for GBP portfolios, and the income is paid monthly into your account. There is no minimum holding period and you can exit or move the cash to another Netwealth portfolio at any time. This is not a guaranteed rate and is subject to change.

Question 4

What is the risk associated with this Portfolio?

Accepted Answer

This portfolio is appropriate for the most conservative investors who are seeking capital preservation and yield from a diversified portfolio with daily liquidity. Please remember that despite this offering being low risk and low volatility, it is still an investment and when investing your capital is at risk. The Portfolio is managed by our investment team who actively select the most appropriate assets as well as monitoring performance and risk.

Question 5

What are the fees for the Liquid Reserves portfolios?

Accepted Answer

We aim to keep the total cost of investing as low as possible, and we provide total transparency to our clients. The Netwealth fee for the Liquid Reserves is 0.75% if you invest between £50,000 and £249,999, 0.60% for investments between £250,000 and £999,999, 0.45% for investments between £1,000,000 and £4,999,999 and 0.35% if you invest more than £5,000,000. There are also underlying fund and trading costs, estimated at 0.15%.
Our fees are based on the total net contributions to your account and include: investment management, custody and safe keeping of your investments, transaction charges, administration, and any applicable VAT.
We do not charge initial fees or fees to transfer in pensions, ISAs or cash.

Question 6

Is there a minimum investment to open a Netwealth account?

Accepted Answer

There is a minimum investment of £50,000 per client. This is across all account types. Lower minimums are available through the Netwealth Network.

Question 7

Can I open an ISA or pension with the Netwealth Liquid Reserves?

Accepted Answer

Yes, you can invest in this portfolio using Pension and ISA tax wrappers up to the respective personal annual allowances.

Question 8

Who will be looking after my money?

Accepted Answer

The Liquid Reserves portfolio, like our other Netwealth portfolios, is managed by our investment team. Our experienced team manage portfolios actively whilst keeping costs lower than traditional wealth managers by investing mainly through passive funds. The investment team closely monitor the economy and markets and adapt our investment positions across all portfolios accordingly.
In terms of security, all client assets are separately custodied and ring-fenced. Client money is held in accordance with the applicable FCA rules and protected under the Financial Services Compensation Scheme (FSCS).

Question 9

Is there a minimum period to hold my money on the Netwealth Liquid Reserves?

Accepted Answer

There is no minimum period to hold your money and you can exit or move your cash to another Netwealth portfolio at any time. Income is paid every month into your account.

Question 10

I am already invested in Risk Level 1, do I need to do anything?

Accepted Answer

No if your goal remains a low risk investment targeting capital preservation, liquidity and a secure yield, then if you remain in Risk Level 1 you will be invested in the Liquid Reserves portfolio. If you want to take a higher level of risk then you can switch Risk Level in the normal way. Our advisers are available to provide further guidance.