Easy Saver Portfolio Issuer: MWF Financial Limited Available in US Dollars
Contents 1. Portfolio Overview 2. High-Frequency Trading at a Glance 3. How is the Return Calculated? 4. Portfolio Holdings 5. Important Points to Note 6. Considering This Portfolio 7. Past Performance Indicators 8. Management Fees 9. Terms and Conditions 10. Schedule
Please take the time to read this brochure carefully and thoroughly, including all of its terms and conditions. Information included in this brochure does not constitute legal, tax or investment advice and should not be interpreted as a solicitation of investment from jurisdictions where MWF Limited has no legal right to do so. If you are unsure about the contents of this brochure, or this portfolio’s suitability towards your needs, you should seek advice from an accredited advisor or another investment professional.
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1. Portfolio Overview
Summary
Repayment of Capital
The Easy Saver portfolio is a flexible, low-risk investment option
This portfolio does not have a fixed term. However, withdrawal
aimed at investors looking for short-term placements that earn
of capital is restricted in the first 30 calendar days following
better than average returns, while retaining the flexibility of a
the initial investment. Any subsequent addition to the portfolio
savings account.
will trigger a new 30 calendar day restriction on withdrawal of capital. A premature withdrawal fee of 25% will be levied on
This portfolio utilizes high-frequency trading techniques while
any capital withdrawn prior to the end of this restriction. Upon
following the upward market trends of 15 U.S. large-cap
the 31st day, following investment, capital can be repaid in full,
stocks. All assets are liquidated at the end of the business day.
without penalty.
At the end of each week, all daily gains are summed up and you will accrue a return equal to your portfolio’s performance for that week.
Reinvestment of Return This Easy Saver Portfolio allows you to reinvest your returns
Potential Return
back into the portfolio. Reinvestment levels can be set at either 25, 50 or a 100%. Reinvestment of your returns has the potential
The Easy Saver portfolio follows upward market trends of 15
to boost your aggregate returns by as much as 40%.
carefully chosen U.S. stocks. The sum difference between opening and closing quotes of the stocks the portfolio is composed of will be translated into daily returns which are paid
Minimum Guaranteed Earnings
into the investor’s current account at the end of each week. In the case where the sum difference between the opening
This portfolio guarantees minimum earnings of 2% per week.
and closing quotes equals zero, or in a case where the sum
Minimum earnings are paid in case portfolio earnings for a
difference is negative, no profit or loss will accrue for that
given week are less than 2%.
business day. The total return is calculated by the issuer at the end of each week and posted to your account on Friday at 18:00 Eastern Standard Time. Due to extreme market volatility in the last moments of trading some assets are liquidated before the closing quote has been set. Therefore, a marginal discrepancy between published and actual figures in aggregate weekly returns can occur.
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2. High-Frequency Trading at a Glance Summary High-frequency trading is an innovative investment strategy that allows us to place multiple buy/sell orders on a range of securities during the course of the day. Highly sophisticated software, designed by our in-house IT team, follows market
HFT 26% of all market trading volume in 2006
trends and is able to make informed trading decisions with little intervention from portfolio managers. This strategy allows capital to be invested into securities for no more than a few minutes and therefore risks associated with high-frequency trading are miniscule.
HFT 61% of all market trading volume in 2009
HFT as a Low Risk Investment Strategy There are several reasons why high-frequency trading does not involve the same amount of risk as conventional equity trading. First, firms that utilize high-frequency trading do not
HFT 73% of all market trading volume in 2011
accumulate positions. This means that firms such us ourselves are not exposed to risks associated with market downturns. Second, high-frequency trading does not require firms to employ significant leverage, thereby limiting a firm’s exposure to risks
It is evident that high-frequency trading is becoming more
associated with the inherent instability of equity markets. Lastly,
and more popular among many investment firms. However,
firms engaged in high-frequency trading usually liquidate all their
until recently HFT had remained largely in the hands of small
positions at the end of the day, thereby limiting the risk of losses
investment funds who were in the market mostly for themselves.
that may occur in after-hours trading. Although some large hedge funds utilize HFT for part of their placements, none of the firms currently on the market
HFT’s Rise in Popularity
offer portfolios based exclusively on high-frequency trading. The reason for this is as follows: investment portfolios that
High-frequency trading firms account for 3% of approximately
subscribed over $500 million would significantly influence
22,000 investment firms on the market. The total equity trading
market trends of securities that they would trade, thereby
volume of high-frequency trading firms accounts for 73% of total
defeating the purpose of high-frequency trading strategy.
all-market trading volume.
Instead of following market trends, they would set the trends, thereby making it impossible to profit from their operations.
Limited Subscription Portfolios Our portfolios have limited subscriptions because we intend to remain a mid-size investment firm. It is therefore feasible for us to utilize HFTs exclusively in our investment portfolios, and therefore deliver the advantages of this innovative investment strategy to private and institutional investors such as yourself.
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3. How is the Return Calculated?
4. Portfolio Holdings
Investors are offered 100% participation in a portfolio’s
This portfolio invests in 15 U.S. large-cap1 stocks.
performance. All gains from said portfolios are paid to investors as returns.
98% Large-Cap Returns are calculated by designated issuers at the end of
2% Gold and Convertible Bonds
each business day by subtracting the aggregate value of each stock an invested portfolio trades at the beginning of the trading session, from the value of each stock within the same portfolio at the end of the trading session. No returns will be accrued when the aggregate value of the
Table of Holdings:
portfolio at the beginning of the session is equal to, or less than, that same portfolio’s value at the end of the trading
Symbol
Company Name
session. Daily returns are then tallied and paid to current
BBBY
investor accounts at the end of each week. This portfolio cannot
Bed Bath & Beyond Inc.
DGX
generate a loss.
Quest Diagnostics Inc.
DTV
DIRECTV
HCP HFT strategy is applied during the trading session in this
HCP, Inc.
EPD
portfolio. Managing software, under the careful observation of
Enterprise Products Partners L.P.
NSC
the portfolio managing staff, follows the upward trends of the
Norfolk Southern Corp.
TMO
equities that make up the portfolio. Holdings are then liquidated
Thermo Fisher Scientific, Inc.
ADP
on downward movements and reacquired when stock prices
Automatic Data Processing, Inc.
AXP
have reached the level where managers believe a further rise in
American Express Co.
BMO
stock prices is sustainable.
Bank of Montreal
CAH
Cardinal Health, Inc.
CTL Although HFT would allow this portfolio to yield profits on all
CenturyLink, Inc.
INTC
intraday upward movement of the stocks, our conservative
Intel Corporation
PFE
approach to risk restricts us from engaging in this kind of
Pfizer, Inc.
AZN
AstraZeneca PLC
market-making. 1
With market capitalization in excess of $10 billion
Two percent of each investor’s portfolio holdings is placed in convertible bonds and gold as a reserve to cover any minor losses that may be encountered during trading operations. Income from this two percent is also held in reserve. Investors are not paid dividends according to portfolio holdings at the end of each business day. Investors receive profits only according to HFT returns on trades made during regular trade operations.
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5. Important Points to Note
6. Considering This Portfolio
◆ This portfolio does not take advantage of declining market
To help you decide if this portfolio is right for you, here is a
trends. When markets are down and the aggregate portfolio
summary of some key points you should think about. If in
value is zero or negative, no profit or loss is accrued for that
doubt, contact your accredited advisor for further assistance.
trading day. ◆ Capital is guaranteed only if it’s withdrawal is requested
Yes, this portfolio is right for me because:
after 30 calendar days from the initial investment. The 30 day restriction will begin again if and when any additional
◆ I want to earn higher than average return on
funds are added to the portfolio balance, excepting when
investment by investing into a firm utilizing HFT and
those additional funds are automatically reinvested into the
other modern technological trading methods.
portfolio from said portfolio’s returns.
◆ I am happy to invest with a medium-sized investment firm. I believe my account will receive more attention
◆ Investment portfolios are not guaranteed by a third party. MWF Financial Limited is not a bank, and does not participate in any kind of Deposit Compensation Scheme. Repayment of capital depends solely on the ability of MWF Financial Limited to pay such amounts when they are due.
due to the subscription limits that the company has on its investment products. ◆ I will not need to access my original deposit (capital) within the first 30 days following my initial investment. ◆ I am comfortable with my investment being directly linked to market performance.
◆ Minimum investment into this portfolio is $100. The portfolio
◆ I want my capital to be guaranteed and I want
has a limited subscription. As a consequence, we do not
to be sure that I will not receive less than I
accept investments in excess of $5 million into this portfolio.
originally invested.
Investors who wish to invest amounts in excess of $5 million should contact our Wealth Management team for further advice. Such investment amounts can be accommodated by
No, this portfolio is not right for me because:
other investment products. ◆ I may need to access a substantial part of my original ◆ Income from this portfolio is subject to our standard management fees. Management fees are deducted at the time the income is credited to your account. See the Management Fees Table of this brochure for further information.
deposit (capital) within the first 30 days following my initial investment ◆ I do not trust medium-sized, unregulated investment companies. I wish to invest with a large, known and reputable firm. ◆ I am not comfortable with my investment being directly linked to market performance. I need a peace of mind that comes with fixed returns on investment. ◆ I believe that management fees levied on portfolio income are excessive. ◆ I am not comfortable with investing outside my country.
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7. Past Performance Indicators
8. Management Fees
Please keep in mind that past performance does not guarantee
MWF Financial Limited operates a fair and transparent fees
future results. It can only serve as in indicator of how this
structure. Income earned on portfolios is passed on to investors.
portfolio may perform in the future.
MWF Financial Limited does not retain any part of the income, with the exception of management fees that are fixed for the
Time Period
Return
whole term of the investment. The management fees vary according to the amount invested by the client. Below is a table
30-Jan-2013 – 01-Mar-2013
6.2%
01-Dec-2012 – 01-Mar-2013
14.5%
01-Sep-2012 – 01-Mar-2013
25.7%
Amount Invested
01-Mar-2012 – 01-Mar-2013
107%
Less than $5000
6%
1%
Inception – 1-Mar-2013
142%
$5001 - $25000
4%
1%
Greater than $25001
2%
1%
Average weekly in the year ending 1 March 2013
2.3%
that shows how management fees are calculated: Regular Investor Accredited advisor
As of 10 August, 2012, the average weekly income paid by this portfolio since the start of the year was 1.31%. The figures above are indication of portfolio
Private and Institutional clients pay a flat rate of 2% on income
performance only and do not take into account minimum guaranteed earnings.
received on their investments with MWF Financial Limited.
Terms and Conditions This investment portfolio is marketed and sold through Fleet Mutual Wealth Limited, Hong Kong. The issuer and manager of the portfolio is MWF Financial Limited, Cyprus. 1. I nvestment into the Easy Saver portfolio (MWES) is subject to the general terms and conditions of investments posted on our company website and spelled out in this brochure. This portfolio is open exclusively to current account holders of Fleet Mutual Wealth Limited. 2. I nvestment into the Easy Saver Portfolio constitutes a “private placement” with MWF Financial Limited. By investing, the client does not acquire shares of MWF Financial Limited. Neither does the client acquire shares in other publicly traded companies that constitute part of the Easy Saver Portfolio. 3. By investing into the Easy Saver Portfolio, the client executes an investment contract. The terms of the investment contract include the general terms and conditions and the terms and conditions of investment into the Easy Saver Portfolio. 4. Profits on investment in the Easy Saver Portfolio are subject to management fees, as per the Management Fees Table provided in this brochure. 5. The minimum term of investment into the Easy Saver Portfolio is 30 calendar days. Full or partial withdrawals from the portfolio prior to the expiration of the full 30 day period will carry a 25% early withdrawal penalty. Additional investments into this portfolio are subject to the minimum term, excepting the immediate reinvestment of returns derived from said portfolio. 6. Profits on investment in the Easy Saver Portfolio can be automatically reinvested back into the portfolio. There is no minimum reinvestment requirement on this portfolio. 7. The aggregate value of stocks that this portfolio trades is calculated at the end of each business day. A positive gain in the aggregate value is translated into a percentage gain on investment. The gains on investment are summed up and paid into the client’s account at the end of the week. In cases where the aggregate value of stocks in the portfolio has decreased, no profit is generated for that day. 8. Profits are not accrued for days when stock market trading is disrupted due to public holidays in market jurisdictions or unforeseen events. At times, portfolio managers can interrupt trading operations when markets are extremely volatile and managers decide that further involvement will carry with it an unnecessary amount of risk. 9. This portfolio is available to persons aged 18 years or over and Corporate and Trust clients. 10. I f you reside, or move to a jurisdiction in which MWF Financial Limited is not properly licensed or authorized, MWF Financial Limited reserves the right to refuse your deposit, decline to open an account, or close your account with a 30 calendar day prior notice.
Portfolio
Mutual Wealth Easy Saver Portfolio
Inception date
12 May 2010
Issuer
MWF Financial Limited
Currency
US Dollar
Minimum deposit
USD 100
Minimum guaranteed earnings Capital withdrawal restriction
2% per week 30 calendar days
Early withdrawal penalty 25% of withdrawal amount Reinvestment requirement Reinvestment options
None 25%, 50%, 100%
Charges
Subject to management fees published in this brochure.
Returns
HFT on long positions. 100% participation.
Capital guarantee
100% capital guarantee if no withdrawals requested before 30 calendar days from initial or additional deposit.
11. T his portfolio is not available to persons residing in Cuba, Sudan, Syria, North Korea, Cyprus (Greek), Hong Kong SAR, Liberia and Myanmar. 12. M WF Financial Limited shall inform you of changes to the contents of this brochure and the company website that may affect the terms and conditions of your investment. 13. F leet Mutual Wealth Limited and MWF Financial Limited have the right to refuse any new account applications and/or deposits from clients.
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Fleet Mutual Wealth Limited Wheelock House | 20 Pedder Street Central | Hong Kong Tel. 852-3-9733868 | Fax. 852-3-0159056 Web. www.mutualwealth.com E-mail. info@mutualwealth.com