Detailed comparison: trial and client accounts


 

Covestor trial account

Covestor client account



Scope of services

Covestor trial account

A Covestor trial account is for demonstration purposes only, with functionality limited to the following:

  • - All account activity utilizes simulated account balance, with an initial balance of $100,000 virtual dollars;
  • - Investing in & redeeming from Covestor portfolios;
  • - Simulated performance and account valuation changes, based on the manager returns net of fees;
  • - Simulated risk profile and investment objectives; and
  • - All results in Covestor trial accounts (gains, losses, portfolio valuations, and performance returns) are fictional and will not result in any financial impact to the user, and no actual investment orders or security trades are executed in this account.
Covestor client account

Covestor Ltd. provides discretionary investment advisory services, as disclosed in our Investment Management Agreement and Informational Brochure, found at http://site.covestor.com/agreements

Clients authorize Covestor to make investment decisions for their assets under Covestor’s management.

All Covestor.com client account pages are available and functional for Covestor clients, including the following:

  • - Portfolio valuation and performance results;
  • - Holdings and transactions history;
  • - Investment instructions and history; and
  • - Risk profile and investment objectives

The investment account results displayed on these Covestor.com client account pages reflect the actual investment results of the client’s assets as managed by Covestor.


Registration

Covestor trial account

Covestor and a trial account subscriber do not enter into an investment services contract.

A Covestor trial account may be established upon registration at Covestor.com with a valid email address.

Covestor trial accounts require the use of a unique email address. If trial account users wish to become clients of Covestor and use the same email address, they must terminate their trial account prior to establishing their actual managed client account.

Covestor client account

Clients wishing to open a Covestor client account must execute Covestor's Investment Management Agreement and complete the online sign-up process at Covestor.com to obtain Covestor’s discretionary investment advisory services.

If you are considering engaging Covestor as your investment adviser, go to http://site.covestor.com/why-covestor


Duration

Covestor trial account

Active for 30 days, starting on the date the trial account is established.

Covestor trial accounts will be deactivated by Covestor at the end of the 30-day time period.

Covestor client account

The Investment Management Agreement is in force until terminated by either the client or Covestor.


Brokerage account

Covestor trial account

No brokerage account is required nor used in connection with the Covestor trial account

No actual funds are held or invested in the trial account.

Covestor client account

A separate brokerage account is required to be opened and funded by the client. Currently, clients must open a brokerage account with Interactive Brokers and authorize Covestor’s use of that account.

For more information on Interactive Brokers, see http://www.interactivebrokers.com/ibg/main.php.


Funding

Covestor trial account

Virtual funds for demonstration purposes only ($100,000).

Covestor client account

Brokerage account must be funded by client in US dollars.


Minimum account balance

Covestor trial account

Virtual (fake) dollars ($100,000)

Covestor client account

Minimum account requirement: US $10,000.

Recommended for day trading account: US $30,000.


Fees - Covestor

Covestor trial account

Covestor management fees are not charged on trial accounts and are shown as a deduction from the account for illustrative purposes only.

Sample billing statements will be generated for demonstration purposes only.

Covestor advisory fees are estimated based on current portfolio management fees applicable to the specific portfolio selected for investment.

Estimated trial account fees are applied the first day of each month and calculated based on the valuations for each investment as of the last day of the previous month.

Covestor client account

Covestor’s investment fees are a percentage of funds invested in each portfolio and vary by Portfolio. Investment fees are billed monthly and debited directly from client’s brokerage account.

For more information on fees, see: http://site.covestor.com/why-covestor/low-fees


Fees - broker costs

Covestor trial account

Estimated brokerage commissions are not charged on trial accounts and are shown as a deduction from the account balance for illustrative purposes only.

Actual client account will incur brokerage commissions including commissions associated with establishing and redeeming individual investments, which will vary from these estimated brokerage commissions.

Covestor client account

Client account costs are subject to a separate brokerage account agreement and includes all applicable trade commissions and account activity fees incurred by the client.

Actual client accounts will incur additional expenses (e.g., commissions) associated with establishing and redeeming individual investments (holdings).


Risk score & exclusions

Covestor trial account

Simulated risk score:

Covestor calculates a risk score, based on answers provided by clients to a risk questionnaire.

No client ability to exclude specific securities from results.

Covestor client account

Actual client risk score:

Covestor calculates a risk score, based on answers provided by clients to a risk questionnaire. Clients are able to specify individual security exclusions or investment restrictions.

Description of Covestor’s client risk scores available here: http://site.covestor.com/why-covestor


Performance & results

Covestor trial account

Net account value in the trial account is the sum of the latest value of the investments and unallocated cash.

Daily valuations of investments are estimated based on:

  • - the dollar amount allocated to each investment, and
  • - the cumulative manager return for each portfolio for the duration of the investment, net of fees.

Investments in trial accounts will not result in any replicated trade activity and are not included in the count of actual investments to portfolios.

Trial account valuations are calculated using the manager return net of fees, reflecting the deduction of actual brokerage fees incurred and a simulated Covestor advisory fee that would be charged to actual Covestor client account. The impact of these expenses may be understated or overstated.

Trial account performance returns are limited to the calculation of simple return for investment gain or loss in investment value divided by initial investment amount, calculated on a nonaccrual basis.

Actual client results and performance will vary from activity shown in the trial account.

Covestor client account

Net account value in the client account is the sum of the latest value of the investments and unallocated cash.

Daily valuations of investments in client accounts are based on actual investment activity in the client’s account (holdings and current market prices).

For more information on Covestor performance, go to http://site.covestor.com/help/disclosures

Actual client results will vary. Sources of this variation may include:

  • - Individual client restrictions or excluded securities;
  • - Covestor’s trade replication process and trading rules;
  • - Client account size; and
  • - Investment suitability as determined by Covestor.

Additional information regarding services and functionality

Covestor trial account

Limited services & functionality:

  • Place instructions to invest or redeem individual portfolios
  • No Covestor trade replication
  • Covestor.com online account information
  • (limited access - virtual funds)
  • - Account summary - enabled
  • - Investment instructions - enabled
  • - Account holdings detail - enabled, but displays holdings in underlying portfolio(s)
  • - Account transaction detail - enabled, but displays transactions in underlying portfolios
Covestor client account

Full service & functionality:

  • Place instructions to invest or redeem individual portfolios
  • Covestor trade replication - enabled
  • - Covestor is authorized to initiate investment trades in client accounts based on investments in Covestor portfolios and Covestor’s trade replication process.
  • Covestor.com online account information
  • (Full access - live assets)
  • - Account summary - enabled
  • - Investment instructions - enabled
  • - Account holdings detail - enabled
  • - Account transaction detail - enabled

Available portfolios to follow

Covestor trial account

Limited by Covestor for demonstration purposes.

Covestor client account

All active portfolios available for investment, subject to Covestor suitability evaluation and risk score matching.