We have stated that we conduct our business in a very different way to most players in our industry which is much more beneficial to the client as it aligns our interests with theirs. So, whilst always targeting monthly returns of 2%, what exactly is Alcral doing to justify those claims?
Low Risk Strategy
A conservative, low risk strategy undertaken by a variety of experts ensuring strict adherence to pre-determined risk criteria which are constantly monitored by our risk management team. This is evidenced by our inclusion of a standard Stop Loss strategy of 20% meaning 80% of capital is not normally placed at risk.
The implementation of a Security Reserve balance on the Investor’s account to be used when monthly returns are not as high as expected or if there has been a loss to capital. From opening the account, we roll in part of the profits earned each month to build this reserve up to a balance of the equivalent of 10% of the invested capital. For example for an investment of EUR100,000 we would build a reserve of EUR10,000. It is not our intention to apply our Management Charge (see below points) until this 10% threshold has been achieved. In future months, if we deem necessary, we will use this reserve to support the targeted monthly return or to replenish any losses to capital.
Simplification of Fees
We condense many of the usual fees such as take-on, management, performance into one basic Management Charge which may only be applied in certain circumstances.
Prioritising Client returns over Fees
Our monthly targeted return to investors is 2%. We will not take our Management Charge if our monthly return does not exceed 2%. Our system is structured so that we may only apply our Management Charge in an upwards direction above 2% therefore meaning the 2% return will always be net of the Management Charge. For example, if the monthly return is 2.4% then the investor will receive 2% and Alcral will receive 0.4% as it’s Management Charge for that month. If the monthly return is below 2% then Alcral will receive no Management Charge.
As with many investment and asset management companies, Alcral receives a remuneration from its broker for every transaction undertaken. However, unlike many of those companies, Alcral has the ability to use part of this remuneration to support the monthly return to the investor as a secondary source to the the funds held in the Security Reserve.
Alcral physically pays out the monthly investment returns to its clients therefore being at immediate disposal – we do not roll them in or lock them up for any period. Similarly, there is no minimum investment period – we usually require just 7 days notice to be able to wind up positions, calculate profits and return funds.
By operating managed accounts the investor retains constant access to his account as well as total transparency. Alcral never receives client funds directly to invest and only operates under a Limited Power of Attorney, thus providing an extra layer of security.
Low Entry Level
For an investment that carries all these benefits, advantages and security, our entry level investment is set remarkably low at EUR100,000.