FAQ

What is the minimum investment?

The minimum investment is only 10,000 USD. Accounts over 100,000 USD also get access to a financial adviser for free, so you can find out more about our tax optimisation strategies, estate planning for your heirs, reducing inheritance tax, effective pension strategies and financial planning

How do I get started?

Simply contact your advisor or send an email to support@imhudsonjames.com.

We will then set up an Interactive Brokers account for you and send you our 'Client Agreement' which appoints us as your investment advisor.

How do I transfer money to the account?

You can wire money in or transfer money online from any bank account or brokerage account you already hold.   

Do you charge for an initial consultation?

No.  We will perform a free, no obligation review of your existing portfolio if you invest over 100,000 USD.  We will conduct a full analysis of your current holdings, highlight strengths & weaknesses in the portfolio, and offer suggested courses of action.  This is usually an excellent starting point and can provide you with a valuable comparison to our services.

What currencies do you accept?

You can invest with any currency, but the strategy is invested in US Dollars, so your currency will be automatically converted to USD at near to spot exchange rates on entry. You can exit to any currency and to the bank of your choice.

Click here for more info on 'currencies' and 'how to get the best exchange rates'

How can a payment be made from my bank account in the most cost effective way?

You can either use your own bank and transfer money in your sending currency and we will convert for you at near spot exchange rates.

Does Hudson James Investment Management (HJIM) have access to the money in my account?

No, HJIM only has the ability to trade securities in the account. HJIM is paid a management fee from the account based on the fee structure outlined in the 'Client Agreement'.  We have no other access or authority to access any funds in your account.

Are returns guaranteed?

Your investments will depend on movements in the price of the ETFs you hold. It is quite normal to have two consecutive losing months followed by significant gains in the next few months. Every year for the last ten years, the strategy would have made double digit returns. You need to allow the strategy at least one or two calendar years to work to see the best results.

Where will monies be wired to?

Monies are wired from your bank account to Interactive Broker’s clearing bank, Citibank in NYC, USA if investing in US Dollars. Please send us an email with regards to other currencies.

Are my investments protected?

Your investment is held with Interactive Brokers which means your investments are protected by the Securities Investor Protection Corporation (SIPC).

It covers the ETF’s that will be held in your account for up to $500,000 and up to $250,000 for any cash in the account. Interactive Brokers have also taken out an excess SIPC policy with Lloyds of London for up to an additional $30m (with a cash limit of $900,000) subject to an aggregate of $150m. 

How will buys and sells be recommended / executed?

ETFs are ranked and selected from a pre-programmed algorithm. Trades will be placed on the first or second day of each trading month. Trades are placed typically once per month.

How does the account opening work?

You complete the application forms online and once accepted, you can then transfer funds to the clearing bank for Interactive Brokers, Citibank.

Please click here for more info and a video explantion - 'transferring money to my account'

How do i check on the value of my investments?

You will be given a secure login device and a password.

If Interactive Brokers is holding all monies in separately named accounts (different for each client), how can Hudson James actively manage the account every month?

This is done through the creation of a model portfolio. Each client will hold a different allotment of shares depending on the amount invested, however each client will hold the same percentage. This way, each account is segregated and ring-fenced.

How does the 'Actively Managed US Dollar Account' work?

Hudson James Investment Management activley manges your money by setting up a model portfolio and rebalancing it on a monthly basis. It ranks many ETFs depending on a number of set parameters and then chooses the ETFs with the best chance of making returns for the following month. This is a highly liquid and transparent strategy in US Dollars. You can cash out at any time with no penalty or fee to leave. You just pay the minimal wire transfer fee and funds are deposited back in your bank account.

What are ETFs?

ETFs are Exchange Traded Funds which are normally based on an index of a basket of securities, for example it may track the S&P500, the 500 largest companies in the USA.

Indexing is a fund management technique that seeks to deliver the performance of an underlying index by passively tracking a group of securities within an index. ETFs are a low cost way of easily trading an index. Since so few mutual fund managers can beat an index, this has led to ETFs growing in popularity.

What sectors and asset classes do ETFs cover?

ETFs provide access to a variety of asset classes and sectors. For instance, on the equity side, ETFs provide exposure to specific sectors (e.g. financials, utilities, consumer staples and energy), and on the fixed income side, ETFs provide exposure to specific maturity ranges or segments, as well as corporate bonds, US treasuries and emerging bonds. There are also ETFs which provide exposure to the amount of volatility in the market. 

By using a unique system to rank these ETFs, we can follow the smart money.

One advantage of ETFs is that they provide investors access to markets that are otherwise not easy to gain exposure to.

How popular are ETFs?

In July 2003, ETF assets in the US alone stood at $155 billion. By 2013, ETFs worldwide have grown to more than $214 trillion in size. This growth has far outpaced the growth of traditional mutual funds.

How are ETFs similar to mutual funds?

Both ETFs and mutual funds have the legal status of “open-ended mutual funds”. They both provide instant diversification and the ability to gain access to either broad or targeted exposure. As large pools of funds, they benefit from superior pricing in terms of trade executions.

How do ETFs differ from mutual funds?

ETFs tend to passively track an index whereas most mutual funds are actively managed. The fees for ETFs are often lower than mutual funds as well. Actively Managed ETFs combine the attractive structural attributes of ETFs with active portfolio management. ETFs overall enjoy significant cost advantages over mutual funds, and provide superior transparency as well as greater tax efficiency in general.

What are actively managed ETFs?

Actively managed ETFs, instead of passively tracking indices, have portfolio managers who actively select securities in order to attempt to secure higher investment returns. The fees associated with these ETFs are higher than those of passively managed ETFs, but compare favourably with those of mutual funds.

Are ETFs guaranteed or insured?

There seems to be little risk of abuse of the ETF structure as an investment vehicle. In the US, the Securities Exchange Commission (SEC) thoroughly examines any application to create an ETF, and only large and closely watched firms are allowed in on the creation and remption process of ETF certificates. 

 

Please click here to set up a free account with our roboadviser, themoneypouch.com and answer the short risk questionnaire. Thanks.