Frequently Asked Questions
ISA Transfers
01.
How do I transfer my ISA to GOODFOLIO?
If you already have a GOODFOLIO ISA, all you have to do is to fill in this form and send it to info@goodfolio.com and we will look to transfer your ISA for you. If you don’t already have a GOODFOLIO ISA, please create an ISA account first and then send us the ISA transfer form.
02.
How long does an ISA Transfer Take?
The ISA transfer process is heavily dependent on providers and can vary significantly - it can take 4-6 weeks or in many cases longer. Once we receive the form, we will contact your existing provider to start the process. Your provider may have specific requirements, or reject the request for other reasons, but we will communicate with you throughout the process.
03.
Which type of ISA can I transfer to GOODFOLIO?
You can transfer in a Cash ISA or a Stocks and Shares ISA. In both cases, it will be transferred to a GOODFOLIO Stocks and Shares ISA.
04.
Will the transfer be done in cash or in specie?
Transfers into GOODFOLIO Stocks and Shares ISA will be done in cash. It means, if you already have investments in your Stocks and Shares ISA, you will first sell these investments and transfer as cash to your GOODFOLIO ISA. As with all investment decisions, selling investments can pose risks. In particular, liquidity risk, which is the risk that you may not be able to sell your investment at a fair price or at all due to a lack of buyers in the market. Please find here, for information purposes only, a non-exhaustive list of the main risks to which investors may be exposed.
05.
Does GOODFOLIO charge fees for ISA transfers?
GOODFOLIO does not charge any fees for ISA transfers. However, please check with your current provider if you will be charged a transferring out fee.
06.
Can I do a partial ISA transfer?
Yes, you can do a partial ISA transfer to GOODFOLIO. For partial transfers, you must be transferring your previous years’ contributions. You cannot do a partial transfer of this year’s subscription. If unsure, please seek advice.
07.
Does it count as a part of my allowance?
An ISA transfer does not count as a new ISA subscription. However it is important to note that all ISA products are considered collectively in relation to the tax exemption limit. If unsure, please seek advice.
Product
01.
Is GOODFOLIO a Robo-advisor?
GOODFOLIO is not a Robo-advisor and it does not manage or control your portfolio for you. All investment decisions are on you. We support you with intuitive tools and data you need to manage your own portfolio with confidence and as little effort as possible.
02.
What types of accounts on offer?
General Investment Accounts and Stocks and Shares ISAs. We intend to add JISAs and Self-Invested Personal Pensions.
03.
What can be invested in?
Impact or sustainability themed Exchange Traded Funds (ETFs).
Collective Action
01.
What’s the story behind GOODFOLIO’s collective action?
If you've got an investment, your money can have a voice. And that voice can be very impactful and should represent your values. The money in your investments is helping to drive some of the world's biggest companies. The companies whose products, services and behaviours are affecting our everyday lives and the future of our world. We enable you to let your fund managers know that people with investments are watching, caring and expecting them to vote for change!
02.
How does collective action actually work on the GOODFOLIO platform?
Once a year, companies give shareholders a chance to vote 'in favour 'or 'against' proposals put forward at their Annual General Meeting (AGM). If you're using the GOODFOLIO platform for your investments in equity funds, you are a shareholder for the fund you're invested in. Your money is pooled together with other people's into a fund. This fund is used to buy shares, and the person who manages this fund - the fund manager - takes on the role of 'shareholder'. As your money is used to help buy the shares in these companies, you're an indirect shareholder. This means your voice should matter - and you can influence social and environmental issues. Once you have your say and express your wish on our platform, it will be sent to the fund manager (who usually holds the legal right to vote). Your fund manager will then vote at companies' AGMs, taking into account lots of different factors that will affect their investment, and include your say. The final result is decided based on the votes of all direct shareholders. If the required majority (usually 50% or 75%) of direct shareholders voted 'in favour', the vote is considered passed.
03.
What happens once I've had my say on the GOODFOLIO platform?
Once you have your say and express your wish it will be sent to the fund manager (who usually holds the legal right to vote). Your fund manager will see how everyone on GOODFOLIO’s platform expressed their wish (e.g. 80% in favour and 20% against), as well as other organisations who facilitate this, and can take it into consideration when voting at the AGM. This means that they won't necessarily vote in line with GOODFOLIO users. They have to consider other factors as well, such as how the vote will impact the performance of the pension or investment fund. Once your fund manager makes a decision, they will then place a legal vote at the company AGM. The final result is decided based on the votes of all direct shareholders, including your fund manager's. Each vote has a different pass threshold and carries different effects if passed. For example, some votes are only advisory rather than binding, and may need more than the usual 50% threshold to be passed.
04.
Is my vote anonymous?
Your fund manager will see how you voted but they won't be able to identify you, or see any of your personal information. If you would like further information about use of data, please visit our privacy policy.
05.
Why does my say matter?
If you are invested in an equity fund, the fund manager takes on the role of 'shareholder'. As your money is used to help buy the shares in these companies, you're an indirect shareholder. Shareholders vote on things that can change the world. They decide whether oil companies disclose their climate-change plans, pressure tech giants to prioritise gender equality and make retail giants cut down their plastic pollution. Your pension or investment has shares in these companies, which makes you an indirect shareholder. That means you can have a say in changing the world too and engaging with your fund managers and expressing your wishes can have a significant effect on social and environmental issues.
06.
Does the fund manager have to listen to my wishes?
They won't necessarily vote in line with GOODFOLIO users’ wishes. The aim of the process is to engage and influence. It is worth remembering the fund managers have to consider other factors as well, such as how the vote will impact the performance of the pension or investment fund. The fund manager will also be receiving expressions of wishes from other organisations as well, not just from Goodfolio. Once your fund manager makes a decision, they will then place a legal vote at the company AGM.
07.
How has GOODFOLIO made this possible?
GOODFOLIO has partnered with Tumelo to make this feature possible. Tumelo is a technology partner, which aims to make stewardship and voting more impactful. Tumelo also works with a range of other organisations including Aviva and Fidelity.
08.
Is it possible to see the results of the votes and how the fund manager voted?
Once the AGM has taken place, and we receive the results, you will be able to see the outcome in your “Completed” screen. It is not always possible for us at this stage to provide how the fund manager’s opted to vote at this stage, although we are working to make this possible.
09.
Do fund managers always take action on every vote and can you look through a fund manager’s voting history?
Sometimes fund managers don’t take action on every single vote. Through our relationships with Tumelo, and increased engagement and transparency on these issues, we hope to create a collective voice for action. Over time, we hope to be able to enable a detailed view of how the specific fund manager is using their voting rights for social and environmental issues. Availability of this information is not always possible, but we aim to relay information back to you, when complete information becomes available.
Risk and Regulation
01.
Regulation and Authorisation
GOODFOLIO Ltd is an appointed representative of RiskSave Technologies Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 775330).
02.
What is investment risk?
Investment risk is the risk that you get back less money than you put in. All investments carry some degree of risk. Exchange-traded funds can lose value, even all their value, if market conditions sour. Even in normal conditions your investments will move down as well as up and you could get back less than you put in.
Potential investors should understand the potential rewards on offer and assess if the risk is worth it. Importantly, investment carries an inherent risk that you may lose some or all of the monies that you have invested. If you are unsure of any investment or investment decision, you should seek the services of a qualified and registered financial adviser before you make the investment or decision.
Potential investors should understand the potential rewards on offer and assess if the risk is worth it. Importantly, investment carries an inherent risk that you may lose some or all of the monies that you have invested. If you are unsure of any investment or investment decision, you should seek the services of a qualified and registered financial adviser before you make the investment or decision.
03.
Does GOODFOLIO give advice?
No. The Services that we offer are what is known as “execution-only” services. That means, we will (subject to the terms available here) execute your Instructions without investigating or advising on the suitability or otherwise of the investment or your Instructions. We do not provide or offer any investment or other advice, including advice on the suitability of any particular investment or investment strategy. Individual investors should make their own decisions or seek independent advice.
04.
Does FSCS cover losses if the value of investments go down?
No. FSCS does not cover poor investment performance. The value of your investments in UK stocks is protected if the UK custodian fails and cannot return your investments. The FSCS protects up to £85,000 of your investments held at our UK custodian. The FSCS doesn’t cover losses in the event the value of your investments go down. Your capital is at risk. See the FSCS website for further details.
05.
What is market risk?
Market risk is the risk that you will get back less than you put in due to changes in the market prices of your investments.
Market events, investor perception, and the ability to deal in the relevant Instrument may create a positive or negative impact on the investment’s price. The price of an Instrument may change significantly and unexpectedly and it may become more difficult to purchase or sell and / or you may see the price of an Instrument increase or decrease when executed compared to the price quoted at the time an Order was submitted.
Currently all investments funds offered on Goodfolios platform are rated 6 or 7 out of 7 on a risk scale. This means that the risk of loss in any particular investment is particularly high.
Market events, investor perception, and the ability to deal in the relevant Instrument may create a positive or negative impact on the investment’s price. The price of an Instrument may change significantly and unexpectedly and it may become more difficult to purchase or sell and / or you may see the price of an Instrument increase or decrease when executed compared to the price quoted at the time an Order was submitted.
Currently all investments funds offered on Goodfolios platform are rated 6 or 7 out of 7 on a risk scale. This means that the risk of loss in any particular investment is particularly high.
06.
What is liquidity risk?
Liquidity risk is the risk that you may not be able to sell your investment at a fair price or at all due to a lack of buyers in the market. ETFs are generally supported by dedicated market makers but in certain conditions these market makers may not offer a price at which they will buy your investment when you choose to sell it.
07.
What is the risk level of investments?
All investments on the Goodfolio platform are designed, by their managers, to be appropriate for retail customers. However, individual investments carry different levels of risk which the manager indicates in the KIID which is available for each fund on the platform. You should carefully consider how much risk you are able to take. Remember, higher risk may mean higher rewards but it also increases the chance that you will suffer larger losses. As the platform is not an advised service, you must undertake this research yourself.
08.
What are the ETF specific risks?
The main risk index ETFs are exposed to is market risk. As they seek to replicate broad market indices, anything weighing on those indices will likely have a similar impact on the ETF.
Thematic ETFs designed to track proprietary indices can be much more exposed to specific sectoral risk. If a particular sector is hit hard by an external influence, and stocks in that sector are the only holdings for that ETF, it follows that the ETF will be hit hard too.
Investing in these products may expose you to additional risk, for instance you may be at risk if the product's counterparties fail. It's important you understand the specific risks associated with your investment. If unsure, independent professional advice should be sought.
Finally there is no guarantee that an ETF will effectively track the performance of its benchmark. This can happen due to management fees, trading frictions or due to the manager not being able to purchase all the assets in the benchmark.
Thematic ETFs designed to track proprietary indices can be much more exposed to specific sectoral risk. If a particular sector is hit hard by an external influence, and stocks in that sector are the only holdings for that ETF, it follows that the ETF will be hit hard too.
Investing in these products may expose you to additional risk, for instance you may be at risk if the product's counterparties fail. It's important you understand the specific risks associated with your investment. If unsure, independent professional advice should be sought.
Finally there is no guarantee that an ETF will effectively track the performance of its benchmark. This can happen due to management fees, trading frictions or due to the manager not being able to purchase all the assets in the benchmark.
09.
What is Currency Risk?
Your investments are priced in Pounds Sterling (GBP). However, the fund may earn returns by investing your money in non-GBP assets. While some of this risk may be hedged by the fund manager, if the currency of the funds’ investment underperforms GBP you will be exposed to a loss.
10.
What about Taxation?
If you invest through an ISA product you may not be liable for income or capital gains tax. However this is subject to the ISA rules and it is your responsibility to check this.
If you invest through a GIA product you will be liable for all capital gains and income taxes associated with the performance of your investment. It is your responsibility to ensure that you pay all relevant taxes in full.
Tax rules are liable to change in the future. If you are unsure of how to proceed you should speak to a tax expert.
GOODFOLIO ISA’s Key Features Documents can be found here and are also sent to you in durable format upon opening an account with us.
If you invest through a GIA product you will be liable for all capital gains and income taxes associated with the performance of your investment. It is your responsibility to ensure that you pay all relevant taxes in full.
Tax rules are liable to change in the future. If you are unsure of how to proceed you should speak to a tax expert.
GOODFOLIO ISA’s Key Features Documents can be found here and are also sent to you in durable format upon opening an account with us.
11.
What happens if GOODFOLIO fails?
GOODFOLIO is a startup company which means that there is a greater than normal risk that it will cease to trade due to a variety of reasons, including an inability to secure investment funding. While your assets and money are securely held by a third party custodian and further secured up to £85,000 by the FSCS, the failure of GOODFOLIO could lead to a delay in your ability to access your investments.
12.
What risks are associated with ethical information provided?
As well as access to financial information, GOODFOLIO will display ethical information where available. This data will be provided to us by third parties. This type of data in particular is subject to constant change and may be updated frequently.
This information does not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only.
There are no guarantees that we will always be able to provide this data. There are also no guarantees that ethical goals and objectives of the fund are met or remain the same over time.
This information should not be considered solely or in isolation, nor should it be taken as advice or recommendation.
This information does not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only.
There are no guarantees that we will always be able to provide this data. There are also no guarantees that ethical goals and objectives of the fund are met or remain the same over time.
This information should not be considered solely or in isolation, nor should it be taken as advice or recommendation.
13.
Are there General Risks to be aware of and can I learn more?
Investments are subject to a variety of risks and you should not invest more than you can afford to lose. You should ensure that you maintain an adequate amount of savings in bank accounts to cover your living expenses in case you suffer any deterioration in your personal circumstances. Please ensure that you do this before investing any money in a risk-bearing product such as those offered by GOODFOLIO.
Please find here, for information purposes only, a non-exhaustive list of the main risks to which investors may be exposed.
Please find here, for information purposes only, a non-exhaustive list of the main risks to which investors may be exposed.
Pricing
01.
How does the pricing work?
First £1,000 of investments through GOODFOLIO free of charge. All accounts with over £1,000 experience a low, fair, transparent all-in fee 0.30% for the first £12,000, and 0.25% for anything above. No trading fees, no transaction fees, no hidden commissions. For more information please see pricing page.
02.
How are fees calculated?
We charge a monthly fee that is calculated from the average portfolio value over the course of any given month. The monthly fees are equivalent to annual fees ranging from 0.25% to 0.30% per annum (incl. VAT). This is demonstrated in the example below.
Consider the following example: Beginning of March, your portfolio has a value of £19,000 and it grows to £21,000 over the course of that month. The monthly average value of your portfolio is £20,000.
Your total annual fee is 0.30% for the first £12,000 and 0.25% for the amount invested over £12,000. This is then divided by 365 for each day of the year.
£12,000 x 0.30% = £36
£8,000 x 0.25% = £20
(£36+ £20) / 365 x 31 = £4.76 (incl. VAT) The fee is VAT inclusive and covers trading fees and custodian charges.
If there is cash available in your account that is not currently invested, annual fee of 0.10% (incl. VAT) applies that covers the custodian charges.
When investing there are two additional costs outside our or your control that you need to be aware of. One is fund charges directly incurred by ETF providers, currently averaging around 0.30% per annum. The other is the bid-ask spread, which is the amount by which the ask price exceeds the bid price for an asset in the market, which impact averages around 0.15%.
There are no additional set-up, trading, or transfer fees.
Consider the following example: Beginning of March, your portfolio has a value of £19,000 and it grows to £21,000 over the course of that month. The monthly average value of your portfolio is £20,000.
Your total annual fee is 0.30% for the first £12,000 and 0.25% for the amount invested over £12,000. This is then divided by 365 for each day of the year.
£12,000 x 0.30% = £36
£8,000 x 0.25% = £20
(£36+ £20) / 365 x 31 = £4.76 (incl. VAT) The fee is VAT inclusive and covers trading fees and custodian charges.
If there is cash available in your account that is not currently invested, annual fee of 0.10% (incl. VAT) applies that covers the custodian charges.
When investing there are two additional costs outside our or your control that you need to be aware of. One is fund charges directly incurred by ETF providers, currently averaging around 0.30% per annum. The other is the bid-ask spread, which is the amount by which the ask price exceeds the bid price for an asset in the market, which impact averages around 0.15%.
There are no additional set-up, trading, or transfer fees.
03.
How does GOODFOLIO collect fees?
Fees are collected on a Quarterly basis. On the first day of each quarter, the billed amount for the past quarter (3 monthly fees) is directly deducted from your cash balance. If there is no cash available in your account, the fees will be collected from portfolio value, and proportionally from all fund holdings in your portfolio.
You can download quarterly invoices from the platform.
You can download quarterly invoices from the platform.
04.
What are fund charges?
Fund charges usually range from 0.10% to 0.80% per annum. At the moment, on average these funds have total expense ratios (TER) of 0.30% p.a. and these costs are deducted directly from the fund’s assets and are thus included in the price of the ETF.
As these costs are directly incurred by the provider, they will not show up on your account with GOODFOLIO. However, they do affect your return since they are deducted at source.
As these costs are directly incurred by the provider, they will not show up on your account with GOODFOLIO. However, they do affect your return since they are deducted at source.
05.
Why can you not tell me exactly what my monthly fee will be?
We always show an estimate of your monthly fee when you create a new portfolio or make changes to an existing portfolio. However, as your total fee in any given month depends on the average value of your portfolio over that quarter and the amount of cash you hold, it is not possible to tell you exactly in advance what the final quarter fee will be.
As with all investing, your capital is at risk.
GOODFOLIO Ltd is an appointed representative of RiskSave Technologies Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 775330).
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The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by us or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity.
There are risks associated with investing in securities. Investing in exchange traded funds, involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.
There are risks associated with investing in securities. Investing in exchange traded funds, involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.
