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.
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..
Frequently Asked Questions(FAQ)
This section provides further information about our Asset Management Service. We invite you to contact us should your question not be addressed here under
Q. How do I open a forex managed account?
A. You can open live account with a reputable forex broker via our forex broker link
Q. What is the minimum investment for a forex managed account?
A. The minimum investment with EFNFX is $1,000. Please be sure to understand the risks involved with any investment.
Q. How do I fund my forex managed account?
A. Different methods of funding can be found on the website of your forex broker. Notably among them are mastercard, bankwire, webmoney, perfect money e.t.c
Q. How do I withdraw funds from my forex managed account?
A. You can initiate a withdrawal at any time you desire. Please remember you are the only person that can withdrawal from your account. We are simply appointed by you to trade your capital.
Q. What commissions or fees are charged by EFNFX?
A. EFNFX will negotiate performance commission and management fees with each new clients.on the minimum, we charge 40% of the monthly/weekly profit made on the capital.
Q. What is the expected return and can you guarantee anything?
A. EFNFX Limited does not guarantee any future returns.
Although past performance should not be considered a guarantee of the future, we do have statistics which show that, given the proper market conditions, the EFNFX Asset Management service can generate significant return on investment over the medium to long term..
Q. What are the advantages of your Asset Management Service?
A. EFNFX offers the opportunity to invest in what we believe to be a unique trading system developed by highly experienced forex specialists.
- It offers full transparency enabling the monitoring of all trades and charting evolution of the performance, as well as other personalized statistics.
- It is fully constantly monitored by our forex traders and IT Specialists.
- In order to minimize risk no open positions are kept overnight. Trading hours are between 5am and 11pm (CET).
- Profits and losses are booked every day in your base currency.
- We only require a 48-hour notice for any withdrawal or account closure. a 24 hour period.
Q. Can I stop trades being made on my forex managed account at any time?
A. YES! You are completely incharge of your money. This is true with ANY and ALL forex money managers
Q. What is an LPOA?
A. LPOA stands for Limited Power of Attorney. This is the form signed by all clients when appointing a money manager to trade their forex capital funds. This legal document states an individual or company acting as “attorney” (trader) has limited power over a designated account. The limitation of this power begins and ends with executing trades for the client.
Call us Today on +234 (0) 8068860520 for more information, alternatively send us an email to email@example.com