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Managed Accounts are available only to Non-U.S. Investors.
The minimum initial managed account investment is €500,000.00 EUR / $500,000 USD / £500,000 GBP or equivalent.
Managed Accounts are set up on a PAMM platform. PAMM stands for Percentage Allocation Management Module. The Percent Allocation Management Module (PAMM) is a technical solution provided by brokers which allows clients to have their own secured accounts managed by a professional trader on the basis of a limited trading power of attorney. The PAMM solution allows the trader, through one trading platform, to manage an unlimited quantity of managed accounts. Because the accounts are all held with the same Broker, there is no latency with trade execution.
Depending on the size of deposit, each managed account has its own trade ratio within the PAMM. Trader’s activity results (trades, profit and loss) are allocated between managed accounts according to the ratio, without co-mingling of funds.
While clients authorize Mediatrix to apply trades to their account on their behalf, MC never has direct access to the client’s funds when residing within a managed account. Additionally, client funds are held in segregated accounts, and all deposits, transfers, and withdrawals are handled directly by our regulated prime brokerage firm.
PAMM Accounts with Mediatrix
PAMM ACCOUNT – FEATURES AND BENEFITS
Managed Account clients have complete access to their account either through an online report viewer or the trading platform. Here they can view their account at any time, check balances and activities. Under our managed accounts agreement, clients agree not to withdraw any funds for at least 120 days.
Client accounts and funds are handled directly by the prime brokerage firm, who clears all of our transactions, handles directed transfers, deposits, and withdrawals. All MC clients are required to sign a Limited Power-of-Attorney (LPOA) to allow Mediatrix Capital Inc. to trade the managed account on the client’s behalf.
Withdrawing funds from the clients PAAM account is very simple. A client just sends a “Withdrawal Request” with a 30-day notice, to the Prime Broker and the funds will be withdrawn and wired to their designated financial institution within 48 hours. Trading profits left in the PAAM account will grow and compound for increased gain.
The only fees paid are the agreed upon performance fees made over and above the initial account deposit and/or subsequent deposits. Performance Fees are based on net new monthly profits (high watermark) only, and fees are deducted from the account monthly by the Prime Broker. A high watermark is the previous high in the account-participant’s account (adjusted for deposits, withdrawals, and performance fees). It ensures that the fees are only deducted from new net gains, rather than recovery from lower performance. In other words, if an account ever experiences a negative position below the High Watermark, the account must first recover any previous loss on the prior balance, and only then, with equity gained above the high watermark, will a performance fee be earned.
HOW BROKER / PAMM TRADE ALLOCATION WORKS
This is an example (ABOVE) of how trades are automatically allocated by the prime brokers PAAM technology between the Mediatrix PAMM “Master Account” and individual client PAAM accounts:
In this example we assume that there are three managed PAAM accounts under the Mediatrix Managed FX Funds program:
1. USD account with deposit of $ 100,000.00 and ratio 9.3%
2. EUR account with deposit of € 400,000.00 and ratio 49.5%
3. GBP account with deposit of £ 300,000.00 and ratio 41.2%
Depending on the client PAAM account balances, different ratios are applied automatically and systematically for the PAAM accounts (for ratio calculations, all amounts are converted in USD equivalent based on current market rates).
In this example, the Mediatrix trader determines to BUY a $10,000,000.00 EUR/USD position in the MC PAMM Master Account. The PAMM software then allocates this trade according to each client’s account size relative to the size of the total amount in the Master account.
The result is that each client is allocated their portion of the trade based on their individual account balance relative to the total amount of assets of the Mediatrix PAMM Master Account, and trade size. Each account is then adjusted by the same percentage of the profit & loss on each trade and in proportion to their account size against the aggregate trade, and from the PAMM Master Account size. In the graphic example above, the first managed account will be allocated Long 930.000 EUR/USD, the second client – Long 4.950.000 EUR/USD, and the third client – Long 4.120.000 EUR/USD. The trade allocation and resulting profit and loss to each client account is automatically calculated and allocated by the broker firm to each managed account.
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