I. INVESTMENT SERVICES
Financialag as investment advisers provides: (i) investment services advised in the investment management modality, which consists of making investment decisions on behalf of clients, through the administration of client contracts carried out by Financialag, based on a discretionary mandate of the holder, and (ii) the provision of investment advisory services in securities, analysis and the issuance of investment recommendations, without being an intermediary in the securities market.
In the case of investment advisory services, Financialag will prepare a special profile for the client, to verify that it is effectively located in the cases of qualifying to acquire and participate in the stock market, in the terms of the investment services provisions.
II. RECEIPT OF INSTRUCTIONS AND TRANSMISSION OF ORDERS
Financialag may receive instructions and transmit the corresponding orders it receives from its clients, to brokers in the stock market or foreign financial institutions, in accordance with the mandate granted by the latter, in which it is empowered to issue instructions on behalf of and through account of these to the intermediaries of the stock market or foreign financial institutions of the same type to carry out operations with securities.
III. CLASSES OR CATEGORIES OF FINANCIAL INSTRUMENTS
The securities offered are registered with the National Securities Registry, and consequently authorized to be traded and consist of the following:
Debt Market: Bonds, Cetes, Stock Certificates, Commercial Paper, Investment Funds, Baskets of Instruments called ETFs, Structured Notes.
Capital Market: Shares, Obligations, Fibers, Investment Funds, Basket of shares called ETFs and Structured Notes.
The products offered by Financialag, such as securities or derivative financial instruments, are not designed by the credit institution, brokerage house or investment fund operating company with which Financialag is linked.
Financialag will not be able to carry out operations, receive investment instructions or participate in any way in advising or making decisions regarding securities issued or placed by Valores y Valores, S.A. de CV, Grupo Financiero Banamex, by virtue of the fact that the Advisor is linked to it, while one of the shareholders of Financialag is an independent director of the Board of Directors of said brokerage firm and is also a shareholder and member of the Board. of Administration and member of the Financial Products Analysis Committee of the Advisor.
IV. PORTFOLIO DIVERSIFICATION POLICIES
When managing, Financialag will remain within the investment limits and parameters established in each of the Investment strategies. These strategies were developed by the Financial Products Analysis Committee and allow the diversification of the different product profiles.
The portfolio can be invested in the aforementioned securities up to 100% of the total assets of the portfolio, that is, there is no minimum liquidity limit stipulated.
Each strategy has different diversification policies setting maximum limits to consider when creating the investment portfolio. Financialag will establish and maintain the necessary automated and procedural controls and will supervise compliance with the concentration limits established for each portfolio.
The investment area will monitor the operations carried out and keep a record of the excesses in the concentration limits of the portfolios and the corrective measures implemented.
In cases where it is required to update or establish new concentration limits, either due to changes in the provisions applicable to Financialag or to any of its clients, operational changes or business strategy, such modification will be formalized by the investment area.
At Financialag, the following customer profiles are used, both for Natural Persons and Legal Persons:
Peter Lynch: I have no need to use the capital for the next 12 months. I prefer to protect my investment capital, even if I have to forego higher returns.
John Templeton: Generally I focus more on risk than profit, but I am willing to take risks on a small part of my capital if it improves my performance a little. I have capital needs in the short term.
Philip Arthur Fisher: I focus on both the risks and the potential gains. I'm willing to take some short-term risks in order to get long-term capital growth. I have no need to use this capital in the next 12 months.
Warren Buffett: I understand the behavior of the financial markets. I am interested in maximizing long-term capital growth, so I am willing to take risks.
Benjamin Graham: I always focus on potential earnings. I am willing to accept fluctuations in the value of my investment in order to maximize my long-term earnings. I do not need to have my capital in the next 12 months.
Financialag only charges the fees for investment services that it has expressly agreed with each of its clients and provided that said services have been effectively provided.
Under the terms of the Securities Market Law, Financialag could not receive income other than that from the Client himself. In particular, Financialag cannot receive income from Stock Market Intermediaries and Securities Issuers.
Financialag's fees will generally be expressed as a monthly percentage that will be applied monthly on the average balance of the account (s) of the same.
Financialag charges its clients a commission that may not be greater than 0.17% per month, on the average daily balance of the account, in said period. The exact charge may depend on both the investment strategy and the volume of assets managed.
The calculation method will be as follows:
(VPC * commission) / 360 * daysOfMonth
VPC = Average Account Value
Any modification, including any increase, decrease or change in the composition of the commissions that Financialag charges for the investment management service, must be established with the client in a new service provision contract with Financialag.
Success fee: paid annually, within the first 5 (FIVE) business days following the day that the corresponding calendar year ends. It consists of the amount that results from multiplying 0.0983 by the difference of the resulting percentage with its benchmark by the profits generated at the end of the corresponding fiscal year, as long as the client's investment portfolio has had an annualized yield equal to or greater than the percentage established in the benchmark.