MANAGED FX FUNDS/ACCOUNTS
ApolloFx is fully dedicated to seeking out and securing access to what we believe to be the highest calibre of superior investment opportunities in the FX markets; and bringing these opportunities to our clients. We have dedicated a section of this site exclusively on the topic of Managed Forex Trading, including details on what it is, how it works, and the benefits. A We work long and hard on bringing unique types of trading programs from idea to market in such a way that almost everyone can participate in them. This includes many long and hard hours of analysis, negotiations, testing, auditing, structuring and working with traders and brokers to wrap these up into finished products. We will only put our name on products that we stand by 100%, and only ones that are time tested, stress tested, and stand the chance of producing long-term, safe, and stable profits. We are not interested in recycling programs, or making a quick buck. Our business model is one focused almost exclusively on longevity.
A All of our programs are transparently displayed, and in most cases we provide 3rd party audited CPA results, our own detailed performance analysis, prospectuses, and in many cases live forward tracking functionality. Our goal is to make it very easy for clients to be able to see and understand what each trading program is about, and how it is performing.
WHY MANAGED FX FUNDS
Managed Forex Accounts are perhaps one of the best possible way to participate with professionals in the Forex markets. They also offer a good investment structure available today in terms of transparency, liquidity and disclosure .
Self-directed trading in the Forex markets is at best a very difficult proposition. Many Forex investors do not have the time, experience or desire to trade in the Forex market themselves. Being able to follow the market movement 24 hours a day is a very essential part of the trading. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own.
In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day. The managed account only holds your currencies and allows you to follow a cost-basis for each of the currencies in your account. Based on your long-term goals, risk tolerance and time horizon; you can select a professional currency manager with a managed account that can actively manage your portfolio. Whether you’re interested in a conservative or aggressive program, we can assist to find the best product that will suit your risk parameters.
Account Types and Fee Structure
All Managed Account products employ the High Water Mark structure (HWM), which is in our view a fair structure available between money managers and their investors. Â Different fee structures are quite often available for different products and participation levels.
Our Managed Account Products are typically geared towards 4 different categories of investors and audiences, each with different goals, and expectations in mind. A While this is often unique to every individual, our aim is to produce products that cater to a wide range of clients (or which can be customized to as such).A The participants that fall under these categories are certainly not all the same, however, generally speaking in the industry the following attributes characteristically apply to the following groups of investors;
|RETAIL||New to investing. Small amount of risk capital to speculate with.||New||To speculate, hedge, learn, and obtain aggressive profit targets.|
|ECP (PROFESSIONAL)||Usually familiar/experienced with alternative markets. Have a larger portfolio in which to allocate funds with.||Moderate||Diversification, exposure, moderate profit targets, and to maximize capital maintenance over profit maximization.|
|INSTITUTIONAL||A person or organization that invest in large quantities or dollar amounts. Institutional investors face fewer regulations because it is assumed that they are more knowledgeable and better able to understand alternative markets.||Moderate – Experienced||To diversify, gain exposure, and reduce overall portfolio volatility by targeting low risk, stable and consistent gains.|
|PROFESSIONAL FUNDS||An investment vehicle that is made up of a pool of funds collected from many investors for the sole purpose of investing in various different markets.||Experienced||To invest the Fund’s capital and attempt to produce capital gains and income for the fund’s investors, as per the investment objectives stated in it’s prospectus.|
Below is a listing of the various fees per group. This is a general guideline, and it may vary from one product to another, as each program is separate and has its own unique specifications. All fees and charges are clearly indicated however during the sign-up process for each Managed Fund. A Generally speaking, unless otherwise advised the schedule of fees are as follows;
SCHEDULE OF PERFORMANCE FEES AND MANAGEMENT FEES
Generally speaking our fees range between 30-50%. This varies per program and based on the brokerage house they are trading at. All fees are listed on the LPOAs which clients sign when participating with a specific fund.
MFH profit shares with their brokers on an increased transactional fee either in the form of a round turn dollar or per million cost or alternatively on a spread markup. A Average spread markups vary per program and per brokerage and range from 0 - 2 pips. Performance figures reported on the site are gross performances before any performance fees but net/after and transactional fees. These fees may vary from brokerage to brokerage so please contact us for a recommendation on selecting the best brokerage.
ALL OF OUR MANAGED ACCOUNT PROGRAMS EMPLOY THE HIGH WATER MARK (HWM) PRINCIPAL
What is a HWM calculation? This is a common approach to the calculation of incentive fees (performance fees). It means that incentive fees are paid only on NET new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid. This ensures that investment managers receive a performance fee ONLY when they are profitable in a given month.
There are generally two different types of High Water Marks recognized and employed by different asset managers. The NAV HWM (typically used by mutual funds who charge MGMT fees), and the CB HWM (Claw Back a typically used in the managed futures space by traders who do not charge management fees). An example of the CB High Water Mark protocol in which we employ is as follows:
1.) When a Client deposits their initial funds, that becomes the first High Water Mark (HWM). In this example the Client deposits $100,000 USD.
2.) After 1 month the Trader/Advisor produces 10% in gross profit which brings the Client account up to a gross value of $110,000 USD.
3.) $110,000 USD in equity, minus the last HWM ($100,000 USD) = $10,000 USD in new profit.
4.) In this example the Performance Fee is 30%. So 30% of $10,000 USD new profit is $3,000 USD Performance Fee (PF) which is payable to the Trader/Advisor.
5.) After paying $3,000 USD PF to the Trader/Advisor, the Client retains $7,000 USD of the profit. His account balance after paying the Performance Fee is $107,000 USD, which is then reset as the new High Water Mark for the following month..