Personalised Portfolio Program – Invest in US stock market

There is no minimum invest amount for this program.

Yes, you can add to your initial investment on a monthly, quarterly or annual basis.

Yes, you can withdraw funds at the end of each month, giving 2 weeks advance notice.

Clients assets are held off balance sheet.

The funds are traded within the Interactive Brokers platform. Interactive Brokers is a reputable company listed on the Nasdaq. It has over 1 million client accounts with over 2 million daily trades. It has equity capital of $9 Billion and $6.9 Billion excess regulatory capital.

The Sharp ratio can be used to evaluate the total performance of an individual stock or an aggregate portfolio. It indicates how well an investment performs in comparison to the rate of return on risk-free investments. A high Sharpe ratio is good when compared to similar portfolios with lower returns.

Variance is a measurement of the spread between numbers in a data set. It is used to see how much risk an investment carries and whether it will be profitable. It is also used to compare the relative performance of each asset in a portfolio to achieve the best asset allocation.

Back testing assesses the viability of a trading strategy by discovering how it would have played out retrospectively using historical data.  The theory being if it worked well in the past it will possibly work well in the future.

Yes, the fund only buys stocks that are traded on the major US exchanges. We choose to invest in US stock market. However this does not mean that the portfolio is not diversified. Many of the companies within our portfolio are large multi national firms with assets spread across the globe.

We do not withhold exit taxes. We are not tax advisors and recommend that you speak to your own tax consultant.

The high water mark is the highest level in value an investment fund has reached and is used as a demarcation point in determining performance fees that an investor must pay. The purpose is to protect investors from repeatedly paying a fee every time the fund earns a profit.

The Nasdaq  is a basket of the 100 largest, most actively traded stocks listed on the Nasdaq stock exchange. It includes companies from a variety of different industries except the financial industry. Listed stocks need to publicly report earnings quarterly or annually and must have an average daily trading volume of 200,000. Exceptions are made for new public companies with extremely high market capitalisations.

The Standard & Poors Index is a market capitalisation-weighted index of the 500 largest U.S.  publicly traded companies.  It is a float-weighted index which means the company market capitalisations are adjusted by the number of shares publicly traded. It is widely regarded as the best gauge of large-cap US equities.

This is a stock market index is a widely watched benchmark in the US for blue chip stocks. It is a price weighted index that tracks 30 large, publicly owned companies trading on the New York Stock Exchange and the NASDAQ.

It is defined as the total market value of all outstanding shares and it  refers to how much a company is worth as determined by the stock market.  To calculate a company’s market capitalisation, multiply the number of outstanding shares b the current market value of one share. Companies are generally divided in to 3 market cap categories:

• Small Cap – $300 million to $2 Billion
• Mid Cap – $2 Billion to $10 Billion
• Large Cap – $10 Billion or more

A hedge fund is an investment partnership, made up of a professional fund manager or general partner such as Trillium Capital and the investors, such as you, who are also known as limited partners. The limited partners put their investment money in to the fund. The fund is the managed by the general partner on behalf of its limited partners. The experience of the general partner allows them to manage investments and hedge where necessary to protect the investments of the limited partners.

According to Investopedia – Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts. Technical analysts believe past trading activity and price changes can be valuable indicators of future price movements.

It may be contrasted with fundamental analysis which focuses on a company’s financials rather than historical price patterns or stock trends.

The NAV is equal to a fund’s or company’s total assets less it’s liabilities.

A dividend is the distribution of some of a company’s shareholders, as determined by the company’s board of directors. Payments are made by publicly listed companies as a reward to investors. Company’s stock price can decrease or increase depending on the dividend announcement.

Algorithmic trading is a process for executing orders utilising automated and pre-programmed trading instructions to account for things such as price, timing and volume. There are process and rules based algorithms to employ strategies for executing trades.  It makes use of complex formula’s combined with mathematical models and human oversight to make trading decisions.

An ETF or an Exchange Traded Fund is a basket of securities that trade on an exchange like a stock.  The ETF share prices fluctuates daily as it is bought and sold.  There are many different ETF’s available based on stocks, commodities, bonds etc.

Swing Trading involves making a trade that lasts from a couple of days up to several months in order to profit form an anticipated price move.  It exposes a trader to overnight and weekend risk, as a stock price couple gap and open the following morning at a substantially different price.  Swing traders often combine technicial and fundamental analysis when looking for trading opportunities.

Being Long a stock or in a Long position refers to the purchase of a stock – the trader owns that stock.

This refers to a trading technique in which a trader sells a stock without actually owning it.  The plan is to purchase it later – this is called covering a position.  A trader may short a stock if they believe that the price of that stock is going to fall.