How to read your
Octopus Portfolio Manager
Valuation report
WELCOME
This guide has been created to help you understand
your Octopus valuation report.
If you’re anything like us, then you’ll hate the type
of jargon and terminology that comes with making
an investment. Often the information that financial
services companies provide is confusing or long
winded and leaves the investor unsure about what’s
happened to their money. Not only can this be
terribly frustrating, but it’s the exact opposite of
what a good investment company should do.
Simon Rogerson
Chief Executive
At Octopus we try to be different. We want to be
able to explain all our products by using language
and terms that are easy to understand. It’s not about
‘dumbing down’, or patronising our investors, it’s
about open, effective communication that helps them
to understand how we manage their money and to
make informed choices about their investments.
It might seem obvious, but your valuation report is
intended to help you see quickly and easily what the
value of your investment is at a specific moment in
time. It details the investments we’ve made on your
behalf, the value of these investments and how they
make up your portfolio.
All of this means there can be quite a lot of detail
in a valuation report. Although we aim to make sure
your report is straightforward to understand, some
technical references are unavoidable. This guide
should help to explain these in greater detail to
you and offer you more guidance on anything
within the report that isn’t immediately clear.
Of course, if you have any questions about your
report, then please do get in touch with us.
You can reach us on 0800 316 2295 and we’ll
be happy to help you.
| Page 2
Simon Rogerson
Chief Executive, Octopus Investments
HOW TO USE THIS GUIDE
Your Octopus valuation report is made up of a series
of different statements. These will tell you everything
you need to know about your investment.
Each investor into Octopus Portfolio Manager
receives a personalised report, showing the value
of their investment and the activity undertaken
within the portfolio over the reporting period.
It’s worth bearing in mind that the report is a
snapshot taken at a given point in time.
If any trading activity has occurred over the period,
for example the purchase or sale of shares, then this
will be shown. And if any charges have been taken
during the period they’ll be shown too.
At the end of each tax year we’ll also generate a
report that gives a statement of any growth that is
potentially subject to capital gains tax (if applicable
to your investment). This will help you complete
your tax return.
To help you understand the information contained
in these reports, this guide includes examples of the
different sections within a typical Octopus Portfolio
Manager valuation report. We’ve also included some
brief notes explaining the terms we’ve used in each of
the sections. We hope that you find this information
helpful, but if not please let us know.
| Page 3
YOUR INVESTMENT SUMMARY
SECTION 1 EXPLAINED
This provides you with the key elements of your
investment, including details of the performance
over the reporting period and since the initial
investment was made. It also includes a reminder
of the Investment Objective and Investment
Policy, which helps to put the performance
into context.
INVESTMENT SUMMARY
SECTION 1
Mr A B Sample
Mr A B Sample
20 Old Bailey
OPM0016
London
EC4M 7AN
Octopus Portfolio Manager
Investment Summary as at ‘valuation date’
This portfolio is currently assigned the Global Equity Opportunities investment profile. Here’s a reminder of the investment objective and
investment policy for this investment profile
Investment Objective
A focused growth investment strategy with the risk-return characteristics of a fully invested equity portfolio, which aims to maximise long-term
investment returns by harnessing global equity investment opportunities.
E
L
P
M
A
EX
Investment Policy
In order to achieve the investment objective, this portfolio invests predominantly in overseas equity funds and only a lesser proportion in the UK
equity market. The portfolio features a mixed allocation between active fund managers, who should provide performance in excess of their
benchmarks, and passive vehicles, which provide cost effective market exposure. This is designed to achieve returns in excess of the underlying
markets, while containing the overall cost of the investment.
Portfolio Performance
This is shown over two ranges. The ’Performance over the reporting period’ column shows the performance from the beginning to the end of the
period covered by this report. The ’Performance since initial investment’ covers from the date of initial investment until the end of the report
period covered. The value of your investment at the start of the date range is shown, followed by the value of any additional capital and stock
received (this includes any further investment you’ve made over the period. ‘Less capital, income and stock withdrawal’ includes any withdrawals
you’ve made over the period as well as any charges. The sum of these movements is the ‘Adjusted valuation’. Your portfolio performance
figures are based on a time-weighted rate of return. This is the best way to measure fund manager performance because it is independent of the
additions and withdrawals over the period. These are expressed in cash and percentage terms.
Date range:
1
Value at start of range:
2
Performance over the reporting period Performance since initial investment
1 July 2010 to 30 Sept 2010
29 Sept 2009 to 30 Sept 2010
£50,044
£50,000
Plus monies received and/or stock received:
£0
£0
3
Minus withdrawals and/or fees:
£0
£0
4
Adjusted Valuation
£50,044
£50,000
5
Portfolio performance (£)
£4,530
£4,970
6
Portfolio Performance over date range
Your OPM Portfolio Value as at 30 Sept:
1
The value of your portfolio at the
beginning of the date range.
2
Any monies deposited and stock
inflows to your portfolio over the
date range. This includes any top-ups
you have made to your investment.
3
Any cash withdrawals and stock
outflows from your portfolio over the
period. This includes any withdrawals
you have made from your investment
as well as any fees deducted.
| Page 4
4
The adjusted valuation taking
into account any additions and
withdrawals as above.
5
How much the value of your portfolio
has increased/decreased over the date
range, in monetary terms, which is due
to fund manager performance and not
the additions and withdrawals made.
6
The performance of your portfolio
over the date range. Performance
figures are based on the return that
8.97%
9.93%
£54,970
£54,970
the investment itself has achieved.
This is the best way to measure fund
manager performance because it is
independent of the additions and
withdrawals over the date range.
YOUR INVESTMENT SUMMARY
SECTION 2 EXPLAINED
This section compares the performance of the
investment with that of several different asset
classes. The bar charts show the performance of
specific indices, and compares them to the return
of your investment. It’s worth bearing in mind
that the aim of Octopus Portfolio Manager is to
provide you with a smoother investment journey
than you’d get from investing in one or more
different asset classes. Over the longer term
different asset classes are likely to deliver varying
levels of return, but your investment aims to
deliver a more consistent performance.
INVESTMENT SUMMARY
SECTION 2
Mr A B Sample
Mr A B Sample
20 Old Bailey
OPM0016
London
EC4M 7AN
Octopus Portfolio Manager
Investment Summary as at ‘valuation date’
1
Portfolio performance vs market indices
Date range:
Performance over the reporting period Performance since initial investment
E
L
P
M
A
X
E
1 July 2010 to 30 Sept 2010
29 Sept 2009 to 30 Sept 2010
Your OPM Portfolio:
8.97%
9.93%
Cash (Libor 3 month GBP):
0.17%
0.64%
UK Gilts (FTSE A British Govt All Stocks TR):
3.97%
7.85%
14.03%
12.29%
8.30%
9.78%
UK Equities (FTSE All Share Index):
International Equities (FTSE All World Index ex UK):
Performance over reporting period versus market indices (%)
(1 July 2010 to 30 Sept 2010)
Performance since initial investment versus market indices (%)
(29 Sept 2009 to 30 Sept 2010)
Your portfolio by asset class
2
Asset Allocation
■ International Equities
52%
■ UK Equities
25%
■ Developing Market Equities
19%
■ Cash
1
The performance of various
representative market indices over
the reporting period. Cash (LIBOR
3 month GBP), UK Gilts (FTSE
Government Securities UK Gilts
Index), UK Equities (FTSE All Share
Index) and International Equities
(FTSE All World Index ex UK),
presented in a table and in bar charts.
2
4%
Asset Allocation Chart – A
breakdown of the different types
of assets held within your portfolio,
based on holdings within the
different underlying funds held.
| Page 5
YOUR PORTFOLIO HOLDINGS
EXPLAINED
This provides you with a snapshot of the
investments you hold within Octopus Portfolio
Manager at a given point in time – the valuation
date. This page will help you see at a glance
precisely what you hold and in what quantities.
PORTFOLIO HOLDINGS
Mr A B Sample
Mr A B Sample
20 Old Bailey
OPM0016
London
EC4M 7AN
Octopus Portfolio Manager
Portfolio Holdings as at ‘valuation date’
2
1
Description
Unit Trusts
3
No of
Shares/Units
Cost
4
Current
Price
5
Current
6
% of
ValuePortfolio
E
L
P
M
A
EX
4,850.00
1.03635,026.06 52.17%
IM Octopus Alternative Strategy C Acc4,850
ABC Fund
3,000.00
3,108.90
Capital Account [GBP]
1,000.00
1,036.30
Capital Account [GBP] (Suspense)
550.00
569.97
Income Account [GBP]
300.00
310.89
IM Octopus Fixed Income C Acc4,500 4,500.00 1.02414,608.45 47.83%
XYZ Fund
2,500.00
2,560.25
Capital Account [GBP]
1,150.00
1,177.72
Capital Account [GBP] (Suspense)
400.00
409.64
Income Account [GBP]
450.00
460.85
7
Equities Total
9,350.00
9,634.51
100.00%
8
Total Portfolio
Exchange rates to Valuation Currency [GBP]
EUR1.124
GBP1
USD1.619
9,350.00
9,634.51
100.00%
9
1
Description – This lists your individual
holdings at the time of the valuation.
4
Current Price – The price of the
shares/units at the date of the valuation.
2
No of Shares/Units – The total
number of shares/units held in each
company/fund.
5
Current Value – The current total
value of the funds held (total number of
shares/units multiplied by current price).
Cost – The total overall cost of
the shares/units including dealing
commission, stamp duty and/or
PTM Levy, where applicable. The PTM
levy is a charge automatically imposed
on investors, and collected by their
brokers, when they sell or buy shares
with an aggregate value in excess of
£10,000. The charge is £1, and the
money raised goes to the Panel on
Takeovers and Mergers.
6
% of Portfolio – The proportion of
your overall portfolio that the individual
funds represent.
7
Equities Total – The total of all equity
holdings (total cost, total current value
and % of overall portfolio).
3
| Page 6
8
Total Portfolio – The total of all
investments held (shown as total cost,
total portfolio current value and % of
portfolio, this will always be 100%).
9
Exchange Rates – An exchange rate
will be shown if you hold a fund
invested in a foreign currency
investment.
YOUR CASH STATEMENT
EXPLAINED
Your cash statement lists the details of debit and
credit transactions over the reporting period, as
well as the opening and closing balance.
CASH STATEMENT
The capital account shows the amount of cash
held and available for investment. This may also
show a ‘suspense balance’. This is money that has
been invested but where the deals have not yet
‘settled’. You will see the trades on your portfolio
and trading statement but they will not be fully
reflected on your cash statement until after the
settlement date.
Mr A B Sample
20 Old Bailey
London
Mr A B Sample
EC4M 7AN
OPM0016
Octopus Portfolio Manager
Cash Statement as at ‘valuation date’
1
2
3
Date Description
Shares Traded
4
5
Debit
Credit
Balance
Capital Account – GBP
The ‘accrued fees’ account shows the
management fees applied to your account.
Debits are taken from this account and credited
with money taken from the capital account
when a balance is available.
1-Jan-10 Opening Balance
1-Jan-10 Initial Investment
1-Jan-10 Initial Charge
1-Jan-10 Purchase: IM Octopus Alternative Strategy C Acc
4,850.00
7,500.00
1-Jan-10 Purchase: IM Octopus Fixed Income C Acc
4,500.00
3,000.00
1-Jan-10 Purchase: IM Octopus International Equity C Acc
3,000.00
1-Jan-10 Closing Balance
E
L
P
M
A
X
E
0.00
12,600.00
12,600.00
250.00
12,350.00
6
0.00
0.00
1
Date – The date of cash movements.
3
6
2
Description – The type of account
followed by a description of the
transaction (either dividend payment,
interest payment, purchase, sale or
management fee charge).
Shares/Units Traded – The number
of shares/units traded (either
purchase or sale).
Opening Balance – The account
balance at the beginning of the
report period.
4
Debit – Value of shares/units
purchased, fees and cash withdrawals.
7
Closing Balance – The account
balance at the end of the report
period.
5
Credit – Payments received from sales,
dividends, interest and cash invested.
7
| Page 7
YOUR TRADING STATEMENT
EXPLAINED
A trading statement is provided for all acquisitions
and disposals during the valuation period.
TRADING STATEMENT
Mr A B Sample
20 Old Bailey
London
Mr A B Sample
EC4M 7AN
OPM0016
Octopus Portfolio Manager
Trading Statement from ‘date’ to ‘valuation date’
Acquisitions
1
2
4
3
Trade Security
Transaction No of Type
Shares
DateName
5
6
7
9
8
Purchase Total
Price Commission Stamp Other
Cost
E
L
P
M
A
EX
1-Jan-10 IM Octopus Alternative Strategy C Acc
Purchase
4,850
1.00
0.00
0.00
0.00
4,850.00
1-Jan-10 IM Octopus Fixed Income C Acc
Purchase
4,500
1.00
0.00
0.00
0.00
4,500.00
1-Jan-10 IM Octopus International Equity C Acc
Purchase
3,000
1.00
0.00
0.00
0.003,000.00
Total Acquisitions
Disposals
Trade Security
Transaction No of DateName
Type
Shares
1-Feb-10 IM Octopus International Equity C Acc
1
Trade Date – The date of the
acquisition or disposal.
2
Security Name – The name of the
company/fund invested in/disposed of.
3
Transaction Type – This will either
be ‘Purchase’, ‘Sale’ or ‘Equalisation’.
Equalisation is an adjustment that
ensures investors who buy units partway through an accounting period
receive a fair and appropriate
level of income.
4
3,000
11
Net
Price CommissionOther Proceeds
1.10
12
Loss
3,300.00
300.00
Total Disposals
3,300.00
300.00
Price – For acquisitions, the actual price
paid per share/unit (this will differ from
the Cost Price as it does not include
fees). For disposals, the unit price of
which the shares/units were disposed
of excluding charges.
9
6
Commission – External charges from
brokers to carry out the trade. Only
applicable if third party assets are held
in your portfolio.
10 Total
7
Stamp – HMRC charge when investing
directly in equities. Not applicable when
investing through OEICs.
11 Net
8
Other – Contract note charges and
minimum fee (where applicable).
12 Profit/Loss
0.00
10
Profit/
0.00
5
No of Shares/Units – The number
of shares/units acquired/disposed of.
| Page 8
Sale
Sale
12,350.00
Total Cost – The total cost of the
acquisition including dealing commission,
stamp duty and/or PTM Levy. Total cost
may not be equal to the purchase price
multiplied by the number of shares/units
as the total cost figure includes fees.
Acquisitions – The total cost
of all acquisitions during the valuation
period including dealing commission,
stamp duty and/or PTM Levy.
Proceeds – The total amount
realised on disposal of the shares/units
including charges.
– The profit/loss generated
by the disposal. This is calculated using
the average sale price of all disposals.
YOUR CGT STATEMENT EXPLAINED
YOUR CGT STATEMENT
EXPLAINED
Capital Gains Tax (CGT) is a tax paid on the
profit made from the sale or disposal of an
asset. In the case of a stock market investment,
it can result from the disposal of shares or units
at a profit. However, just because a capital gain
is made does not mean that tax is owed. This
will depend on your personal tax position and
whether you have already used up your annual
tax-free allowance (known as the ‘annual
exempt amount’).
CGT STATEMENT
Mr A B Sample
20 Old Bailey
London
Octopus Portfolio Manager
2
3
Bargain Date – The date on which
the transaction took place.
Security Name – The name of the
company/fund.
Transaction Type – The type of
transaction (buy/sale/takeover etc).
2
Bargain Date
Security Name
1-Feb-10
IM Octopus International Equity C Acc
3
4
Transaction
No of
Type
Shares
5
Net Proceeds
E
L
P
M
A
X
E
Capital Gains Tax arises as a result of a ‘chargeable
event’ – in the case of stock market investment, the
disposal of shares/units at a profit. Just because a
gain is made does
not mean
a tax on the gain
4 Nocapital
of Shares/units
– The
number
must be paid. That depends on your personal tax
of position,
shares/units
that
were
traded.
and on whether total gains for the year are
within the annual exemptions. This report summarises
your Capital Gains Tax calculations and indicates your
5 Sale
Price
– The
unit price
Capital
Gains
Tax liability
for thisat
investment only.Your
actualthe
CGTshares/units
liability will take
account
of all your gains
which
were
traded,
and losses for this and previous tax years and any
excluding charges.
6
Sale
7
Profit/
Sale Price
3,000
Schedule Totals
Your actual CGT liability will take account of
all your gains and losses for this and previous
tax years and any CGT allowances available to
you. You should verify the details from your
own records and seek assistance from your
tax adviser.
1
OPM0016
Capital Gains Tax Statement from ‘date’ to ‘valuation date’
1
This report summarises your CGT
calculations and indicates your CGT liability
for this investment only.
Mr A B Sample
EC4M 7AN
1.10
Loss
3,300.00
300.00
3,300.00
300.00
CGT allowances available to you. You should verify
the details from your own records or seek assistance
from your tax adviser.
6
1 Bargain
Net
Proceeds
The
total
amount
Date ––The
date
on which
the
transaction
took
place.of the shares/units
realised
on the
trade
2 Security Name – The name of the
including
charges.
company/fund.
3
Transaction Type – The type of transaction
7 Profit/Loss
– The etc).
profit/loss generated
(buy/sale/takeover
by the disposal. This is calculated using
the average sale price of all disposals.
| Page 9
4
No o
share
5
Sale P
share
6
Net P
the tr
7
Profit
dispo
price
YOUR CGT CALCULATIONS
SUMMARY
EXPLAINED
YOUR CGT CALCULATIONS
SUMMARY
EXPLAINED
This report summarises your Capital Gains
Tax calculations and indicates your Capital
Gains Tax liability.
CGT CALCULATIONS SUMMARY
Mr A B Sample
20 Old Bailey
London
Mr A B Sample
EC4M 7AN
OPM0016
Octopus Portfolio Manager
Summary of Capital Gains Tax Calculations from ‘date’ to ‘valuation date’
1
Gains from ‘date’
2
Losses from ‘date’
3
Net position
4
Capital Gains Tax Allowance
5
Net Position after CGT Allowance
£0.00
6
Chargeable gains at 18%
£0.00
£300.00
E
L
P
M
A
X
E
£0.00
£300.00
£10,600.00
The details relating to CGT are based on information available to us, and we do not accept responsibility
for any errors or omissions, or for the accuracy of the calculations. You should verify the details from your
own records or seek assistance from your tax adviser.
This report summarises your Capital Gains
Tax calculations and indicates your Capital Gains
Tax liability.
1
Gains – The total amount of any profit
made during the valuation period.
2
Losses – The total amount of any losses
made during the valuation period.
3
Net Position – The sum total of
profit less total losses made during the
valuation period.
| Page 10
4
1 Gains
– The
totalAllowance
amount of any profit made
Capital
Gains
Tax
the valuation period.
– Theduring
amount
of Capital Gains Tax
2 Losses – The total amount of any losses made
Allowance
available to you during
during the valuation period.
the valuation period.
5
New Position After CGT Allowance
– The value of the Net Position less the
Capital gains tax Allowance available.
6
3
Net Position – The sum total of profit less total
losses made during the valuation period.
4
Capital Gains Tax Allowance – The amount of
Chargeable
Gain
– The amount
Capital Gains
Tax Allowance
available to you
during the
valuation
of Capital
Gains
Taxperiod.
payable at
the current rate.
5
Net P
of the
Allow
6
Charg
Gains
YOUR CONSOLIDATED TAX
CERTIFICATE
EXPLAINED
YOUR CONSOLIDATED
TAX CERTIFICATE
EXPLAINED
This certificate provides details of income
received and tax paid during the valuation
process. Please note that as interest payments
are paid gross, if you are liable for income
tax then any interest received will create
an income tax liability.
CONSOLIDATED TAX CERTIFICATE
Mr A B Sample
20 Old Bailey
London
Mr A B Sample
EC4M 7AN
OPM0016
Octopus Portfolio Manager
Consolidated Tax Certificate from ‘date’ to ‘valuation date’
We certify that the dividends or interest summarised below and specified on the attached schedule(s) were received by us or by our nominees
on behalf of the above who was one of the persons for whom the investments were held on the dates on which the dividends or interest were
payable. The original tax credit certificates or certificates of deduction of income tax will, when required, be lodged with HM Revenue & Customs.
E
L
P
M
A
X
E
4
Gross
1
2
3
Interest Received
UK Bank
UK Unit Trusts and OEIC
UK Companies
Overseas Bank
Overseas Unit Trusts and OEIC
Overseas Companies
5
6
Overseas Tax
Income Tax/
Tax Credit
Accumulation Value/
Dividend/Interest
0.00
0.00
0.00
0.00
0.00
Dividends Received
UK Companies
UK Venture Capital Trusts‡
UK Unit Trusts and OEIC
Overseas Unit Trusts and OEIC
Overseas Companies
0.00
7
Equalisation
Stock Dividends Received
UK Co, Unit Trusts and OEIC
Overseas Co, Unit Trusts and OEIC
For and on behalf of Octopus Investments Limited
Date
‡Where income is received from Venture Capital Trust this summary page is for information only, unless you have exceeded the £200,000 annual
investment limit
I/We declare that I was/we were the beneficial owner(s) of the shares/securities/units forming the relevant holdings mentioned on the attached
schedule(s) and that I was/we were beneficially entitled to the said dividends/interest.
Signature
Date
This certificate with attached schedule(s) should be retained and produced, if required in support of any claims to tax relief.
This certificate has been approved by HMRC.
This document will allow you to complete your tax return. If this is done by your accountant
or tax adviser, you should pass a copy to them.
1
Interest Received – The source of any
interest earned on uninvested cash
during the valuation period.
This certificate provides details of income received
and tax paid applicable during the valuation period.
Please note that as interest payments are paid gross,
any interest received will create an income tax
4 Gross
total
value
of anytax.interest
liability,–ifThe
you are
liable
for income
received
before
income tax deductions.
1 Interest
Received – Source of any interest
5
2
3
Dividends Received – The distribution
of part of a company’s/fund’s earnings
to shareholders. Dividends are usually
paid twice a year and consist of a main
dividend and an interim dividend during
a company’s/fund’s accounting year.
Stock Dividends Received – The
payment of a dividend to shareholders
in the form of stock instead of cash
during the valuation period.
6
earned on uninvested cash during the valuation
period.
Overseas
Tax – The value of any tax
2 Dividends Received – The distribution of part
paid overseas.
of a company’s/fund’s earnings to shareholders,
usually twice a year, there is traditionally a main
dividend and an interim dividend during a
Accumulation
Value/Dividend/
company’s/fund’s
accounting year.
Interest – A company/fund which
has accumulation units. In the UK, this
is where income is reinvested rather
than being paid to investors, usually
in the form of dividends. Re-investing
the money can raise the unit price of
the investment, effectively making the
investments more valuable, and/or
meaning the investor owns a greater
share in the investment.
3
7
the un
more
which
Stock Dividends Received – The payment of a
dividend to shareholders in the form of stock
instead of cash during the valuation period.
4 Gross – The –
Equalisation
Units
are
gross
valuethat
of any
interest
received. The
any
purchased
or total
heldamount
at thebefore
beginning
deductions of income tax.
of
an
accounting
period,
and
held
5 Overseas Tax – The value of any tax
throughout
that period, are referred
paid overseas.
to
as
Group
I Value/Dividend/Interest
units. Units that are– A
6 Accumulation
company/fund
accumulation
purchased
partwhich
wayhas
through
the units. In
the UK, this is where income from trusts is
accounting
period
are
referred
to
reinvested rather than being paid to investors,
which would
usuallyGroup
be in the2form
as Group
2 units.
unitof dividends.
By re-investing the money the trust can raise
holders are only entitled to a share
of the income that has accrued in the
distribution period from the date of
purchase. To make sure that each
investor receives the correct amount
they are entitled to ‘equalisation’
is paid only on Group 2 units. The
equalisation element is distributed
to Group 2 unit holders at the end
of the accounting period.
| Page 11
7
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include
purcha
deduc
are the
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constit
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octopusinvestments.com
Octopus Investments Ltd is authorised and regulated by the Financial Conduct Authority.
1699-01-VAL-0614 PF
Please contact us on
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