I. MANAGEMENT MANDATE FOR THE INVESTUI SERVICE
This contract serves to appoint WH as the manager of the client to implement the selected Investui service (“the service”) on the client’s account. The clauses contained in this contract are a complement. They do not replace the general terms and conditions related to opening a WH account unless specified otherwise. The mandate is discretionary management without discretion.
1 Management Mandate
By signing this contract, the client mandates WH without limitations to place orders for the client’s managed account. WH is mandated to place buy orders, sell orders, and short sell orders on all financial instruments and using leverage if the instructions so provide. The client also mandates WH to execute all administrative and other acts related to all the assets in the account.
WH does not need to seek client approval for any act. The client explicitly approves in advance all acts executed by WH for the client’s managed account. This mandate does not allow WH to transfer money or financial instruments out of the managed account. The only outgoing transfers allowed are those agreed upon in this contract or those which are part of the general terms and conditions related to opening a WH account.
For the implementation of this contract the client submits to WH’s view of what it considers to be in good faith and favorable to the client’s interests. WH informs clients that in case they open an account based on a third-party recommendation WH may pay this third-party a one-time fixed fee, and possibly a variable fee. No fees or commissions are provided to WH by these third parties. WH commits to provide any further information upon request.
2 Duration
This contract is entered into for an unlimited period of time. It goes into effect on the day of signature by both parties. Both the client and WH retain the right to terminate this contract in writing at any time and for whatever reason.
If the client desires to terminate the contract, termination will take effect upon receipt of the client’s written instruction. Any open positions will be closed at market price no later than two working days after termination. If WH desires to terminate, the contract termination will take effect the first working day in Luxemburg following the day the termination letter is sent to the client, unless agreed otherwise. WH will close all open positions at market price no later than two working days after termination.
3 Minimum capital
Market Effects – The minimum capital the client needs to invest is € 10.000 for a managed account or € 5.000 for a self-trading account. If the client opts for another base currency, the minimum capital invested must be equal to the countervalue of € 10.000 in the chosen base currency. Stock-Boxes – The minimum investment per stock-box is $ 10.000.
4 The market effects service
The service is based upon a combination of specific trading strategies and is implemented within specific risk parameters. These strategies are outlined on the official Investui service website. The parameters of the trading strategies may evolve in order to adapt to market conditions. Evolutions, if any, will be reflected on the official website. In the case of changes deemed major by WH, the client will be informed via e-mail.
The strategies are based on active buy and sell policies (swing and day trading). The transaction cost and, in the case of overnight positions, the financing cost have an impact on the return on investment.
Investment strategies based on active buy and sell policies and using leverage should only make up a limited part of the client’s total assets.
The client cannot place orders to open a position on his managed account, be it via an order platform or otherwise. The client can only place close-at-market orders via the telephone. Any action initiated by the client does not form part of the service provided under this mandate, and WH is not liable for any losses arising from such actions.
5 The stock-box service
The service is based upon the proprietary stock-box concept. Every stock-box consists of eight different stocks. The stocks are solely selected using the momentum principle.
The eight stocks are approximatively equally weighted in the account. On the first market day of every month the combination of stocks is changed based on their momentum. All positions, including positions opened by the client and stocks, which will be carried forward into the next month, are closed at the market price. Only new positions based on the stock-box chosen by the client, are opened at market price. These eight positions are approximatively equally weighted again in value.
The client can place orders to open and close positions via the web interface or app. The client can place close-at-market orders via the telephone.
Any client with sustainability or other preferences must modify or close positions to reflect personal preferences.
Should a stock-box be discontinued, which is solely determined by WH, the client will be informed in a timely manner and via multiple messages using the e-mail address provided by the client. If no actionable response is received the account will default free of charge to the Nasdaq Stock-Box.
The client can pause the management mandate by providing a written instruction. When such an instruction is received any open positions are closed at the market price. If the client does not subsequently execute at least one order per month, the client will be debited for real-time quotes like any self-directed account. The client can reactivate the management mandate by providing a written instruction.
The service solely consists of implementing the strategy as described in the Risk Notice - Strategy section of this document. The client, who decides to modify the stock-box in any way, including but not limited to sustainability preferences, is solely responsible for these actions. WH does not monitor and analyse the client’s decisions and does not assess whether the client’s decisions are suitable. Any action initiated by the client does not form part of the service provided under this mandate, and WH is not liable for any losses arising from such actions.
6 Account
The client can choose the base currency of the account within the choices available. The base currency of an account cannot be changed. The client will receive a signed letter confirming the opening of the new managed account.
7 Sustainability
WH does not integrate sustainability risks, as defined in Regulation (EU) 2019/2088 on sustainability related disclosures in the financial services sector (SFDR), into its investment decision making process. The investment strategy applied under this mandate follows a non-discretionary model based on predefined parameters. These parameters do not include environmental, social or governance (ESG) considerations.
Therefore, the service cannot take any sustainability preferences into account, i.e. whether the client wishes to include any of the following:
- EU Taxonomy: a minimum % of Taxonomy aligned investments
- SFDR sustainable investments: a minimum % of “sustainable investments”
- PAI: consideration of principal adverse impacts.
8 Warnings
Past results are no indicator of future results. The client should not assume, based on past results, that future results will be similar or even positive.
Past results do not necessarily reflect all relevant charges and costs for each individual. Taxes, for example, can vary from investor to investor. These charges and costs can have a negative influence on returns. Past results do not necessarily reflect all possible gains. Unexpected gains can have a positive influence on returns.
This service is not a capital guaranteed service. This service is not a service with a guaranteed minimum return. The value of financial instruments can vary significantly and it is possible the client may lose a part or, although unlikely, the total of the investment.
Exchange rates vary and can have an impact on the return. The strategies are based on active buy and sell policies (swing and day trading). The transaction cost, the stock borrowing and, in the case of some overnight positions, the financing cost have an impact on the return on investment. Investment strategies based on active buy and sell policies and using leverage, if applicable, should only make up a limited part of the client’s total assets.
9 Monitoring and depreciation reporting
The client has at his disposal all statements and reports necessary to monitor his account. The client can contact the support desk on working days within the hours 8:00 – 22:00 unless specified otherwise. The account statements and graphic reports in the case of the market effects service are e-mailed to the client every day. In the case of the stock-box service the account statements are directly available in the client interface. The graphic reports are e-mailed to the client every day. Graphic reports are for informational purposes only. The communication includes the required depreciation reporting.
The client commits to frequently monitoring the account balance and to cancel this mandate immediately, should the loss exceed the maximum loss level the client determined for himself at the start.
10 Responsibility
The client warrants that he has, before signing this agreement, diligently informed himself about all the characteristics of the service and the investment strategies it comprises. The client confirms he has amply reflected before taking the decision to sign this contract.
The client declares that the information supplied by WH is sufficient to allow him to understand this service fully and that in case the actual return deviates from his expected return this is solely due to the client’s inaccurate interpretation of the information provided.
The client warrants that he will inform WH without delay and in writing should there be any change in his or her investor profile or financial situation.
11 Discharge
WH does not guarantee any particular return related to the investment decisions taken. The client hereby grants full discharge to WH for any responsibility related to the investment returns.
12 Order commissions and various
The client will be charged order commissions, and a set-up fee. If applicable a fee related to the monitoring of the relevant market effects is charged. The stock-box service is subject to a management fee. The management fee is due monthly and is applied to the total value of the account. The precise amount of the order commissions and the fees is available on the official website and in the ex-ante costs and charges disclosure document.
The client will not be charged an entry fee or an exit fee.
13 Transfers
Market Effects – Funding the account can be done by money transfer to our depository bank. The cost to receive, process and apply the transfer is € 5.
For the client’s security WH only accepts a transfer out instruction signed by the account holder(s). Transfer out costs are € 5 for amounts below € 30.000 and 0,10% (with a maximum of € 50) for amounts above € 30.000.
Stock-Boxes – Funding the account can be done by money transfer to the depository bank. There is no cost to receive, process and apply incoming transfers.
For the client’s security WH only accepts an electronic transfer out instruction to the reference account specified by the account holder(s). Transfer out costs are $ 50.
14 Correspondence
Unless specified otherwise the client and WH will correspond in writing by letter, fax or e-mail. The day of receipt is agreed upon as the next working day after the delivery day.
15 Language
For the convenience of the client this document can be translated in other languages. In the case of any dispute, the English language version will always prevail.
16 Entire agreement and severability
If any provision of this contract is held to be invalid, void or unenforceable by reason of any law, rule, administrative order, or judicial decision, that determination shall not affect the validity of the remaining provisions of this contract.
17 Governing law
This agreement will be governed by the laws of the Grand Duchy of Luxembourg. You irrevocably submit to the exclusive jurisdiction of the courts of the Grand Duchy of Luxembourg. WH retains the right to take legal action in any country against any client should WH deem it necessary for its protection.
II. RISK NOTICE
The information contained in this risk notice is a complement. It does not replace the risk notice, which is part of the WH account opening process and which refers to the risks specific to the instruments traded.
Market effects service:
Dynamic. The service’s investment style is dynamic. New positions are opened two to four times a week. Depending on the strategy, positions are closed the same day, after one or two days or after nine days. A dynamic investment style results in more order commissions than a passive investment style. The strategies should be able to absorb these costs.
Risk. The dynamic investment style uses a moderate amount of leverage depending on the number of positions. The number of positions varies from zero to maximum three. The client can request WH to close an open position.
Strategies. The four strategies, which make up the service, are all based on market effects. The strategies open a position at a particular point in time. The open position uses a time stop. The position is closed at a particular point in time. There is no profit target. Positions are opened and closed at the market price on a best-efforts basis.
Markets. The service invests in two major market indices, the DAX and the S&P 500, a major commodity, gold, and a major currency pair (GBP/USD). These are liquid underlying values and the instruments based on them, futures and CFDs, tend to be equally liquid.
Stock-box service:
Active. The service’s investment style is active. Both long positions and short sell positions can be opened, depending on the stock-box chosen by the client. The positions are reviewed and re-balanced on a monthly basis. Depending on the momentum principle no stocks, some stocks or all eight stocks in a stock-box can be replaced. An active investment style can result in above average order commissions. Given that the mini commissions are low, the impact of order commissions on the net return can be considered low. The service is suitable for investors, who wish to invest in stocks with momentum, which are part of a particular market index, industry sector or who share some other common characteristic.
Risk. The active investment style uses no leverage. The volatility and drawdown in stock investments can be significant. . The number of positions and their relative weighing do not vary. Adverse market movements can cause broad losses across major stocks at the same time, reducing the benefits of diversification.
Strategy. The strategy is based on the momentum principle. Each stock-box invests in a specific universe of stocks, which may be stocks included in a particular market index or another common characteristic. Depending on the stock-box chosen, the positions are either long positions or short sell positions only. A stock-box consists of eight stocks. The eight stocks are selected based on their momentum over the last three months. The stock-box is evaluated every calendar month on the first market day of the month. The stock-box invests in the eight stocks, which have the highest momentum. Stocks, which no longer meet this criterium, are replaced. It is therefore possible no stocks, all stocks or some stocks are replaced at the start of the month. Positions are always equally weighted at the start of the month. To achieve equal weighing all positions are closed and new positions of equal size are opened. Any positions in other stocks the client may have opened, will also be closed at the market price. Although the strategy always attempts to be fully invested in stocks, it is possible due to rounding, stock prices and other factors that some cash remains uninvested. Clients with smaller accounts should take note that some stocks quote at a high price, and therefore their resources may not suffice to buy or short sell such stocks. In this case these accounts have seven or less positions.
Markets. The service only invests in quoted stocks. The stocks are pre-selected based on their inclusion in a major market index and/or their inclusion in selection lists published by major investment banks and/or specific criteria determined by WH. The stocks are quoted and exchanged on major stock exchanges, including the NYSE and Nasdaq, ECNs and other major execution venues. . Historically these stocks are characterized by high liquidity and a small bid-ask spread. WH executes all orders according to the SEC’s National Best Bid and Ask rule. The client is thus always guaranteed the best available price at the moment of execution.
III. THE INVESTMENT PROFILE
This investment profile details the main characteristics of the Investui service. The client should carefully consider if these characteristics correspond with his or her investor profile.
Market Effects service:
Duration. The service is based on market or seasonal effects. The success is a function of implementing these market effects repeatedly, without exception over a longer horizon. This is not a short-term investment. The minimum logic evaluation horizon is two to three years.
Returns. The service does not provide a guaranteed return. The service does not provide a monthly return. The returns vary from year to year, based on the market conditions.
Liquidity. The service only invests in short-term positions on liquid instruments. The client can instruct WH at all times to close the positions and return his account balance. The service is therefore a liquid investment.
Risk. The service only invests in major market indices (DAX and S&P 500), gold and the USD/GBP currency pair. These instruments can be volatile. The number of positions in these instruments varies from zero to three. The minimum number of transactions per week is two. The maximum number of transactions per week is four.
Investment. The minimum investment is € 10.000 for both the futures account and the CFD account. The positions sizes are adapted on a quarterly basis to the effective account size. The simulator on the Investui website allows the client to get an impression of the positions and the position sizes corresponding to an amount invested above the minimum investment size.
Stock-Box service:
Duration. The service is based on the momentum principle. The momentum principle holds that stocks with the most momentum will go up in the short term, and that stocks with the least momentum will go down in the short term. The success is a function of keeping positions, which are reviewed on a monthly basis, without exception over a longer horizon. This is not a short-term investment. The minimum logic evaluation horizon is at least two to three years.
Returns. The service does not provide a guaranteed return. The service does not provide a monthly return. The returns can be very volatile and vary from year to year, based on the value of the underlying assets. The instruments used and the client account is in USD. Investors valuing their assets in a currency other than USD are by definition subject to exchange rate risk. The returns shown on the website and in the WH stocksheet charts exclude the mini commissions, any regulatory fees and the dividends received. The returns are both calculated monthly, and over the full life span of a stock-box.
Liquidity. The service only invests in major stocks quoted on the New York Stock Exchange or the Nasdaq directly or as an ADR. The client can instruct WH at all times to close one or more positions and return the account balance after settlement. The service is therefore a liquid investment.
Risk. The service only invests in major stocks quoted on major exchanges. These instruments can be volatile. The number of positions in these instruments is eight in each stock-box. The minimum number of transactions per month is sixteen. Even large, well-known stocks can experience sharp price swings due to market sentiment, economic news, or unexpected events. Stock prices on major exchanges are influenced by global factors, such as interest rates, inflation, and geopolitical tensions, which investors cannot control.
Investment. The minimum investment is $ 10.000 per stock-box. For each stock-box a separate account is used. There is no maximum investment per stock-box. In the case of short selling, positions can be limited due to the unavailability of stocks for stock borrowing. The client can at all times increase or decrease the amount invested.
