Separately managed accounts provide increased portfolio transparency, tax efficient returns and flexible portfolio tailoring. Portfolios tailored to each investor’s unique requirement and requests provide customers with the luxury of choosing to invest in certain securities and economic conditions
Separately Managed Accounts
This is a computer managed investment plan, which allocates the investment in the ratio of 75:25 between PIF (debt fund) and MCB-PSM (equity fund). This plan regularly reallocates the portfolio back to the original ratio between debt and equity investments through automated adjustments, managed by our unique software. Switching takes place whenever the NAV prices of PIF and MCB-PSM record a change of 5% compared to each other from the original prices of investment or the new base prices.
Illustration: If at the time of investment, the NAV prices of PIF and MCB-PSM are Rs.50 and Rs.90 respectively, the adjustment will be made, say if MCB-PSM rises by 6% to Rs.95.4 and PIF rises by 1% to Rs.50.50. Or in another example, MCB-PSM falls by 4% to Rs.86.40 and PIF rises by 1% to Rs.50.50. Each time the price change between the two NAVs reaches 5%, the adjustment is made and a new base price is created for future adjustments. If the relative weightage of MCB-PSM increases due to rising NAV in the booming stock market, the surplus is redeemed and invested in PIF and vice versa. Thus, in Smart Portfolio, the investment in stocks works on a simple premise of buy low and sell high, while eliminating human judgment of when to buy and sell. It cashes in the gains in MCB-PSM, when stock market rises and buys MCB-PSM when the stock market falls.
MCB Funds Smart Trader Account is a convenient means of taking a trading position in the MCB-PSM. The investors shall be able to move in and out of the position at a very low transaction cost. Surplus funds may be kept in the PIF or a non-earning account. The investor need not worry about settlement arrangements, custodian arrangements, or collection of dividends, bonus shares, rights entitlements etc. There is a minimal load to facilitate low transaction costs. An account could be started with as little as Rs. 100,000. Individual transactions may be done with minimum of Rs. 10,000.
Risk Disclosure: All investments in mutual funds and securities are subject to market risk. The NAV based prices of Units and any dividends and returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read sections 4.10 to 4.15 of the Offering Documents for understanding the investment policies and the risk involved.
MCB Funds is offering innovative and customized Portfolio Management Services on Discretionary as well as Non-discretionary basis for Separately Managed Accounts (SMAs) pertaining to individuals and institutions including retirement funds, not-for-profit bodies and insurance companies. The company already manages over Rs. 8 bn under managed arrangement. Suited for High Net-Worth Clients Managed accounts is a solution specially suited for high net-worth individuals who prefer to have their investments actively and proactively managed rather than being a passive investor in a fund. Managed Accounts would create opportunities to access Pakistani capital markets under an advisory arrangement with MCB Funds, which may also include transaction execution and settlement and superior quality reporting to clients. The client can choose to nominate and independent trustee to take custody of the assets.
Specially and Uniquely Managed Individuals can focus on their respective businesses and use the fund managers to manage a portfolio specially and uniquely designed according to ones needs and desire for risk. Such portfolios are under constant review and are actively managed. A detailed report is shared with the investor on at least a monthly basis. This report would include complete portfolio details, update values and any movement that may have takes place in the account.