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An Investment Club Share Account gives you a straightforward way to buy and sell shares and other stock market investments. It's just like a bank account for your investments.
You pay in to make purchases, then dividends from investments and proceeds from sales are added to your balance. You can also add to your account shares you already hold elsewhere, whether they are paper certificates or in another nominee account: having all your stock market investments in one place makes it easy for you to keep your eye on them.
Just like your bank account means you can see how much money you have, so your Account means you can always see at a glance what investments you have, and what they are worth. It's an easy way to keep right up to date.
Of course, share dealing isn't right for everyone. After all, share price, and therefore their value, can go down as well as up and, when you come to sell them, you could get back less than you initially invested. The income you get from your investments can also go up or down. So, as an account holder you and you members have direct access to our plain-speaking experts for practical advice on choosing the investments that are right for you.
Your account will be managed by your two nominated representatives - that way you keep control of dealing, administration etc, but all members have online access to view existing investments, monitor performance and research new investments.
Your account also has various in-built features to help you monitor and manage your investments more easily:
Your account has various in-built features to help you monitor and mange your investments more easily:
set up separate accounts for different purposes, perhaps even to mirror investments you hold elsewhere
keep an eye on companies whose shares you might be thinking of buying, by adding them to a ShareWatch account
seek our Advice team's view on different companies - where we've published a view on shares you hold in your account; there's a direct link to their assessment
call our Advice team to speak direct with our experts for everything from their latest views on individual shares to a complete review of all your stock market investments
research shares direct from your account, with access to comprehensive information, news and opinion
see how the value of your investments has changed since you bought them, with the profit/loss shown against each different investment
get a free copy of our regular investment magazine, The Shareholder, packed with news, views and information, plus tips from our Advice team.
buying and selling shares can give rise to a Capital Gains Tax liability and income from investments may be subject to income tax. So along with a handy half-yearly account statement we'll provide an annual tax certificate each April, to make it easier to complete your tax return. The tax treatment for clubs is different from that of individuals as the basis and levels of taxation can change from time to time; so for detailed tax considerations we would encourage you to speak to an adviser. You may also find some useful information on the Proshare Investment club website, www.proshareclubs.co.uk,
All your investments are held in a 'nominee' name - Share Nominees Limited, a separate company within the Share plc group that exists purely to act as 'trustee' for customers' holdings. Being in nominee name enables us to act on your instructions, whether that's to sell your shares quickly and easily, or to handle other events, such as those described in 'Changes to your investments'.
And of course, whichever name your investments are held in your Club remains the beneficial owner. Naturally, they are safe and secure too - and covered by the Financial Services Compensation Scheme.
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paying in
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For convenience, simplicity and control we recommend you set up a bank account for your Club. Then simply arrange for your members to pay in their regular subscription (perhaps by standing order) and credit your account either as a regular payment (we can set up a direct debit for you) or by cheque as and when you are making investments.
You can also pay money into your account by direct transfer from your Club's bank account (your bank may charge you for this service).
Once you've paid in, you can use your money straightaway to buy shares or other investments. There's no need to wait for deposits of up to £10,000 at any one time to be 'cleared, though larger amounts will only be available after clearance (this normally takes 3 working days).
All the credits into your account are shown on your half-yearly account statement, along with dividends received, the proceeds of sales, all withdrawals of cash and purchases of investments. You can also view your account statement and transactions online at any time.
Cheques you pay into your account must be drawn on your Club account, as due to anti-money laundering regulations, we are unable to accept cheques from third-parties, including a spouse.
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withdrawing money
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When you've sold shares and want to withdraw money from your account, we'll normally pay the proceeds straight to your Club's bank account. That way it's faster, easier and more convenient as you don't have to wait for a cheque to turn up and then pay it in yourself. And income from your investments can be automatically paid to your club bank account each quarter.
If you do need a cheque we can send you one. For your security, cheques will always be payable to the Club, rather than to any individual member. There is usually a small charge for this service, although withdrawing income on a quarterly basis by direct transfer to your nominated bank account is free of charge. You'll find full details in 'Costs'.
When you choose to have income from your investments paid out each quarter, we'll add up all the dividends you receive in that period and credit them direct to your bank account. Alternatively, re-invest that income to add to your existing investments you'll find more details in 'Managing your dividends'.
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buying shares and other investments
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Your Club representatives can place your deals online, where they can be dealt straightaway. Alternatively, they can give dealing instructions by phone, post, fax or email, and have them handled along with those of other customers in one of 3 dealing sessions each day.
When you buy unit trusts (including our Preferred Funds) the actual purchase will normally be made at noon. Our dealers will let you know if a different timescale applies.
Online, you can place orders at any time for immediate dealing. You can also place an order outside market hours, to be dealt shortly after the market opens. And our dedicated dealing lines are available from 08:00 to 18:00 each day to take your dealing instructions.
Our dealers aren't able to advise you, but you can speak to our Advice team about your purchase. Also, bear in mind when placing your order that shares do go up and down in value and, when you later come to sell them, you may get back less than you originally invested. And unless you've chosen fixed interest investments, the income you get from your investments can also vary.
When you give us your purchase instructions we'll buy shares up to the amount of cash available in your account, including the value of any sales which have not yet settled.
The stock market opens at 08:00 and closes at 16:30 each market day, so dealing instructions received outside these hours will be dealt shortly after the market re-opens. If you place an order when the market is closed, it is generally a good idea to set a price limit as share prices can fluctuate quite widely when the market opens.
When dealing online you can choose whether to deal straightaway or wait to have your order dealt alongside those of other customers in our batch dealing sessions.
Batch dealing starts at £2.50 for each purchase whereas realtime purchases start from £7.50. So for smaller value purchases the batch option can be cheaper. You'll find full details in 'costs'.
The batch sessions take place three times a day, from 09:00, 13:00 and 16:00, and when you choose this option you should be aware that, because your shares will be bought alongside those of other customers, the price you get may not be the same as when buying them immediately. To allow time to process your order, each batch session closes five minutes before it takes place. The market may also quote a different price because of the larger number of shares being bought together. The price you pay could, therefore, be higher or lower than if your shares had been bought on their own.
While the batch option gives you a lower commission level than the realtime option on purchases under £750, it does mean you will not know the exact price of the shares you've bought until later in the day. And if the share price is likely to move before the next batch dealing session you may want to weigh-up the cost saving against that potential change in the price.
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selling shares and other investments
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Your Club representatives can give dealing instructions by phone, post, fax or email for dealing in the next 'batch' dealing session, or deal straightaway by placing sale orders direct from your Club's account online.
Our dedicated dealing lines are available from 08:00 to 18:00 each day. The stock market opens at 08:00 and closes at 16:30 each market day so dealing instructions received outside these hours will be dealt when the market re-opens.
Our dealers aren't able to advise you on your sale or comment on taxation issues, so do bear in mind when placing your order that the price may now be lower than you originally paid, and if it is higher may give rise to a Capital Gains Tax liability.
When dealing online you can choose whether to deal straightaway or wait to have your order dealt alongside those of other customers in our batch dealing sessions. Either way, the minimum sale commission is £7.50, so you just need to decide when you want your deal to take place. You'll find full details in 'costs'.
The batch sessions take place three times a day, from 09:00, 13:00 and 16:00, and when you choose this option you should be aware that, because your shares will be sold alongside those of other customers, the price you get may not be the same as when selling them immediately. To allow time to process your order, each batch session closes five minutes before it takes place.The market may also quote a different price because of the larger number of shares being sold together. The price you get could, therefore, be lower or higher than if your shares had been sold on their own.
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price limits
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When you buy or sell shares you can choose to set a price limit. This ensures you only buy if the market price is no higher than the price you are prepared to pay, or you sell shares only if the market price is at least what you're prepared to sell them for.
You can set a buying or selling price limit at the same time as you give us your dealing instructions, whether you do this via our dealers or direct through your online account, and there's no charge for monitoring these limits for up to 365 days.
Price limits can be set for both immediate and batch dealing, and you may renew or amend them as often as you need, free of charge.
While sale or purchase price limits are the most popular type of limit used, there are more advanced limit types you can use, giving you tighter control over buying and selling shares.
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advanced limit types
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The basic 'price limit' options ensure that, when buying or selling shares, you only trade when you can do so at the price you've set, or better. Advanced options give you more control still over buying and selling your investments.
- Stop-Loss limits - to limit potential losses on a share you've just bought, or to protect gains on shares you hold already.
Use a Stop-Loss limit to restrict potential losses on a share you've just bought, or to protect gains on shares you hold already. Rather than monitor the price continually, set a Stop-Loss trigger and your holding will be sold should the price fall to the level you set.
- Tracking Stop-Loss limits - gives you the added advantage of being able to lock-in profits should a share price start to fall back.
Add a Tracking Stop-Loss limit and you've more control still. Here you can track a price as it rises, lock-on to the peak price, set a threshold and automatically sell if it falls below it.
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extra features
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With your Investment Club share account you've access to other features to give you more control over buying and selling your investments
- Alerts - when a share price meets your limit, we'll let you know by email, so you can decide whether or not to act. You can also choose to simply highlight the fact in your online account, or ask us to do both!
- Profit/Loss indicators - showing the current gain/loss compared to your acquisition cost
- Sector analysis - the quick way to check the spread of your investments across the different market sectors.
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managing your dividends
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If your Club is investing to build up the value of your capital you may want to choose to have dividends and other income automatically re-invested every quarter. Because we carry this out for all our customers at the same time, you benefit from reduced commission, as described in 'Costs'. Alternatively, you can leave your income in the account ready for you to invest when and where you want.
However, if you are liable for Capital Gains Tax, or are investing for income, you may prefer to take your dividends paid out to you. Choose this option and we will automatically pay them into your bank account each quarter. If you're not sure which option is right for you we'd recommend you seek independent advice.
When you choose to reinvest your dividends, and any other income such as interest on any cash balance in your account, you can:
Invest into any individual share, so long as you already hold some of those shares in the account. You can change your re-investment instructions at any time but please allow at least 3 days before the next re-investment is due to take place so we can act on your new instructions.
Invest into the share of the highest value in the account.
You can also choose to have income automatically paid into your Club's bank account; a particularly useful option is you're using investing for income.
Set your choice when you open the account and if you want to make a change simply call our Customer Service team with your instructions.
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changes to your investments
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From time to time events may take place that affect your investments. This could be a takeover of one company by another, a merger between two businesses, an opportunity to buy more shares at a special price (a 'rights issue') or any other change that affects your shareholding. Collectively these types of event are known as 'corporate actions' and we will handle them for you.
We'll explain the event that is about to take place, ask for your instructions and then carry them out on your behalf.
In some cases you will be asked to vote - in the event of a take-over offer for instance.
In other cases you'll be able to choose whether or not to take up an offer - as with a rights issue for instance.
And on other occasions the change may be applied automatically to your shareholding, as in the case of a 'split' in the shares when the company is seeking to reduce the price of an individual share in order to make it more affordable for smaller share holders.
Whatever the event our Corporate Actions team will let you know about it, explain your options and ask for your instructions.
We'll then monitor the event and, when the time comes, carry out your instructions, be that taking up rights by buying more shares using funds from your account, selling those rights and crediting the proceeds to your account, or accepting an offer for your shares and paying the proceeds into your account.
All this is handled free of charge, as part of the overall account service.
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