We have put together a list of questions & answers that advisers & planners regularly ask us.

If you have questions we have not answered, please get in touch by emailing enquiries@ibossltd.co.uk or calling 01423 878 840.

The new MiFID II regulations have no material impact on either of the two IBOSS offerings:

However, while it is very much business as usual for us, we appreciate that as advisory firms start to work under MiFID II further questions are bound to arise.

We are therefore happy to help both firms who already use us, as well as those considering doing so, to cope with the new legislation.

Should you have any queries about MiFID II in relation to our services please feel free to get in touch with either Kevin Morrison (Business Development Manager) or Denise Webster (Business and Compliance Manager) on 01423 878 840 or by emailing:



In the meantime, please watch this space for an update on the new GDPR (General Data Protection Regulation) legislation which will come into effect on 25th May 2017.

Yes. Distribution Technology have reviewed and profiled the 4 solutions offered by IBOSS Asset Management within the risk profiles used on Dynamic Planner. The main objective of the DT risk profiles and fund risk profiling service is to provide financial advisers and their clients with a meaningful measure of the long-term investment risk of fund strategies and a mechanism for selecting solutions appropriate for investor risk appetites and capacity for risk.

The profiles which DT have assigned to the funds are set out below.

Fund / Assigned risk profile
MGTS IBOSS 1 Fund / 
MGTS IBOSS 2 Fund / 
MGTS IBOSS 4 Fund / 
MGTS IBOSS 6 Fund / 

Please email Kevin@ibossltd.co.uk for a copy of our risk profile report.

We know this is bound to be a concern. In fact, we’d be surprised if it wasn’t.

Every fund manager, from Buffett to Woodford, must start somewhere.

We know that the advisers recommending our OEIC are reassured by the fact it is managed by the same Investment Team which runs our Portfolio Management Service. Furthermore, the OEIC has predominantly the same investment process and framework.

The evidence is that the short track record isn’t deterring advisers from recommending the OEIC to their clients. At the end of July 2017, we managed £100 million, with £80 million being added so far in 2017.

Your investment will be spread across one or more of the IBOSS OEIC sub-funds. Unlike a bank, Margetts, our Authorised Corporate Director (ACD), do not hold client assets on their balance sheet.

The MGTS IBOSS OEIC sub-fund assets are held by the depositary, Bank of New York Mellon Ltd, which is one of the biggest trustee / depositary and custodians in the world. The assets held by Bank of New York Mellon Ltd are ring fenced as a separate legal entity, with the exception of some cash which is held on deposit with the Bank of New York Mellon Ltd.

In the very unlikely event that Margetts fails, the most likely action would be that the depositary would appoint a replacement operator (referred to as the Authorised Corporate Director), or return your investment plus any gain or loss.

There should be no direct effect from this action other than the normal movements of the underlying assets and a change in management.

Margetts Fund Management is a regulated firm who are also required to hold reserves, which in a worst case scenario would allow the firm to close in an orderly fashion.

In the very unlikely event that Bank of New York Mellon fails, the most likely action would be that the fund is moved to another depositary and there could be a short delay in your ability to trade in or out of the fund.

OEICs are regarded as one of the most secure asset structures within the UK market and whilst an absolute guarantee cannot be provided, the level of security is very high. The funds are UK Authorised Collective Investment Schemes and are authorised and regulated by the Financial Conduct Authority.

In the unlikely event of a failure, which causes a loss, Margetts are part of the Financial Services Compensation Scheme.

Governance of the Risk Management framework is the ultimate responsibility of the Board of Directors, which performs the Governing Function of the Firm under the supervision of the ACD. The Board of Directors are responsible for all aspects of the business, including setting the culture and ensuring that the firm acts honestly, fairly, professionally and independently.

Matthew Jealous is our Non-Executive Director

Matthew sits on the board, providing independent review of Investment decisions and processes quarterly. As a representative of our ACD, his input is extremely useful. Matthew is a CFA Charter holder and has a degree in economics, during which he conducted an empirical investigation into the relationship between risk and return and modern portfolio theory

Matthew joined Margetts in 2002 and is the lead manager of the MGTS Frontier fund range and MGTS Clarion fund range.

The answer to that is simple.

We don’t want to be constrained by the restrictions which would be placed on us if we sat in, for example, the ‘Mixed’ sector.

Again, another common, and very sensible, question.

Whilst Chris heads up our Investment Team, it is just that, a team. If Chris were unable to carry out his duties in the short-term Chris Rush would take charge. He would be supported by Matt Jealous CFA at Margetts, our ACD, and our non-executive director.

Because we follow a house view, life would continue unchanged with the same investment approach and philosophy, until Chris returned to work.

If Chris were unable to return to work our Continuity Plan provides for resources to replace key members of our team who can no longer fulfil their role.

The average number of funds varies between 25 – 40.

That’s simply because of our philosophy not to hold more than 4% in any individual fund.

If you would like to learn more about this we would be happy to explain our thinking in more detail.

The OEIC is available on the following platforms:

IBOSS OEIC Platforms

If your preferred platform isn’t listed, please let us know and we will add it. We are led by adviser demand.

Give us a call or send in your question by email and we’ll make sure you get an answer.

Our Investment Team is very accessible; they love to speak to advisers and planners.

We don’t lock them away in the office either, they are very happy to meet you for a coffee.

We don’t want to be constrained by an asset allocation tool.

Therefore, when creating the portfolios IBOSS studied numerous economic principles, including Harry Markowiztz’s modern portfolio theory, and those of Watson Wyatt and respected fund managers, as well as long term historical performance data. We then compiled our core asset allocation defining the percentages allocated to each asset class.

The emphasis was on:

Historical data and economic context

High levels of diversification and low levels of correlation

Geographical market conditions

Using multiple funds in each sector further reduces volatility, as no fund manager gets it right every time and it reduces the risk of one manager adversely impacting on the performance.

We consequently hold approximately 35 funds in each portfolio.

Two potential advantages of an ETF over a passive are:

– Ability to Trade OTC (Over the counter)
i.e. faster trading and the ability to time markets.
– Wide range of ETFs

The first point doesn’t really interest us, as we tend to take relatively long term positions. We would not choose to use a passive or ETF to time markets instead we would use them to either maintain diversification of the portfolio or purchase cheap beta to a broad index should a market look fundamentally cheap.

The second point is more interesting, the wide range of ETFs available mean that you can get exposure to fairly niche sectors or subsectors that passive products don’t necessarily cater for. This being said, we tend to take a broad, flexible view when picking funds, preferring to leave alpha generation to the underlying managers. Picking a specific sector or geographical ETF is taking that decision out of the managers hands and into ours instead, this is not our core competency which is selecting the very best managers, who get most decisions right most of the time, and constructing fully diversified investment offerings.

That being said, we do hold the Physical Gold ETC in the OEICs as a defensive position and diversifying position. So we will use ETF/ETCs should we feel it necessary.

A disadvantage of the ETF proposition in comparison to Passives is:

– There are additional costs to trade initially.
– Headline rate on ETFs are slightly more expensive.

Basically, if we are not using the advantages of an ETFs flexibility then, in our opinion, we should take advantage of the cost benefits of passives.