Be MWise about your investment options!

First of all, the main question should be, why should we invest?

Investing wisely is crucial for long-term financial security.  

Setting your goals, understanding how much risk you wish to take, and then tracking your progress can not only help you achieve that security, but also give you peace of mind along the way.

For over 30 years, Mattioli Woods has been helping our clients do that. Our services have been built around the client, often serving multiple generations as wealth is transferred down the family. This can sometimes require establishing a long-term plan with some complex arrangements.

But in many instances, our clients do not need complex arrangements. Often, they just want to take advantage of investing in a new tax year by opening an Individual Savings Account (ISA), or to save regularly by investing a fixed amount on a monthly basis. 

This is where MWise comes in. 

So what is MWise?

MWise is an online investment service designed and offered by Mattioli Woods that offers a range of benefits to its users, with a focus on long-term investing.

It provides investors with a digital platform to open an Individual Savings Account, a Junior ISA, or a General Investment Account (GIA) in minutes following three simple steps. Once you’ve decided which type of account you wish to open, the app will ask you to complete a risk questionnaire. This is to ensure that the investment recommended is suitable for you. Finally, we ask for a few personal details and once this is complete you are all set to fund your account and begin investing.

That sounds simple enough, but how does MWise work?

MWise works by enabling investors to create a personalised investment strategy that aligns with their financial goals, risk tolerance, and investment preferences.  

Based on your risk questionnaire, Mattioli Woods will recommend one of our multi-asset funds (MAFs) or passive multi-asset funds (PMAFs) that we consider may be suitable for you.

We also provide a tool to let you see how your planned investment may perform over time, based on how much you invest initially and if you choose to invest monthly.

Crucially, it offers a user-friendly interface that allows you to manage investments, track performance, and make changes to your portfolio with ease.

So would you say MWise is suitable for short or long-term investing?

We always recommend users of MWise invest for a minimum of five years. Investing for the long term allows investors to potentially ride out short-term market fluctuations and benefit from the power of compounding over time. It is important for investors to have a realistic timeframe in mind when considering MWise as an investment platform.

Therefore, we created the app to provide several benefits that make it an attractive choice for long-term investors. These include:

• • Diversification: Access is provided to our funds (MAFs and PMAFs), all of which are managed by our in-house investment team. The funds provide a ready-made, diversified portfolio across different asset classes, sectors, and regions. Diversification helps spread risk and potentially enhances returns over the long term.
• • Professional investment management:  MWise gives investors access to the expertise of Mattioli Woods’ Investment team. The team consists of experienced professionals who actively manage and monitor the portfolios, making adjustments based on market conditions and investment opportunities, aiming for long-term growth.
• • Tax efficiency: Individual Savings Accounts (ISAs) and Junior ISAs (JISAs) are tax-efficient investment solutions and are two of the offerings from MWise. These tax wrappers provide opportunities to grow investments while minimising tax liabilities, helping investors plan for their long-term financial goals, including retirement.
• • Transparency and control: All investors who have an MWise account can view transparent and comprehensive reporting, meaning they can easily track their portfolio's performance, view holdings, and monitor transaction history. This level of visibility allows investors to make informed decisions and maintain control over their long-term investments.
• • Security: All investment in MWise is held by Pershing Securities Limited, part of BNY Mellon, the world’s biggest custodian of assets. All services and investments are offered within the rules and regulations of the Financial Conduct Authority, and assets in MWise are covered by the Financial Services Compensation Scheme in the unlikely event of the company going bust.

Does this mean MWise can be used for retirement planning?

In a way. Although not currently offering pensions, MWise can still be used as part of your long-term plans to provide financial security in retirement.

It offers investment options that allow you to save and grow your wealth over the long term. By utilising these tax-efficient investment solutions, you can create a supplementary retirement nest egg while maximising your savings potential.

We are currently looking at ways in which we may be able to offer a low-cost SIPP alongside the other accounts you can open in MWise.

Like our clients, we’ve noticed a lot of media coverage surrounding ESG investing. What does MWise have to offer in this space?

At present, MWise allows investors to invest in Mattioli Woods’ MAFs and PMAFs. These funds integrate environmental, social and governance (ESG) considerations as part of our overarching commitment as a firm to ESG principles, but they are not specifically ESG funds.

Mattioli Woods also offers the Responsible Equity Fund, which has a greater focus on sustainability and a higher threshold in terms of ESG standards. While this is not currently available through MWise, we are planning to make it available later this year. If you are an existing client of Mattioli Woods, your consultant will be able to provide more information about this fund and discuss its suitability with you.

One of the first questions potential investors will ask is, how much does MWise cost?

And that’s an important question to ask! There is a single management fee of 0.3% per annum, which is charged quarterly. This is the only actual charge you will see. There is no upfront fee, no transaction fee, and no charge for withdrawing money or closing an account. 

The other main ongoing cost to consider is that the MAFs and PMAFs do charge fees, but this is reflected in the value of the funds themselves.

The costs are fully disclosed upfront, and we have developed a dedicated cost calculator so you can see the impact of all charges on your investments. We also issue an annual summary of all costs and charges that have been levied during the preceding 12 months.

Is it easy to open an MWise account?

It really is. You can either download the app from the App Store or Google Play – just search for ‘MWise’ – or if you prefer to work on a laptop or PC just visit the website – https://mwise.mattioliwoods.com/.

You will be asked for two forms of ID, so you will need to have a mobile device handy to complete our electronic identification and verification checks. This works by you capturing your image using your device, which we check against your passport or driving licence.

What types of accounts are available?

Depending on where you are in your investment journey depends on what would be best for you. You can open a Stocks & Shares ISA or a General Investment Account, starting with an initial lump sum of £500. These are great for those new to investing or to run alongside the wealth management plan you already have in place with your consultant.

You can also open a Junior Stocks & Shares ISA on behalf of a child under 16, starting with a lump sum investment of just £250.

Once the account is open, you can add money at any time, up to any applicable limit (£20,000 each tax year for an ISA, and £9,000 each tax year for a JISA – ISA rules apply and limits can change).

All accounts then offer a regular savings option, from just £50 a month.

You’ve told us how we can invest, but can you withdraw money?

Yes. Simply go the app and tell us how much money you wish to withdraw, and the money will be with you in about five days. To do this, we will need to sell some of your investment, which may give rise to a capital event if you are withdrawing money from a GIA.

Can I transfer other accounts into MWise?

Again, yes. You can use MWise to give us your transfer instruction, and we will do everything else. Depending on where your existing account is held, most transfers can be completed electronically without you having to sign any additional paperwork.

All transfers will be processed in cash. This means your existing provider will need to sell your current investment with them, and then send the cash to MWise. We will then invest the cash when received into your chosen investment.

MWise does not charge for processing a transfer; however, your current broker may levy some charges.

What happens if I decide to close my MWise account?

This can also be instructed through MWise, and again at no cost. Note, though, that we recommend an MWise account should be held for a minimum of five years.

Can you tell us what else MWise does?

MWise is designed to offer you many of the benefits of Mattioli Woods, all managed digitally. For instance, every time you invest, you will be issued with a suitability report confirming why we believe your new investment is suitable for you.

We will automatically generate a quarterly valuation of your holdings, and an annual cost disclosure detailing all costs levied on your account in the previous 12 months. You can review online all the personal details we hold for you and, if any of them change, you can update them through MWise.

Finally, there is a secure message facility so you can correspond with us securely and in confidence.

Can MWise replace the current service I receive from Mattioli Woods?

MWise is designed to complement, but not replace, any services you currently have. It means you can open smaller accounts quickly and efficiently, and build up your investment over time, in a cost-effective way.

Although it offers simplified advice, MWise cannot consider your broader financial circumstances or goals as thoroughly as one of our consultants can. If you are looking for a holistic long-term financial plan for you and your family, a conversation with one of our consultants is a good way to start.

How would you sum up MWise?

MWise from Mattioli Woods is an investment service that offers numerous benefits for long-term investors. With its user-friendly interface, diversification opportunities, access to professional investment management, and a focus on tax efficiency through ISAs and Junior ISAs, MWise provides a robust platform and can be part of the Mattioli Woods toolkit investors need to help achieve their long-term financial goals.  

As with all investing, your capital is at risk, and you can find out more about MWise by visiting mattioliwoods.com/MWise.

All content is correct at time of writing.