FAQ - Frequently asked Questions

• What is a managed account?

A managed account is a legal framework which describes the relationship between the investor and a trader. The trader or a specialized company receives from the investor a limited power of attorney for conducting trading transactions. Unlike mutual funds, for example, a managed account is not a collective investment, in which the investments of many investors are pooled. The investor is entitled to dispose over his account and deposits. For example, he may at any time press the emergency brake and remove the trader, the trading power of attorney.

• How does a managed account work?

MAVEST is not entitled to accept capital from investors. MAVEST or employee MAVEST will therefore never require a payment from investors to MAVEST. The money in the account is paid to a specialized partner (in currency trading at DUCASCOPY) or collateralized by securities. Our partner carries out the inspections required by the Swiss legislators, for example of the identity of the payer. Also checked by the partner of MAVEST is the presence of the necessary trade powers.

• What advantages are offered by a managed account?

Investors in the MAVEST MANAGED ACCOUNT can rely on maximum transparency. The separate account can be viewed around the clock. The investors have full control. The investor can track all trades conducted online and receive a daily list of every trade. Each month, for example, when calculated from DUCASCOPY, the owner of the account is informed according to the contract resulting commissions.

• Are there any performance advantages from investing more money?

It does not matter whether you put a million euro or EUR 50,000 in the MAVEST MANAGED ACCOUNT. Each investor at MAVEST receives the same performance. Through the use of modern technology, the trades and their results are equally distributed among various accounts. The key word is PAMM. This stands for Percent Allocation Management Module. MAVEST uses such a PAMM to serve the many accounts of clients simultaneously and equally. For more information, visit: www.dukascopy.com/swiss/english/management/solutions-for-money-managers/asset/

• Which costs will be charged to investors, and when?

For newly invested capital there is an initial fee. MAVEST also receives a percentage fee, which is based on the difference to the old highs. This scheme is called high water mark. Billing is once a month. This concept ensures that MAVEST only receives new fees when the traders reach new highs. Once provisioned, highs never count again. The calculations are made by a third party company.

In addition to the performance fee, management fees are related to the trading costs which are charged to the investor's account immediately at any trade action. This item includes the trading and the management fee of MAVEST.

• How can investors be sure that MAVEST traders are on investors’ side?

There is no better protection from abuse than self-interest of traders. This is backed up by performance-based commission agreement. Many large investment firms try today only to get as much capital "under management" as possible. The traders of MAVEST stand to their performance and try to protect the capital of the clients as well as possible.

• Should everybody open a MAVEST Managed Account?

Basically, anyone can open a MAVEST MANAGED ACCOUNT. It should be noted by investors, however, that the solutions offered are speculative investments. This is especially true for the forex trading. Investors should be aware of their own capital situation. Under no circumstances should an investor invest all his capital in a capital concept - not even in the MAVEST MANAGED ACCOUNT. Diversification into different concepts, securities or strategies is always recommended. Investments using credit should be avoided. In the MAVEST MANAGED ACCOUNT, leveraged capital instruments are used, resulting in high risks. Readers of this website are advised to read the DISCLAIMER.

• What is the idea of the absolute return approach?

Most investors know the absolute return approach from hedge funds and alternative investments. Instead of large volatility it aims for steady profits. The trader is not based on an index. Behind the concept is a sensible idea: Mathematically, it is better to make steady gains than to allow large up and downs in capital. A loss of 50 percent for example, requires a 100 percent catch-up to get back to the original level.

• What does the MAVEST CORE approach mean?

The MAVEST CORE approach is a development of absolute return approach. CORE stands for Constant Return. That describes the objective of MAVEST traders: A high trading frequency and the control of every trade gives him the possibility to achieve steady capital appreciation in the account. For example, the trader uses methods of money management like stops and targets per trade. Trading strategies are considered speculative transactions that cause very special risks for investors. MAVEST recommends reading the risk information on this website.
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