Portfolio management

Portfolio management is a time-tested traditional service in the financial world which ensures mutually beneficial cooperation between a manager and an investor.

The point of portfolio management is that an investor striving to increase investment return delivers their funds to a broker, which is a professional participant of the securities market.

When transferring your assets into management you participate in choosing an investment strategy under which the Company specialists will manage your capital. Our task is to offer the set of investment strategies which are most suitable for the current market and your investment profile. We will consider your desired levels of return and risk, and investment periods. Our managers will consult you and help to choose an investment strategy which is the most appropriate for you.

Types of investment strategies:

• Aggressive liquid strategy. The manager uses highly liquid stocks and derivatives.
• Aggressive mid-term strategy. The portfolio is constructed of liquid stocks, derivatives and second tier stocks.
• Aggressive long-term strategy. Work in promising financial instruments.
• Balanced investment strategy. The riskier portion of assets in managed under one of the aggressive strategies, whereas the conservative portion is constructed of instruments with fixed return.
  

Advantages of Portfolio Management with MRC ltd.

When turning to a manager, an investor receives the following key advantages: feeling secure about their investment funds, confidence that the funds will be placed effectively and spare time which can be spent on other activities. The manager is in charge of the assets placement in the financial market. Besides, it is advisable that you spend some time on learning the basics of market functioning, so that you could understand the management principles.

Another important advantages of portfolio management are:

• Transparency. The broker provides the report on performed operations, explanations and comments to a client as well as advice during the whole cooperation period.
• Risk management. An investor specifies risk to return ratio which seems appropriate to them.
• Professional managers accredited by the Federal Financial Markets Service (FFMS).
• Individual approach and consideration of investor’s desires when selecting and investment strategy.
• Portfolio diversification – allocation of funds in several financial markets and instruments.
• No limitation on the minimum investment period. An investor is entitled to withdraw funds from an account any time (recommended investment period is 1 year).
• Open seminars on investment for the Company clients.
• Availability of service for private investors.
• Quick withdrawal of assets from management — high liquidity of portfolio (under the respective investment strategies)
  

Principles of Asset Management

• Asset management is performed on basis of fundamental and technical analysis. Trade decisions are made on the results of the assessment of the fundamental position of an issuer and mid-term/long-term development prospects, besides growth prospects of stocks are identified. The specific moment of opening/closing a position is determined on basis of technical support/resistance levels, calculation of price references for stock price movements.
• Funds are invested not only in stocks of the largest Russian companies, but also in second- and third-tier stocks with highest growth potential. 
• The manager actively changes portfolio structure depending on market terms and factors affecting the expected results of investors’ activities. In case of positive market dynamics assets are invested in liquid securities which grow at rapid pace. If the current situation in the stock market is unfavourable in the manager’s attention, portfolio structure is changes in favour of corporate bonds, “protective” stocks, and the size of the portion in money form is increased.
  

Objects of Investment

• stocks of leading Russian issuers (“blue chips”)
• second-tier stocks
• corporate bonds
• unit investment funds
• derivatives.
  

The terms for provision of the portfolio management service:

Minimum investment amount – 500 000 rubles.
Management fee – 0.45% quarterly of the invested amount
Performance fee - 21% of the profit

Possibility of changing the investment strategy: once a quarter

Documents

To enter into the portfolio management agreement an individual needs to have an official government ID, such as passport or other similar document.

To open a portfolio management account legal entities need to provide a full set of incorporation/registration documents. For the specific list of the documents required, please, contact the managers of MRC ltd.