For many investors who are frustrated with traditional funds, performance based trading strategies where the fund manager or strategy designer is rewarded on the back of their own strong trading performance, is the approach they'd prefer.
However, the reality is that annual management fees are still in place, redemption periods are still rife, and some funds aren't providing the liquidity desired by investors.
Therefore, with a collection of 'performance based strategies' being launched over the last 12 months is the investor about to receive the service (and performance) they believe they deserve?
One such strategy is the performance based Multi Market portfolio designed by The Portfolio Consultancy (TPC) which is structured via a very transparent 'trade copy approach', making it a very accessible vehicle for one to invest into. Today, EFN take a closer look.
'Trade Copying' provides a very different, and some would say- a very refreshing alternative.
In simple terms, an investor is able to align their own portfolio with that of a successful trader or asset manager. The trader/manager will be trading their own portfolio and risking their own capital, and when the trader/manager takes a position in the markets on their own portfolio, the exact same trade is implemented on the investor portfolio per GBP under management automatically.
Probably one of the reason's why this sector in the investment world is gaining the current traction that it is, is because the fees are normally earned via a monthly subscription (which can be switched on or off at any time), or via performance.
Ultimately, the client retains control of their own account at all times, and the investment offers complete transparency.
At first, the market pioneers were companies like Etoro and they aimed their offering at a slightly more novice trader/influencer to build the accounts to follow, but now- the institutions are moving into the market place, and specialist strategy designers are beginning to host their own portfolios.
One of these specialists is The Portfolio Consultancy (TPC), who have launched a number of 'copy portfolios' for investors to follow hosted at various Asset Managers.
The Consultancy in question typically deal with asset managers, hedge funds, and other financial institutions, but they've now entered the world of 'trade copying' which means investors can have exposure to their strategies without the expense and lock in periods associated with vanilla asset manager portfolios.
The Multi Market portfolio launched in 2019 is gaining momentum and recognition in a challenging market climate. From reviewing the composition of their strategies it's clear they offer a very diversified portfolio with this proposition. They provide exposure to worldwide equities, commodities, and the FX arena, and their information sheet suggests the Asset Manager who facilitate the strategy place hard stops on the portfolio to reduce the potential downside. The Asset Manager charges a profit fee AFTER the client has accrued 10% on their flagship strategy and 20% of all profits on their 'half volatility' sister strategy.
With the experts moving into the market place, and offering solid propositions like TPC's performance based multi market strategy- trade copying might just become the investment of choice.
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