Frequently asked questions
What is a Managed Discretionary Account (MDA)?
It is an account which is opened by you (the client) with a Futures Broker (We use Saxo Capital Markets (Australia Pty Ltd – Saxo), and managed by us (Nivin investments).
You fund the account, and control the movement of cash into and out of the account. We place trades on the Global Futures market on your behalf, using a strategy which applies mathematical, statistical and probability models which have been successfully and stringently back tested and live traded.
What is a Global Futures Program?
Nivin Investments places long/short orders on selected and liquid Commodity and Index Futures markets around the world.
What Commodities do you trade?
Coffee, Copper, Crude Oil, Index Futures (FTSE, Dax, Stoxx, Russell mini, S&P500 e-mini), Feeder Cattle, Euro Bund, Gold, Palladium, Platinum, Sugar, US Dollar Index, Wheat to name a few, this list changes from time to time depending on market activity.
Is trading Futures Risky?
Depending on how it is managed, trading any type of leveraged product or financial instrument can expose an investor to losses, sometimes larger than the initial amount contributed.
However, the Nivin Investments trading style and money management philosophies ensure a client’s account is only ever risking a small pre-set percentage of the account balance on each trade. So, if a trade does not go in our favour, it would generally be only in one sector and the loss would be kept to a minimum.
Can I lose all my money?
Highly unlikely – The Global Futures Program invest only where supply and demand control the price of the instrument. Obviously the supply and demand is affected by many factors, but whilst ever human beings live on this planet, there will be demand for things such as the products we trade.
The beauty of being a long/short system is that if a commodity or an index collapses, we generally find we are short, and as such, we profit from the fall in price.
Do the Nivin Management team have funds invested in the Global Futures Fund?
Absolutely – we have developed this program using our own funds and have our own money invested in exactly the same trades as our clients.
Can I place trades in my account myself if I want to?
No – you will have a “read only” access to your account – all trading is done by Nivin Investments.
Could I receive a “Margin Call” from Saxo?
Theoretically – yes. Realistically – No. The Nivin trading methodology is such that as an account goes up or down, so does the size (but not the percentage) of the trades. Also, as the size of every trade into each instrument is only relatively small, the overall balance of the account should be sufficient to cover all margin requirements.
What is a “Wholesale investor?
Refer to “WholeSale” section of the website for clarification of this.
Do I have to pay any entry or exit fees?
No. you will need to open an account with Saxo and sign the forms supplied by the licensing entity (Gfin).
You will sign an authority for Saxo to deduct the fees (management and performance fees – see below) from your account on a monthly basis.
What fees do I have to pay?
For Edge1 and Edge2 you will sign an authority for Saxo to deduct a 2% p.a management fee and a 20% performance fee automatically from your account. For Edge3 you will sign an authority for Saxo to deduct a 3% p.a management fee and a 24% performance fee automatically from your account. You sign the authority when you open your account, then sit back and relax. All fees ex GST.
What is a Performance fee?
We charge a 20% or 24% (depending on the EDGE option that you choose) performance fee based on the profits that are generated in your account using the High Water Mark (HWM) system. (Calculated at the end of each month and paid monthly). The HWM is calculated on the maximum account balance taken at the close of the last day of the month. This means you only pay performance fees if your account has grown and you only pay on new profits. For example, (Egde1 or Edge2) if you invest $350k and your account grows to $400k in the first month, you will pay a performance fee of 20% of the $50K which is $10k . That would leave a balance of $390K after performance fees.
You will not pay any more performance fees until your end of month balance account balance exceeds the previous HWM of $390k.
Specialists in High Yield Investments