SAGA INVESTMENTS

Making investing simple

If you want to give your money the chance to grow over the medium to long term (at least five years), and you’re comfortable taking some investment risk, Saga Investments could be an option for you.

Saga Investments is provided jointly by HUB Financial Solutions Limited and Hubwise Securities Limited (Hubwise):

• Hubwise provides the Saga Stocks & Shares ISA and Saga General Investment Account. 
• HUB Financial Solutions has designed and operates the investment portfolios. 

Saga Investments is a non-advised service. This means you won’t receive advice on investment decisions or whether the products are suitable for you. It’s therefore important to read the information on this website carefully to make sure Saga Investments is right for you.  

What is investing?

Investing is when you put your money into an account with the aim of making it grow. It usually involves buying assets like company shares (equities), government or corporate bonds – either directly or through investment funds. The idea is that, over time, you will increase the value of the money you put in. Because of this, investing is generally seen as a medium to long term commitment.

However, it's important to be aware that the value of your investments and any income received from them can fall as well as rise This means you may not get back the amount you invested. 

So if you’re happy to accept some risk in return for higher potential rewards compared to other types of saving, and you won’t need the money for at least five years, investing might be worth thinking about. 

Before you choose to invest you should consider your financial circumstances and be comfortable you have the available cash after allowing for your day-to-day living costs and any other regular savings (for example pension contributions). 

It may also be worth thinking about clearing any outstanding short-term or high-interest unsecured debt, and making sure you’ve got enough money set aside in an easily-accessible account for emergencies.  

What are the main differences between saving and investing?

With saving, it’s historically been the case that you'll always get back at least what you put in. But rising prices (inflation) mean your money may not hold its value in the future.

With investing, your money will go up and down over time in line with the performance of the underlying investments and you may get back more or less than you put in. 

But over the medium to long term, investing can smooth out the effect of market ups and downs giving your money the potential to grow more than with saving.

You could consider saving if:

• You need access to your money in the next few years
• Don’t want to risk your money
• You want more predictable returns.

You might want to think about investing if:

• You’ve got at least five years until you need to take your money
• You’ve got enough money set aside for emergencies
• You’d like the potential for your money to grow more than inflation over the medium to long term.

How can I invest my money with Saga?

At Saga, we’ve made it easy to invest. There’s a choice of two products:

Saga Stocks & Shares ISA

• If you've still got any unused ISA allowance this tax year, even if you've already paid into one, then the Saga Stocks & Shares ISA is a tax-efficient option. 
• You can start saving with a £100 lump sum, or £100 each month, up to the maximum ISA allowance for each tax year (currently £20,000). You can also make lump sum payments of £100 upwards from time to time.
• If you’ve got other ISAs, you could consider transferring the cash value across to your Saga Stocks & Shares ISA. 

Any investment returns will be free of Capital Gains Tax and Income Tax. 

Find out more about the Saga Stocks & Shares ISA.

Saga General Investment Account

• If you've reached your ISA allowance this tax year, and you have more money you want to invest, you can open a General Investment Account. 
• You can invest as much as you want each year, starting from a £100 lump sum or £100 each month. You can also make lump sum payments of £100 upwards whenever you like.
• If you’ve got other general investment accounts, you could  consider transferring the cash value across to your Saga General Investment Account. 

You may need to pay Capital Gains Tax (CGT) if your investments have increased in value when you sell them.  You may also need to pay income tax on any dividend income or interest received depending on your personal tax position. 

Find out more about the Saga General Investment Account.

What can I invest in with Saga?

Whichever Saga Investment product you select, you have a choice of three ready-made investment portfolios. Each portfolio comes with a different investment objective and level of risk. You just need to choose the one that’s best aligned to your individual circumstances and goals.

The portfolios are designed by HUB Financial Solutions, and give you the opportunity to invest in a number of funds which hold a wide range of different assets like cash, bonds and company shares (or ‘equities’), across UK and international markets. 

This diverse range of assets helps spread the investment risk while giving your money the opportunity to grow over the medium to long term.

The funds in the Saga investment portfolios are managed by established fund management companies. These are shown in the portfolio fact sheets.  

Find out more about the investment portfolios.

The Glide Path feature

If you’re investing for something specific, you may  have a fairly good idea of the time you’ll need to access your money.  If this is more than five years away, you may want your investment to automatically reduce in risk as you come closer to this point in time. This helps reduce the risk of your money going down in value just when you’re planning to use it. 

That’s why we offer the Glide Path feature.

You can choose this option when you first invest, or you can switch it on at any point in the future. Your money will then automatically switch down into a lower risk-rated portfolio which aims for lower volatility. 

Find out more about the Glide Path feature

Combining your investments

Getting organised for the future doesn't always mean putting more money away. Saga Investments enables you to transfer the cash value of investments you have with other providers - whether that’s ISAs, other general investment accounts or both. Combining your investments can provide a number of benefits.

Find out more about combining your investments.

Fees and charges

The total annual cost is up to 0.75% per year of the overall value held within your Saga Stocks & Shares ISA and/or Saga General Investment Account. This is made up of:

• An Investment Service Fee of 0.52% per year
• A Platform Fee of 0.13% per year 
• Fund charges of up to 0.10% per year, depending on the portfolio you select and the funds your money is invested in.

There will also be transaction costs incurred by each fund when it buys and sells underlying assets it holds. The level of these costs depend upon the dealing activity of the fund.

You’ll receive a full up-front breakdown of the fees and charges you’ll pay in the ‘Illustration of Costs and Charges’ document when you open a product. 

These fees and charges are collected automatically - you don't need to do anything.

Find out more information about the fees and charges on the Saga Stocks & Shares ISA page and the Saga General investment Account page.

Things to bear in mind

Investing involves risk, and feeling comfortable with your risk level is important as you may not get back the amount you’ve invested. Here are some things to keep in mind:

• It’s important to invest for the medium to long term (at least five years). Generally, profits come from medium to long term investing. But there could be a time when your investment goes down in value. If this happens and you’re not able to wait before selling your investments, you could lose money. So, you shouldn’t invest money you are expecting to need soon.
• Shares (equities) can rise and fall in value and are generally more risky than other types of investments (for example bonds and cash). So investment portfolios which hold a large proportion of shares are generally more risky than those that hold fewer shares.
• Bonds can also rise and fall in value, but generally carry less risk than shares. So investment portfolios that hold a large proportion of bonds are generally more predictable than those that hold lots of shares. Equally, they’re likely to have less growth potential.
• Saga Investments is a non-advised service. That means you won’t receive advice on investment decisions or whether the products are suitable for you. If you need additional support to identify which products and investment portfolios will meet your needs, this is not the right service for you.

Find out more about the risks of investing.

Who are HUB Financial Solutions Limited and Hubwise Securities Limited?

HUB Financial Solutions Limited specialise in providing services for people on the journey to, and through, retirement.

HUB Financial Solutions is part of Just Group plc:

• A FTSE-250 financial services company 
• A specialist in the retirement market
• Manage more than £23 billion of pension savings.

HUB Financial Solutions Limited (FRN 455713) is authorised and regulated by the Financial Conduct Authority. 

HUB Financial Solutions have arranged for Hubwise Securities Limited to provide and operate the investment platform and the Saga Stocks & Shares ISA and Saga General Investment Account products. 

Hubwise are experts in their field and pride themselves on innovation, effective operations, custody and safeguarding of assets. 

Hubwise are part of SS&C Technologies:

• A global leader in financial technology
• more than $13 trillion of assets under administration
• more than 20,000 business clients across 40 countries.

The information provided on this website should not be taken as a recommendation, advice or forecast. Tax depends on your personal tax position. Tax rules are subject to change by the UK Government

Hubwise Securities Limited (FRN 502619) is authorised and regulated by the Financial Conduct Authority, is an ISA Plan Manager (HMRC ISA Plan Manager Z1723) and a Member of the London Stock Exchange.