Introducing the "Platinum Portfolio Builder"
Many of you will already be aware of or even benefitting from our Portfolio Builder service. This is a flexible and dynamic product which allows you to control and flex your contributions to amass a substantial portfolio pot; we use our extensive market and philatelic expertise along the way, using your contributions to create a long term portfolio to deliver maximum value.
The beauty of the Portfolio Builder is that you create your wealth in a steady, measured way that keeps you in control. It allows you to spread your investment and reap the rewards of long-term performance. Another benefit is the lack of need for constant involvement from you - you can sit back and rely on the continued strength of the rare stamp market and our wealth of expertise to identify and compile the best performing portfolio for you.
Today, we are making the Portfolio Builder even better.
I'd like to introduce you to the "Platinum Portfolio Builder". The fundamentals of the service are the same in that you choose what contributions to make both to start with and over time and your wealth builds steadily.
The big difference is in the structure of the plan and the returns you make on exit.
I'll provide details in a minute - first, however, let me highlight the factors underpinning this investment and making it a strong candidate for healthy returns:
"No wonder financial advisers suggest adding stamps to an investor's portfolio. Investments in rare stamps can fetch annual returns of over 45%. On average, rare stamps have given returns of about 10-15% a year in recent years. They have given steady returns and occasionally (as in 2008) beaten the Sensex."
The Economic Times, 17 January 2011
Market strength: The essential power of the Portfolio Builder, like all our investment products, lies in the continuing strength of the rare stamp market. As an alternative asset class, uncorrelated with other (generally more volatile) asset classes, it remains not just stable but on a consistent upwards curve.
Last year, despite continued economic uncertainty and irregular movements in financial and housing markets, our Bloomberg-listed GB30 Rarities Index, a clear indicator of the movement in the rare stamp market, increased 4% - this follows a compound increase per annum for the last 50 years of 10% and an increase of 39% in 2008 alone.
The important thing: the index has never declined in value in any 5-year period or in any single year over the past 56 years. What pension fund can offer you that sort of performance history? Certainly, none can in the past 5 years.
In short, the rare stamp market remains buoyant and due to simple supply-demand economics, we see no reason for this not to continue as the asset class becomes more sought after both in the UK, in the US and in Asia.
Constant growth: Not only will you enjoy capital appreciation whilst you contribute to your investment, your fund keeps on growing after you retire or stop contributing since your portfolio will continue to appreciate in value - this will keep happening until you decide to start selling your stamps.
Staggering though it seems, an up-front investment of £10,000, followed by £500 a month for 10 years could result in a sum of £131,000, as shown in the table below (in fact, that final sum would increase to a sizeable £1.2 Million if you invested over 30 years and the market for your stamps continued to grow at 10% p.a.)
The Platinum Portfolio Builder (PPB)
To give your Platinum Portfolio Builder a stronger start and to increase your chances of healthier future returns, we have changed 2 key conditions:
The minimum investment for the PPB is £10,000 to start, followed by contributions of £500 a month, though you can increase and flex these sums at any time to suit you...
We use that money to purchase rare stamps of the right quality and investment potential for you.
As the table below highlights, the Platinum Portfolio Builder could generate an 87% return in 10 years, £131,000 from a total investment of £70,000.
|Year||Contributions||Expected Portfolio Value*|
|£70,000||*assuming 10% growth YoY|
Stronger exit options to give you an even better return - with our standard Portfolio Builder, when you wish to sell your stamps or cash in your portfolio, we use our extensive expertise and contact network to do this.
After years of careful compilation and management of portfolios and your custom, we then only make our profit from the service at this stage - by charging you a commission on the sale of your items; we split the profit on the sale with you 50/50. - However, with the PPB, we offer you 70% of the profit, improving your return substantially.
And there's more...
Other useful benefits include the fact that the Portfolio Builder allows you to make partial disposals after retirement thereby allowing you effectively to draw down cash as required whilst maintaining an investment in rare stamps.
Furthermore, with Capital Gains Tax exemptions in the UK, some simple tax planning can ensure this income is yours tax-free (based on current UK tax rules - but you will need to consult your financial adviser about this).
An added benefit for our investors is that we will also store and insure your collection free of charge (after all, we hope that these high quality stamps will find their way back to us eventually, so we want to keep them in top condition). There are no annual fees, hidden costs or service charges in the holding of your investment.
We will also assign you a dedicated Investment Portfolio Manager to manage your account, provide you with annual valuations and be on hand to answer any question you may have at any point.
With the slightly quirky image of stamp collecting in the public eye, most people do not know about the huge potential of rare stamps.
I now believe that our Platinum Portfolio Builder offers you an excellent new way of reaping substantial rewards from the rare stamp market.
In summary, what makes the Platinum Portfolio Builder such a wise choice?
You are investing in an asset class with a history of unprecedented, consistent growth (even gold prices dipped on two occasions last century!) - an average long term performance of 10% per annum on a compound basis.
It is an uncorrelated asset class so continues to deliver similar returns even when interest rates are low and markets are in crisis
The PPB itself keeps you in control of contributions and is very flexible - more importantly, as the stamp market grows, your portfolio value outstrips your contributions
There are no annual charges or fees and we store and insure your portfolio for free
The PPB exit options give you a greater share of profit on exit so your returns are even higher
You can benefit from some special tax advantages:
Manage Your Tax Liability
Since rare stamps are a tangible asset, investment returns represent a capital gain for tax purposes. The current rate of Capital Gains Tax in the UK is 18%. The first £10,600 of capital gains in any tax year is exempt, and therefore tax-free.
One of the key benefits of the Portfolio Builder service is that you can choose to sell a part of your collection at any time after the first year. This provides you with the flexibility to manage your tax liabilities by selling a part of your portfolio up to the tax-free threshold each year (or £10,600 per annum - as per the allowance for the tax year 2011/12).
Furthermore, with a joint investment with your spouse you can double the value of this tax exemption giving you the opportunity to create tax-free gains each year of £21,200. (You should, however, seek professional tax advice).
"Stamps have bucked the volatility of the market seen in almost every other category of antiques and collecting and have continued their remorseless increase in value."
John Ainsley, Antiques Info, Oct 2010 edition
How to subscribe
Subscribing to the Platinum Portfolio Builder service couldn't be easier.
Complete the application form in the report and send it back to us FREEPOST at the following address:
Stanley Gibbons (Guernsey) Limited
Call us on (UK) 0845 026 7170 or (International) +44 (0)1481 708 270 and our dedicated investment team will be happy to discuss your requirements and answer any further questions you might have - or email firstname.lastname@example.org
Complete the online application form by following the link below:
We look forward to working with you to build a valuable collection in rare stamps. Let us help you provide for your retirement.
PS. If you are a collector, please let us know. This is your collection and you can have the final say about what goes into your investment portfolio. You can collect and invest at the same time.
NB: Whilst every care has been taken in the preparation of this article, this information is for general information only. Stanley Gibbons does not advise on any personal income tax requirements or issues. You are encouraged to seek professional tax advice for personal income tax questions and assistance.