Over the past week, we have introduced a new service to investors --- FSM Managed Portfolios. The FSM Managed Portfolios serves as a one-stop portfolio solution, seeking to relieve the burden that investors often face when investing and help investors to navigate the portfolio through the financial landscape in hope to achieve optimization in terms of risk-adjusted returns.
With the FSM Managed Portfolios being a newly launched service, it is no surprise that investors might have some questions on it. We have compiled several common questions that we have been receiving on our end since
FSM Managed Portfolios has been launched, along with our responses to it.
Q1: Can we do top up/ partial sell or RSP at this juncture?
At this current stage, top up/partial sell and regular savings plan (RSP) are not available. For now, investors can only perform full buy and full redemption, subscribing into a single portfolio per account basis (we understand that it is not the most efficient way). The FSM team is working vigorously to enhance the system to allow for these features. At the meantime, while we are working on system enhancements, investors can take this opportunity to observe the portfolios first during this timeframe, before they decide to add on more investments when the features are set to be available for investors.
Q2: How often will rebalancing be done?
FSM Managed Portfolios will be rebalanced at least once a year, during the end of the calendar year. This serves as a form of risk management, to ensure that the portfolio’s allocation does not deviate too significantly from the intended target. However, there is no routine schedule (eg: monthly, quarterly, etc.) for the Portfolio team to perform the rebalancing act.
At any point of the time following adverse or favourable market conditions, the Portfolio team may perform a rebalancing on the various portfolios if the market conditions have resulted in the portfolios’ allocations deviating significantly from the target asset allocation.
In all, instead of a periodic regular review and rebalancing, the portfolio team will be making changes to the portfolio as market conditions warrant.
Q3: Will switching of funds incur additional costs for investors?
There will be no cost for any transactions done by the Portfolio team. For example, if the Portfolio team performs any fund switching or addition of equity funds into the portfolios, investors will
not need to pay any fee (eg: sales charge) on it.
Apart from the initial subscription fee (one-off payment) and annual portfolio management fee (0.5% per annum on the overall portfolio value), no additional charges will be incurred.
Q4: What will be the treatment for the distributions of the underlying funds within the portfolios?
All distribution of income (if any) for the unit trust funds held in the portfolios, will be reinvested in units of the relevant fund through subscription by the Portfolio team.
Q5: Where can I check on the performance of my portfolio?
Investors can check the performance of their subscribed portfolios under “My Investment Holdings”, at any point of the time throughout the day. Any profit/loss percentage reflected on the “My Investment Holdings” page is net of subscription fee and portfolio management fee. Portfolio management fee will be deducted in the form of units of the best performing fund in the portfolio; this will be done on a quarterly basis. For more information on the calculation of Portfolio Management fee, please visit the FAQ.
In addition, a monthly statement will also be sent out to investors, detailing the information regarding the performance of the subscribed portfolio and the underlying fund holdings, along with the actions that the Portfolio team have made (if any) for the portfolio over the month.
For a hassle-free investment approach, try FSM Managed Portfolios
New investors can utilise this service whilst they find their feet in the investment world, while experienced investors can treat the FSM Managed Portfolios as a core holding in their investment portfolios, utilising other unit trust funds (single-country funds, thematic funds, high yield bond funds, etc.) or even individual bond papers to express their tactical views, which can be fit into the supplementary part of their portfolios.
For investors that have queries or require additional information with regards to the FSM Managed Portfolios, kindly approach our friendly Client Investment Specialists at 03-2149 0567 (KL), 04-640 1567 (Penang), or 07-300 6098 (Johor).
FSM Managed Portfolios page
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