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Popular Questions on FSM Managed Portfolios May 31, 2017
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.
Author : iFAST Portfolio Team

Popular Questions on FSM Managed Portfolios

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).

Useful link:

FSM Managed Portfolios page

FSM Managed Portfolios: Why You Should Consider FSM Managed Portfolios?

Disclaimer: In relation to the managed portfolios, investors empower iFAST Capital Sdn. Bhd. (“iFAST Capital”) to manage, pursuant to a pre-defined investment strategy but at the risk of the investors, assets of any kind held now or in the future in an account maintained on a discretionary basis and without the need for the prior consent of the investor. All investments and asset allocations are based on iFAST Capital's expectations of future developments in the financial markets. These expectations may not be fulfilled, and therefore no yield or capital preservation is guaranteed. The risk of investing in certain financial instruments, is generally high, as their market value may be exposed to many different factors, such as the operational and financial conditions of the relevant company, its own growth prospects or the growth prospects of the economy or economies in which it operates, changes in interest rates, the economic and political environment, fluctuations in foreign exchange rates, shifts in market sentiment etc. Where an investment or security is denominated in a currency other than in ringgit, changes in exchange rates may have an adverse effect on the value and price of that investment as well as of the income derived from it. Investors shall be fully aware of the potential risks connected with the managed portfolios and, more specifically, with the chosen investment strategy. Depending on the investment strategy selected, iFAST Capital may invest in different categories of financial instruments, each with their own specific levels of risk. Investors must be familiar with and understand the types of financial instruments in which his/her assets may be invested pursuant to the investment strategy. Investors should be aware that one particular chosen investment strategy may involve a higher degree of risk than another investment strategy, and investments within the managed portfolios’ framework may result in loss of all or part of the investment, though limited to the amount invested. Investors should also be aware that the returns of the managed portfolios that contain investment funds depend not only on the ability of iFAST Capital but also on the ability of the investment manager of the investment fund.