Has SCM Broken The Investment Mould?

October 06, 2014

SCM Private has launched three new online lifestyle-orientated portfolios aimed at investors who have been cut off by the Retail Distribution Review (RDR) from gaining affordable independent financial advice and the best investment products.

Launched by SCM Private founders, Alan and Gina Miller, the three new websites move away from the business-to-business model and instead focus on a direct-to-consumer approach.

The three sites target three different types of audience: www.scmdirect.com targeting 25 - 45 professionals, www.moneyshe.com aimed at female investors and www.scm50.com targeting over 50's investors. All of the sites offer three ways to invest, which can be directly into the portfolios, via a NISA or via a low cost SIPP.

At first glance these may seem a bit gimmicky, but the investment portfolios underneath are the solid bread and butter of SCM Private. They are three pure exchange traded fund (ETF) portfolios offered in a variety of ranges: three core portfolios, three blended portfolios, three currencies(sterling, dollar and euro). All of which have a minimum Investment level of £15,000, which is the new NISA limit.

The difference with this approach is that they have, arguably, been made easier to access. The focus of these websites is for the public to learn about investing easily and understand how it can work for them.

Alan Miller, co-founder and CIO of SCM Private, explained that the driving force behind this launch was that different audiences engage in different ways with investing.

One of the best tools put on all three sites is the portfolio simulator where you can test your investing skills by putting in the amount you want to invest and comparing the products on offer. Yes, this of course does include SCM’s own branded portfolios, but they also compare these to wealth managers (data is from Numis) and there is also an option to input your own data. The simulator then estimates an individual's total charges and profits in sterling before they invest.

Gina Millar co-founder at SCM Private explains that the aim of the new sites is to change the way the UK saves. "We want to help prudent investors, many of whom have been cut off by RDR from gaining affordable independent financial advice and the best investment products.  As a result of this advice and product gap, more and more investors are having to face the complex and deliberately confusing world of investments unaided.

"We aim to end this investment gap and fill the void with new low-cost investment websites that deliver fair, clear, modern, transparent and engaging solutions that speak to investors in a language they can understand.  We hope this will increase trust and encourage a more active savings and investing culture in the UK,” she said.

SCM Private has been fierce in its bid to educate the retail sector about investment. It launched its ‘True and Fair Campaign’ three years ago, which called for total transparency on costs and fees and a better deal for investors.

SCM Private also has a five year track record in its ETF portfolios, as shown below:

SCM Bond Reserve Portfolio has returned 16.3 percent since inception 1 June 2011 - 31 Aug 2014.

SCM Absolute Return Portfolio has returned 49.9 percent since it launched on 8th June 2009 - 31 Aug 2014.

SCM Long-Term Return Portfolio returned 65.3 percent since inception 8th June 2009 - 31 Aug 2014.



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