Grow your returns smartly with intelligent investing.
Our Managed Portfolio product leverages the power of our award winning proprietary MarketsFlow technology to help our portfolio managers optimally construct and manage your investment portfolio. Using our sophisticated platform, we continually rebalance your portfolio to endure any market conditions and help you yield the best possible returns.
You can choose your portfolio to be constructed based our returns-oriented constructs of High Growth Portfolio with a performance of 25.6% in 2018 or Growth portfolio with a performance of 8.7% in 2018, each of which have a specific set of parameters for stock, shares and options selection to suit your investment goals and risk objectives.
How MarketsFlow’s Intelligent Platform works for you.
Our award winning and sophisticated platform designs a bespoke portfolio construct based on your preferred MarketsFlow portfolio i.e. High Growth Portfolio or Growth Portfolio each of which have a different base construct and risk allocation.
Our highly advanced MarketsFlow platform then uses a scientific data driven model to make the following decisions for your investment:
Optimal cash investing ratio at any given time period.
This means that the platform will indicate - by generating buy, hold or sell signals - how much of the portfolio capital should be invested in which stocks and options. This will also mean that during volatile or uncertain markets the platform indicates a “non invested” signal which essentially translates in your funds being liquid and not invested for risk aversion purposes. As our system is continually assessing market conditions, this will ultimately result in higher returns meaning we invest only when the time is right for returns.
Which stocks and when to buy.
Positions sizes and weighting depending on the market conditions (Allocation decisions).
Which stocks and when to sell.
Rebalancing the portfolio continually as necessary. This might also mean that there might not be much activity in your portfolio until the market conditions are just right. Our platform is results driven, meaning it does not engage in needless risky day-trading or unnecessary transactions but rather focusses on intelligent, metric based decisions for the best possible portfolio yield.
Use of risk aversive options .
Selling Puts or Covered calls to generate extra yield on a weekly basis depending on the signals.
Daily portfolio performance metrics reconciliation to track and evaluate portfolio performance.
As a managed portfolio client you will be able to see your portfolio transactions on the MarketsFlow platform and our brokers interface (Interactive Brokers or Schwab depending on your account) as well as the overall performance of your portfolio on a weekly basis.
Please see our FAQ section for information on the difference between our Growth and High Growth Portfolio construct, set-up process and trading instrument specific information.
Our Fee Structure:
Our fees are simple, extremely competitive and transparent. Every client that signs up to the MarketsFLow Managed Portfolio service receives a copy of our Investment Management Agreement with all the information and disclosures.
|Total Invested Amount||Fee Rate (per annum)|
|£5,000 - £500,000||1%|
|£500,000 - £1M||0.85%|
|£1M - £5M||0.70%|
|Portfolio Perfomance Tier||Perfomance Fee Proportion (per annum)|
|From 7% - 15%||10%|
|From 15% - 23%||12%|
|From 24% and over||20%|
Example of a 100,000 portfolio set up on the MarketsFlow platform performance inclusive of fees on a monthly basis over a year:
|Starting Account||Returns including trading costs (1% Monthly)||Total returns||Managment Fees||Total Returns incl Mngnt Fees|
The performance fees for the year will be: £112,676.43 – £7,000 (@7%performance) = £5582.54 => £5582.54 x 10% £558.25
The performance charges are calculated for returns above 7% hence the £558.25 figure.
There are no further costs associated for trading as the performance returns already include the trading costs.
On average, we will run no more than 14-20 trades in a month, but as mentioned, they are included in the performance.
So this would be how the total costs would end up for the year: (Total returns) £112,676 – (1% management fees) £1,267 – (performance fees) £558 = (Returns net of fees) £110,851
They will need to configure your account to the portfolio of your choice (Growth Portfolio or High Growth Portfolio) and start constructing your stocks and shares portfolio according to the MarketsFlow buy and sell signals - which are in turn dependent on the market conditions.
The MarketsFlow High Growth Portfolio has slightly higher volatility than the Growth Portfolio, therefore the performance can be higher - please refer to 2018 performance for comparison
The allocation of stocks for ISA portfolios is still resulting from the underlying buy signals, including the position sizes which are determined by the signal strength.
Therefore, the resulting potential extra performance is not available on ISA portfolios.
As the MarketsFlow platform assesses the market environment on a number of levels, it will suggest the most optimal trades and trade volume for the size of your portfolio investment to yield the optimum returns.
As the market conditions vary, you will notice increase or decrease in activity dependent on the platform signals. During some periods your portfolio might not be invested at all or not fully invested due to market conditions and MarketsFlow risk mitigation
It is normal at times to be allocated only a proportion of your capital, we will be varying the invested amounts depending on the amount of funds in your account and on the platform.
By having lower or no allocations at times, your portfolios will not be compromising on performance.
Also, the activity and trades are adjusted to the investment size of each account.
I’m in the process of indicating that I do not have trading discretion (direct or indirect) over this account, which is what MarketFlow will have. This will decide whether each trade will require prior approval or not with my current company. As such, Compliance are likely to ask for the advisory agreement in place.
Yes, that is correct, the Investment Management agreement states the discretion MarketsFlow will have over managing trades on the account.
Then our portfolio managers will allocate the desired proportion as you instruct us (eg 40K Managed and 10K ISA) to the relevant trading portfolios.
You would only need to transfer the complete sum of funds for both Managed Portfolio and ISA to your Interactive Brokers account and instruct us on how you would like to split the amount.
1. Is it long only, or long/short?
It is long only.
2. What is the expected turnover (single sided) per month?
It depends on the signals generated on the platform but on average we may be transacting 20-25 times, this can obviously vary depending on the market conditions.
3. Are the presented performance figures net of transaction (and market impact) costs?
The figures presented are net of transaction cost.
4. How many stocks are in the portfolio typically.
The portfolio construct has about 20-23 stocks which dynamically change depending on the market conditions.
5. What is the weighting scheme of the stocks (market cap weighted / equal weighted or other weighting scheme)?
The allocation of the portfolio is determined dynamically on a daily basis, we have signals to ensure that depending on the (signal)strength position sizes and weighting is configured. As this is a dynamic process and is determined depending on the current holdings, we do not apply a static process driven weighting structure, the platform generates optimum weighting based on the existing holdings and signals. For example, it may well be that at any given time we only have 60% of the portfolio invested with each position size no more than 10% of the portfolio.
6. What kind of stocks (worldwide/developed markets/certain industries or other?)
The High growth Portfolio consists of S&P based mid-caps across different industries but generally higher beta stocks. As long as the stock meets the conditions of high growth metric, it is included in the construct, however there are caps of no more than 40% from one industry.
7. What is the minimum market cap of the stocks traded?
The minimum market cap for High Growth Portfolio stocks is 12B.
8. On what basis are the stocks selected, on what characteristics?
The stocks are selected by the platform dynamically as long as they exhibit certain beta characteristics over a recent period, along with alpha potential, they must exhibit group leadership, upside reversion, and generally be in a momentum industry/sector. The system looks at other proprietary characteristics like momentum behavior over a certain period.