ALPHA DAY MANAGED ACCOUNT

Transcription

1 ALPHA DAY MANAGED ACCOUNT

2 About Us Logic Investments is an independent advisor providing stockbroking and investment management services to private investors, pension trusts and corporations. Our approach is client focused: we provide tailored and objective investment advice and investment management services to help our clients achieve their investment goals. We strive to provide our clients with a high level of service that is built on trust and fairness. CONTENTS Alpha Day Managed Account Meet the Head Trader Execution of Trades Live Performance Eligibility & Account Opening Glossary of Terms Risk Disclosure & Performance Disclaimer Statement Frequently Asked Questions The material in this brochure is aimed at Professional Clients including Financial Advisers. It is not aimed at, and must not be relied upon by, Retail Clients. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your independent financial advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The value of any investment can fall as well as rise; you may not necessarily get back the amount you invested. Past performance is no guarantee of future performance. Trading in derivatives such as Contracts for Difference or Spread betting may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment and in some cases you may be liable for a greater sum than this. Extended runs of losses as well as profits can occur. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. This is neither a solicitation nor an offer to acquire or dispose of any investment or to engage in any other transaction. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this brochure. The past performance of any trading system or methodology is not necessarily indicative of future results. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR- OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS BROCHURE.

3 Alpha Day Managed Account Logic Investments utilises a diverse range of trading strategies from our team of experienced traders and reseach analysts. Our Alpha Day Managed Account offers Clients exposure to the major indicies, FX, and Commodities. Head Trader Steven Ruffley has traded on behalf of clients on some of the biggest trading floors in Europe and draws upon his vast experience and technical skills to provide this strategy. The Alpha Day Managed Account uses InterTrader Direct - a market neutral platform provider using 100% hedging policy, which means they never trade against their clients. They provide direct market access and deep liquidity. WHAT IS THE OBJECTIVE? Utilising our vast and diverse expertise, market knowledge and experiences, the investment managers objective is to strive to achieve consistent, sustainable profits in different market conditions whilst limiting downside risk to the client. WHAT ARE THE BENEFITS? Trading Features: Diversified Multi Asset Trading Indices, Commodities and FX Maximum of 20% Monthly Drawdown Scalable and Liquid *Tax Free Profits Account Features: Transparency of Every Trade Online Account View Access Account may be closed with no redemption fees or penalties Zero management fees Zero Sign up fees 25% + VAT Quarterly Performance Fee Charged Risk Disclosure Spread betting involves substantial risk of financial loss and is not suitable for all investors as it carries a higher degree of risk. You may lose all of your initial investment and in some cases you may be liable for a greater sum than this. *Tax Laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

4 Meet Head Trader Steven Ruffley Steven has been involved in the finance and trading arena for over a decade. From investing for HNWI s at PriceWaterhouse- Coopers, trading his own account, mentoring & the risk management of traders at Refco to running the live trading floor at Schneiders. When it comes to trading there is not a lot he has not done. Steve has run the trader education programme at InterTrader.com for several years, developing structured webinar courses to help traders identify and maintain their trading edge. The Trading For Life course developed by Steven is one of the most highly regarded on the web. This five module course covers all the key areas from planning and analysis to entering and exiting a trade. Steve also runs live trading sessions, including coverage of key market data releases such as the US non-farm payroll, and a number of interactive trading clinics where he identifies opportunities and trades in real-time with his own money.

5 Execution of Trades The managed account works as follows: 1. The client opens an account with InterTraderDirect 2. The funds are held in an account owned and controlled by the client 3. Logic Investments links the account to a Multi Account Manager (MAM) 4. The MAM is traded by the team, and the trades are mirrored in the client s account RISK MANAGEMENT The Alpha Day Managed Account is a high risk strategy that involves significant leverage, we operate a strict risk management system which includes no overnight risk. In addition there is a maximum monthly drawdown limit of 20% of the account value; valued from the start of each calendar month. The Risk Management Team at Logic Investments are constantly monitoring the account to enfoce the risk management rules. All trades are executed by an approved person at Logic Investments, the FCA approved Investment Manager. The client will go through an extensive KYC (Know Your Client) procedure to assess their suitability for the managed account service. The investor will open an account with a designated broker, InterTraderDirect, via Logic Investments. The investor will then provide a Power of Attorney, enabling Logic Investments to place trades on the designated account. Access to the funds are subject to terms and conditions specified in the contract between Logic Investments and the investor.

6 % TIME-WEIGHTED RETURN Live Performance 8.29% AVERAGE MONTHLY RETURN PROFIT FACTOR SHARPE RATIO From April 2015 the Alpha Day Managed Account has achieved a positive return of 31.29%. To date the average monthly return is 8.29%. Out of the 306 trades executed 189 (62%) were profitable trades. PERFORMANCE FEES The Alpha Day Managed Account service charges a 25% + VAT quarterly performance fee. In keeping with standard practice in the industry, Logic Investments receives up to 1 point spread rebate for Indices, commodities and bonds and up to 1 pip rebate for FX in relation to client trades. The Alpha Day Managed Account strategy trades a broad range of markets on our client s behalf. Our unique strategies are very active and include scalp techniques. The aim is to execute an average of 5-10 trades a day, or around trades per month. The average trade length is around 20 minutes and all open positions are closed by the end of the trading day. Note: YTD figures are a Time-Weighted Return (TWR). TWR measurement is required by the Global Investment Performance Standards published by the CFA Institute. Its distinguishing characteristic is that cash inflows, cash outflows and amounts invested over different time periods have no impact on the return. The performance fee is only payable to the extent that the value of the account exceeds the high water mark, i.e. the highest valuation achieved at any previous relevant quarterly period end. The high-water mark ensures that we do not get paid large sums for poor performance. Performance Disclaimer Statement HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS AREA OF THE BROCHURE.

7 Eligibility & Account Opening ARE YOU ELIGIBLE TO INVEST WITH US? The law pertaining to Managed Accounts is strict, in order to protect the investor. If you are considering investing assets with Logic Investments, you need to undertake a procedure known as KYC. This is an extensive questionnaire designed to check your suitability for the service. The minimum investment size is 10,000. We are required by the FCA s Rules to obtain detailed information about your investment objectives, knowledge and experience and financial situation so that we can assess your suitability for the service. ACCOUNT OPENING PROCEDURE Assuming that you pass the KYC Suitability Test the account opening procedure is as follows: 1. Client signs Professional Opt Up Form 2. Client completes the Designated Broker (InterTraderDirect) account opening form 3. Client signs a P.O.A. with Logic Investments 4. Client signs Logic Investments Alpha Day Managed Account Customer Agreement 5. Client signs Logic Investments Alpha Day Managed Account Strategy Mandate form 6. Client receives a letter from Logic Investments warning client of protections lost when opted up to a professional client and signs to confirm

8 Frequently Asked Questions Glossary of Terms Opt Up Voluntary process by the client to ask for a change of client categorisation. This may be refused and is at the discretion of the investment manager to allow a change of client categorisation. Designated Broker A broker is the provider of a trading account. Brokers act as agent working on behalf of clients to buy and sell the instrument. Investment/ Deposit The amount of funds invested in to the managed account program. Currency Any form of money issued by a government or central bank that can be used as legal tender and a basis to trade. Drawdown The effect of negative open positions held within the managed account. This is a paper loss unrealized until the positions have been closed. Forex Foreign Exchange Currency Trading. Investment Manager (Logic) Logic Investments Ltd Registered offices at Portman Square, London W1H 6HN Leverage Leverage is a loan facility provided by the broker which enables larger trades to take place without any physical borrowing. It means that only a fraction of the capital on deposit is required in order to place a trade. This is known as trading on margin. Long position A position taken with an anticipated rise in price where going long is the equivalent of buying an instrument. Managed Account A managed account is a trading account in the name of the investor being managed through a power of attorney agreement between the investor and the investment manager. Managed Account Balance The current investment capital being held on deposit with the broker. Margin The capital held in a trading account used as security for leveraged trading. MAM Multi Account Management, this is a software system which allows money managers to manage multiple trading accounts on one trading platform. KYC Know Your Client Questionnaire - enables the Investment Manager to assess client suitability in the said product. Stop Loss A pre-defined buy or sell order designed to close a trade, if the initial position has moved against you by a pre-set amount; designed to limit losses of a trade. Stop losses are not guaranteed. P.O.A Power of Attorney that the client gives to the Investment manager to place trades on the clients designated accounts. Short Position A position taken with the anticipation of a falling market also known as going short is the equivalent of selling an instrument. Spread Betting A derivative product of an underlying instrument that allows a client to speculate on the movement of the underlying instrument, either Long (Buy) or Short (Sell). Trading Account An account opened with a broker to enable trading. Trading Platform Software provided by the broker to facilitate analysis, placing and execution of trades. Q. How are the risks mitigated? A. There is a maximum monthly drawdown limit of 20% of the account value; valued from the start of each calendar month. The Risk Management Team at Logic Investments are constantly monitoring the account to enfoce the risk management rules. Q. Is a managed account right for me? A. Logic Investments will not facilitate a managed account for retail clients. If you are unsure about your financial categorisation we suggest you seek independent financial advice. Q. How do I keep informed about my account performance? A. Upon application for a managed account you will receive a read only log in to your trading account. At any point 24/7 365 you can log in to your account to view the current balance. Additionally you will also receive daily performance s highlighting how your account has performed. Q. Can I top up my account? A. The Initial Deposit is subject to a minimum investment of 10,000. Further Deposits may be of any amount, subject to being a minimum of 5,000 and may be made into the Account at any time. Subsequent Deposits become eligible to be used to finance transactions as soon as the deposit is received into the Account. Q. Is my capital protected if the counterparty fails? A. Your Deposits will always be held with InterTrader Direct who handle money responsibly and securely, and their innovative guarantee from parent company bwin.party ensures that your funds are guaranteed in full. To ensure complete protection and security, all client money is held in segregated accounts (entirely separate from other InterTrader Direct operational funds) with RBS, which has an A credit rating from Fitch. Q. Can I withdraw funds? A. Notice of withdrawal from the Account or closure of the Account may be given by you at any time in which case all positions (or in the case of a partial withdrawal the necessary positions) will be closed down on the same day, or exceptionally if we in our absolute discretion believe it to be in your best interests, within 5 business days including the day that notice is given. Payment to you in respect of any withdrawal from the Account or closure of the Account will be made not later than one week after notice of the withdrawal or closure is received by Logic Investments. The performance fee is only payable to the extent that the value of the account exceeds the high water mark, i.e. the highest valuation achieved at any previous relevant quarterly period end. Withdrawals may be made of any amount, subject to the minimum value for an Account, 10,000, being maintained. In the event that you request a withdrawal which would reduce the value of the Account below this level, we may at our discretion, choose to close all positions on the Account and terminate this Agreement. Q. How do gains affect my tax situation? A. Under current UK tax law, profits from spread betting are exempt from capital gains tax (provided spread betting isn t your main source of income).* *Tax status depends on the individual circumstances of each client and may change in the future. If in doubt please seek professional advice.

9 Contact Us London Office Logic Investments Ltd Portman Square London W1H 6HN United Kingdom Tel: +44 (0) Dublin Office Logic Investments Ltd Clifton House Fitzwilliam Street Lower Dublin 2 Ireland Tel: Risk Warning The value of shares and other financial instruments can fall as well as rise; you may not necessarily get back the amount you invested. Past performance is no guarantee of future performance. Trading in derivatives such as Spread Betting, Contracts for Difference (CFD) or Foreign Exchange (FX) may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment and in some cases you may be liable for a greater sum than this. Extended runs of losses as well as profits can occur. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. To read our full Risk Warning please visit: Logic Investments Ltd is Authorised & Regulated by the Financial Conduct Authority (516459) and is regulated by the Central Bank of Ireland for conduct of business rules.