Discretionery Asset Managemenet

MyWealth Investments - Discretionery Asset Managemenet

Equities

Discretionary segregated portfolios

Derivatives in the portfolio can include any of the following instruments: listed geared instruments (listed options), futures on the JSE All Top40 Index and contracts for difference (CFD’s). The CFD’s are geared at a multiple of 5 or put differently at a margin of 20%.

Non-managed accounts

Clients will have access to trading screens provided by Legae Peresec and MyWealth will earn a rebate of 20 basis points per trade. A client-facing desk will be manned by MyWealth to deal with any client queries.

  • Segregated portfolios are managed on an aggressive basis, and the opportunistic style includes active management, endeavoring to capture short term trading opportunities.
  • Leverage is used to boost investment performance. This is done using CFD’s that provide 5x gearing.
  • Another technique that can be used is short selling.
  • Legae Peresec acts as a prime broker for which they receive 10 basis points per trade.
  • Short selling is the practice of selling a share or related derivative instrument which you do not own, with the intention to buy back at lower prices to benefit from falling prices.
  • Short selling will be employed as a hedging technique to reduce equity exposure should the portfolio manager see the market as overvalued.

 

Clients who want to trade for themselves will open a stock broking account at Legae Peresec and execute their own trades. Should clients encounter problems, MyWealth can be contacted.

Short Selling 

  • Short selling is the practice of selling a share or related derivative instrument which you do not own, with the intention to buy back at lower prices to benefit from falling prices.
  • Short selling will be employed as a hedging technique to reduce equity exposure should the portfolio manager see the market as overvalued.

 

Non-Managed Accounts

Clients who want to trade for themselves will open a stock broking account at Legae Peresec and execute their own trades. Should clients encounter problems, MyWealth can be contacted.

 

Risk Management 

The following set of rigorous risk management principles ensure each client’s capital is prudently exposed to adverse market conditions:

  • Risk alert models are managed by MyWealth to ensure that mandated parameters are adhered to. Parameters are as follows:
  • Gross exposure 200%, Net exposure 150%, Concentration risk max 20% per individual counter with a minimum exposure of 5% concentration risk. Concentration risk per sector 40%.
  • Gearing is limited to a multiple of 5 which means a margin of 20%.
  • Only selective clients will be considered i.e. clients who understand and accept the risk associated with this type of mandate.

Key Facts

Long/short Discretionary Portfolio
Risk Profile: High PI Cover: R5m
Gross Exposure: 200% Brokerage per transition: 30 bps
Net Exposure: 150% Concentration Risk: 5%-20%
Benchmark: CPI + 3% Man Fees: Paid Quarterly
Performance Fee: 18% Stop-Loss: 5%-10%
Management Fee: 0.5% Max loss:  100%
Minimum Investment: R100 000 Rebate: 20 bps
Prime Broker: Legae Peresec Investor: Sophisticated

 

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