The Conexim offering has been built around Risk Mitigation, at both firm and client level. This is good for everyone – Conexim, Custodians, Regulatory Bodies, Trustees, Intermediaries and most importantly, Clients accessing our services.
Our clients are required to have cleared funds or assets in their account prior to the execution of any trades, so neither the firm, the client, the trustee or the custodian have the risk of bad debt or client side settlement risk.
At the outset of the relationship, we work out a Risk Management and a Risk Based Asset Allocation Framework, and present this to either the Client’s Advisor and Trustee, or directly to the client. This allows us to set-up a Risk Monitoring Plan, and once your portfolio moves outside of your desired allocation, we present you or your advisor with a range of options, such as ‘Take Profits and Rebalance Portfolio‘, ‘Cut Losses and Rebalance Portfolio‘, ‘Cut Positions and Leave in Cash‘, ‘Change Allocation’ and ‘Continue to Monitor’.
When rebalancing a portfolio, Conexim can provide a zero commission option for funds, and can trade equities, fixed income securities and ETFs at institutional rates. This allows our clients to rebalance their portfolios without fear of incurring large commissions.
The Portfolio management tools we provide and use to monitor client assets utilise a traffic light system to manage portfolio drift and any asset allocation breaches.
We provide Portfolio Compliance reports to our clients (or via their Advisors and Trustees), both on a periodic basis, as well as on an exception basis (i.e. when portfolios have drifted outside of an agreed allocation). Reports can be issued daily, weekly, monthly, or semi-annually. Or you can log onto our website and check your portfolio yourself in real-time.
Taking risk out of the system significantly reduces the cost of providing our service due to decreased capital requirements, reduced commitment to market and client side risk, and reduced overhead coverage.
In turn, this allows us to provide our clients with access to a highly advantageous pricing structure.