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Model Portfolios

What is a Model Portfolio?

A Model Portfolio is a basket of mutual funds. By investing in a Model Portfolio, you spread your investment over a selection of funds, which helps to mitigate the overall risk of your portfolio. This enables you to invest your money efficiently and diversify your portfolio at one go.

What are the criteria for the selection of funds?

The funds are selected based on the ratings given by Morningstar – an independent market leader in investment research. Morningstar’s professional financial analysts determine fund ratings based on past performance, as well as future market projections. Morningstar’s fund evaluation is based on five pillars, which are management team, fund house, investment process, yields and costs. This enables Morningstar to weigh the fund’s potential for outperforming similar funds.

How can I invest in a Model Portfolio?

You can start investing in a Model Portfolio by visiting one of our investment centres. If you would like to know more about Model Portfolios, you can call us on (+356) 2557 4400 or send us an email at info@medirect.com.mt

How much does it cost to invest in a Model Portfolio?

Investing in a Model Portfolio will cost you just 0.5% of the amount invested if this is over €40,000, and 1% of the amount invested otherwise. We do not charge any exit fees or other transaction charges. The mutual funds that we buy on your behalf carry their own charges that impact your portfolio performance. You would incur the same charges regardless of whether you invest with us or with any other investment manager. We work hard to keep these fund costs as low as we can in our portfolios, so that you can benefit from better net returns.

What type of Model Portfolios can I choose from?

You can choose between income and accumulator Model Portfolios, where the former aim to provide you with a regular income, while the latter aim to grow the value of your investment over the long term. The income Model Portfolio has a balanced risk profile, while the accumulator Model Portfolio is available in five different risk profiles, from defensive to dynamic. A defensive portfolio contains mainly fixed income funds, whereas a dynamic portfolio mostly contains equity funds. The profit expectations of a dynamic portfolio will be higher than those of a defensive portfolio, but so will be the risks associated to it.

How do I know which Model Portfolio is best for me?

It is important that we get to know you and understand your needs before advising which Model Portfolio best suits you. Based on what you tell us about your finances and plans, our Branch representatives will be able to recommend a Model Portfolio with a suitable risk profile that is tailored to your financial needs. You should still carefully read all the legally required documentation about the funds. These documents include the prospectus, the (semi) annual report and the KIID (Key Investor Information Document). MeDirect will not manage the Model Portfolio for you, and therefore you should check your investment on a regular basis.

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We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.