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Accredited Investor

An Accredited Investor is an individual:

1. Whose net personal assets exceed in value SGD 2 million (or it's equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or

2. Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it's equivalent in a foreign currency), or

3. Whose income in the preceding 12 months is not less than SGD 300,000 (or it's equivalent in a foreign currency)

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Kristal Freedom Account Fees and Charges

If account value is less than USD 50,000 -

NIL (if 25 or less client-initiated trade per calendar year; every SIP initiation is considered as 1 buy), else Custody and Asset Operating Fees at actuals charged to the Account by the Partner broker (i.e. Saxo Capital Markets).

If account value is more than USD 50,000 -

0.3% of account value charge is applicable, computed monthly on calendar month-end account value, charged quarterly and Custody and Asset Operating Fees at actuals charged to the Account by the Partner broker (i.e. Saxo Capital Markets).

Kristal Freedom Account Fund Movement Fee

Fee Item Kristal Freedom Account
Funds Deposit
USD Upto USD 25
SGD NIL
HKD NIL
AUD Upto USD 250
EUR Upto USD 250
GBP Upto USD 250
Deposit Threshold NIL (USD 1000 recommended)
Funds Withdrawal
USD Upto USD 50
SGD NIL
HKD NIL

FX Conversion

Where required shall be executed at 0.05% from the Market Rate. The Market Rate available to Kristal.AI is the Rate made available by the relevant brokers.

Note -

If Sender indicates Sender charges = 0, sending cost will be deducted (in addition to the above) by the receiving bank and paid back to the Sending bank and/or its Correspondent bank as applicable.

Additional charges levied by Clients’ bank may apply on transfers and FX conversions done in Clients’ bank account.

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Kristal Private Wealth Account Fees and Charges

Non Fund Kristal account value if less than USD 50,000 -

Custody and Brokerage at actuals, charged to the Account by the Broker (i.e. Saxo Capital, Interactive Brokers).

Non Fund Kristal Account value if greater than USD 50,000 -

- 0.30%p.a. of A/C value > US $50,000, computed MONTHLY on calendar month-end account value, charged QUARTERLY.

- Custody and Brokerage at actuals, charged to the Account by the Broker (i.e. Saxo Capital, Interactive Brokers).

Fund Kristal fee in accordance with Factsheet.

Fee Item Kristal Private Wealth Account
Funds Deposit
USD Upto USD 50
SGD NIL
HKD N/A
AUD Upto USD 250
EUR Upto USD 250
GBP Upto USD 250
Deposit Threshold NIL (USD 25000 recommended)
Funds Withdrawal
USD Upto USD 50
SGD NIL
HKD NIL

FX Conversion

Where required shall be executed at 0.05% from the Market Rate. The Market Rate available to Kristal.AI is the Rate made available by the relevant brokers.

Note -

If Sender indicates Sender charges = 0, sending cost will be deducted (in addition to the above) by the receiving bank and paid back to the Sending bank and/or its Correspondent bank as applicable.

Additional charges levied by Clients’ bank may apply on transfers and FX conversions done in Clients’ bank account.

Kristal Managed Investment Account Fees and Charges

Fixed Income account value is equal to or greater than 80% of Total account value -

0.20%p.a. of Total account value, computed MONTHLY on calendar month-end Total account value, charged QUARTERLY.

Fixed Income account value is less than 80% of Total account value -

0.50%p.a. of Total account value, charged QUARTERLY, computed MONTHLY on calendar month-end Total account value.

Brokerage Account operating and maintenance charges ADDITIONAL in accordance with your Agreement with Broker.

Money transfer and FX conversion charges in accordance with your agreement with Broker.

DISCLAIMER

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial institutions, large corporates, high net worth individuals and sophisticated investors.

By clicking “Proceed”, you confirm that you are an Accredited/Institutional Investor as defined under the Act and you agree to the Terms of Use for this website.

EXIT PROCEED

IC Speaks Mins Read

The Trade War Just Took a Turn Down Currencyville; and It’s Mayhem

kristal.ai-advisory-letter-banner

Advisory Letter: 6th August, 2019

 

Trump tweeted. Trump lashed. Trump levied sanctions and called big tech corp Huawei to the courtroom. Trump hemmed and hawed and made promises of a truce; uneasy as they may have sat on his tongue.

And then Xi made his money move by depreciating the yuan, and Chinese enterprises stopped their purchase of American farm goods.

The score now stands:

Trump: endless tweets. Xi: manipulation par excellence!

Jokes aside, this is not a good place for either of the world’s superpowers to be at. It’s been almost a decade since the last time the renminbi cracked seven. Wall Street obviously didn’t like this, with the S&P 500 sliding down 3%. Trade-sensitive sectors such as technology, consumer discretionary, and the industrial sectors saw the most sell offs. U.S. treasury yields are down as investors move to government-backed bonds, and could continue to fall if China does not rein in the currency weakening. The domino effect has also taken over markets in Asia and Europe. South Korea’s won dropped to its lowest in three years. The yen on the other hand has climbed to 105.80 to the dollar; the strongest it has been since the flash crash in January.

U.S. Treasury 10-Year Yield
U.S. Treasury 10-Year Yield

Xi’s move is pure psychological warfare, but it also allows China to offset the worst effects of Trump’s 10% tariffs. A weaker yuan makes it easier to sell goods abroad, and adversely affects American exporters looking to compete with China.

So, where do we go from here?

People’s Bank of China Governor Yi Gang has already issued a statement to the effect that China won’t use its currency as a ‘weapon’ in this war. Market sentiments seem to be divided on the matter. While Mnuchin is happy calling China a currency manipulator, there is little to actually prove that this is Xi’s doing all alone. Some analysts feel the yuan’s weakening is a natural offshoot of the trade war, and the People’s Bank of China has also claimed it is confident of keeping the renminbi at a stable state.

This is of course not the first time that China has devalued its currency. Back in ‘15, the PBOC knocked off almost 3% off the yuan in three consecutive devaluations. The shock factor this time comes from the fact that the yuan has been very stable for the past decade and investors have grown used to its increasing strength. In the backdrop of the escalating trade war, this is being seen as a power move by the Chinese, and the start of a new Cold War.

If this turns into a protracted currency war, it could spell trouble for many small and medium-sized trade-driven economies. Countries like Vietnam and Bangladesh which rely heavily on their exports and have huge debts will suffer. In the coming days, we could see global economic demand going down which will hurt oil prices, and cause a ripple effect on the other important currencies.

Investment-wise, we could see a reflection of the topsy turvy times in how various strategies perform. Crypto might just come back in the loop, and gold prices might strengthen. At Kristal.AI our house view is that the safe haven right now is in the bond sector and we’re hedging our bets on investment-grade corporate bonds. For investors with a 70:30 bond to equity portfolio allocation, we are maintaining a status quo with the caveat that if needed, we might change over from high-beta to low-beta stocks. For those with a higher equity allocation, we are rebalancing with a strong leaning towards IG bonds.

Also, SIP can be the way to go in such scenarios. For instance, let’s say you set up a standing instruction to build a medium to a long-term portfolio and add $1000-$2000 every month. Lest the market takes a massive dip, you can always add more, say $5000 and once it recovers, you can go back to investing $1000 per month.

If you have any doubts on how to insulate your portfolios from the market upheavals, remember your trusted advisors at Kristal are always a holler away at advisors@kristal.ai. 

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

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Disclaimer

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial institutions, large corporates, high net worth individuals and sophisticated investors.

By clicking Proceed, you confirm that you are an Accredited/Institutional Investor as defined under the Act and you agree to the Terms of Use for this website.