Friendly Money Tree
Investment Club
Friendly Money Tree
Investment Club
Frequently Asked Questions
Q: Why are there several days where the funds are not traded?
A: At certain times, ie. during a financial crisis, the risk to funds is much higher. If the risk exceeds the comfort zone for that fund, then it will not be traded. Whilst this may be seen as missed opportunities to make money, it can also be seen as missing opportunities to lose it.
Q: Is our private data kept safe by the Club?
A: Yes. All Data that the Club holds is encrypted. All paper documents are scanned encrypted and then the original is shredded.
Q: If the Clubs computers get stolen or left in a Taxi, is our private data still safe?
A: Yes. All Data that the Club holds is encrypted. The technology that we use, encrypts the data immediately. If we edit your data, it is decrypted, changed, and then re-encrypted on the fly, leaving your information safe and secure at ALL times.
Q: What encryption method do you use and is it safe?
A: The Investment Club uses 256 bit AES encryption technology.
This is Government/Military grade protection.
Q: As my information is encrypted, is it kept private from the authorities (Police etc.)?
A: NO. Absolutely not. Whilst it cannot be inspected for just any reason, if a formal and authorised legal request for the information is provided, the Club is required by law to provide all information legally requested.
Q: There are fees involved in trading. How much does the investment club charge?
A: The Investment Club covers all fees. All commission, stamp duty, account admin fees, account charges and fees for the data feeds required, are paid for by the Club. In turn it was agreed that the Club would levy a small commission which was set to 25% of the profit. Initially this means there will be a shortfall which the founder members have agreed to cover.
Q: How is the value of my investment calculated?
A: The Investment Club uses industry standard calculations.
Q: How often do I get a statement and how do I get it?
A: Initially it has been agreed that due to the amount of work required, statements will be available once per month (Every 3 months if no regular payments received. NB. This is by special arrangement only). The statements will be provided by secure encrypted e-mail, so ensure that you have this set up. They can also be printed and collected by hand (by special arrangement).
Q: I don’t want my statement by e-mail. Can I have it posted?
A: Yes. It will not be as safe as an encrypted e-mail. There will also be a charge to cover the extra admin and postal fees. This has been set at £1.25 for sending by normal post. If you require secure special delivery then this will be £7.50 .
Q: I should have had a statement but I have not received one, what has happened?
A: Statements are sent by secure e-mail. If you have not provided password etc. and tested this, then you will not be receiving your statements. You can arrange to have them sent by post as an alternative.
Q: What is the minimum amount that I can invest as a member?
A: Our members have agreed the following minimum investment amounts:
A One Off Investment Minimum of £200 and either
A Monthly Investment Minimum of £20 or
A Weekly Investment Minimum of £5
It should be remembered that these are not set in stone and can be changed by our members.
Q: How long do I have to invest?
A: Whilst the club would recommend that members see their investment as long term, it was decided by the members that there should be no minimum term or "Lock In" for members invested funds. But this may be subject to change.
Q: Do I have to invest in each of the club’s funds at the same time?
A: No. Members are free to select how they wish their money invested. Simply include your instructions with your investment.
Q: What funds are available for members to invest in?
A: There are currently 4 separate funds for members to invest in. A Long Term Fund (LTF) with lower expected risk. A Short Term Fund (STF) with higher expected risk, but with higher expected gains and an Experimental Trade Fund (ETF) which is selected by members on an “opt in” rota basis (risk unknown, but probably quite high. This one is for fun). The fourth fund is of course the Christmas fund.
Q: Why is your investment return estimate so low (6.8%AER)?
A: Firstly, it is achievable. The main aim of any investment club is to beat the banks. We would like to attain 12%AER beating even fixed term investments. It would be very nice for us all if we could achieve consistent daily gains. After all, this is what we all want. But we should start by using achievable targets and moving them as we progress, proving our worth. Whilst higher figures may be warranted by our performance, the members felt that this may encourage people to invest more than they should and felt this should be discouraged.
Q: Do I get a receipt when I put money into the investment club?
A: Yes. You will be given a receipt for any money that you put in to the investment club. The receipt will have the amounts and the details of the allocation for them that you request along with any special instructions that you have provided.
Q: How do I pay money to the investment club.
A: Cash, Direct Debit or Standing Order. You can also make direct transfers to the Club account. Payments may still be made directly to a Founder Member. If you require Bank details, then please contact Info@FriendlyMoneyTree.com.
Q: Once I have put money in, how long will it take before the money starts working for me?
A: The Club will endeavour to get money working as soon as possible. We are limited to the normal bank clearing system and the need to move the funds from a traditional bank account to an investment account. Thus it will take about 5 working days from placing money with the investment club, until it is working for you. The investment club is committed to excellent service for its members. If we can get your money working sooner, we will.
Q: The investment club has worked well and grown my money. How long does it take for me to get my money out again?
A: Unfortunately, due to the nature of settlement of stock market transactions (ie. The transaction takes place on day 1, but the transaction is not settled for a further 5 days say.), it may take as long as 10 working days to get the money back to a given member. The investment club is committed to excellent service and will get the money to you in less time if at all possible.
Q: When I withdraw money from the investment club, how is it transferred?
A: Either in cash (although cash payments are likely to end soon) direct to the registered member or directly into a bank account belonging to that member (which may incur extra clearing time with the members bank). Direct payment to a bank account is recommended for large sums as it would help to ensure the security and safety of our members.
Last updated and accurate to the best of our knowledge on 4th February 2011