Model Portfolios

When will the monthly contributions be executed?

The monthly contribution will be processed on the 20th of each month or the next available business day if 20th is not a working day. This contribution will be taken from the original Cash Account, defined at the initial set-up of your Model Portfolio. In case of not sufficient balance, your contribution will not be processed. If your Model Portfolio was created before the 10th of the month then the first monthly contribution shall be processed in the same month, if your Model Portfolio was created on or after the 10th of the month, then your first monthly contribution shall be scheduled for the next month.

What order types are available?

You can purchase or sell securities on the MeDirect trading platform by placing market orders or limit orders. Market Orders: If you place a market order, your order will be executed at the best available market price, and this according to MeDirect’s Best Execution which is included as Appendix 4 of MeDirect ’s General terms and conditions. Limit Orders: Limit orders are available only for shares and trackers (ETFs). When submitting a limit order, you will have to provide a limit price. Buy orders will only be executed at a price equal or lower than the limit price, while sell orders will be executed at a market price equal or higher than the limit price. You can choose between three different types of limit orders: Fill or Kill: your order will be executed immediately in its entirety or cancelled Immediate or Cancel: your order will be executed immediately in whole or in part, otherwise the order (or any unfilled parts of it) will be cancelled. Partial fills are accepted with this type of order, unlike a Fill or Kill order, which must be filled immediately in its entirety or cancelled. Good for the Day: your order will automatically expire if not executed at the end of the day when the order was placed. A “Good for Day” order is an order that is good for that day only, during which time partial fills can take place. If it is not filled, the order (or any unfilled parts of the order) will be cancelled. If you wish, you can re-input the order on the next working day. All limit orders expire at the end of the trading day. If you want the order to run longer, you need to enter it again.

Can I add an additional amount to my Model Portfolio?

You can add an additional amount according to the current weightings of the funds at that moment. You can add this amount yourself on the secure website. You choose the Model Portfolio via ‘My investment overview’ and the button ‘Add additional amount’. The minimum amount is 2.500 EUR.

How are these transactions carried out for my Model Portfolio?

If you would like to withdraw or add an additional amount, this amount will be composed according to the current weightings of the funds in the Model Portfolio at that moment. The percentage distribution per fund is rounded down, without decimals. For example, 9,63% will become 9%. The remaining amount will then be added to the largest fund in the Model Portfolio, in order to always make up a total of 100%. When you have confirmed the order, it is sent for processing. You must take into account that funds do not always have the same processing time. For every order, you will receive a confirmation of execution via the mailbox of the secured website. The requested amount will be available on the cash account that is linked to the Model Portfolio.

Can I sell my Model Portfolio in one go?

Instead of selling each fund separately, you can sell all funds in the Model Portfolio via the button ‘Sell all’. Please note: MeDirect does not charge any transaction costs. However, when selling capitalisation funds, you must pay the stock exchange tax and possibly also capital gains tax.

Can I withdraw an amount from my Model Portfolio?

You can withdraw an amount from the model portfolio. This amount will be composed based on the current weightings of the funds in the model portfolio at that moment. You can withdraw this amount yourself via the secure website. You choose the model portfolio via ‘My investments’ and the ‘Withdraw amount’ button. The minimum amount is €2.500. You must also ensure that a minimum of EUR 2.500 in investments remains in your model portfolio. You can also choose to sell all funds in the model portfolio via the ‘Sell all’ button. Please note: MeDirect does not charge any transaction costs. However, when selling capitalisation funds, you must pay the stock exchange tax and possibly also the capital gains tax.

Can I change the amount and frequency of monthly contribution?

You cannot change the frequency of monthly contributions, as this is automatically set to once a month. If you want to change or stop your monthly contribution, you can do this in the model portfolio via ‘Monthly contribution’. If you want to stop your monthly contributions, you can set the amount to 0. If we received your instruction to change or discontinue the monthly contribution before the 10th (for new clients) or the 14th (for existing clients) of the month, the change will be processed in the same month. If we receive your instruction to change or discontinue the monthly contribution after the aforementioned dates, the first monthly contribution will be processed in the subsequent month.

How will the monthly contributions be executed exactly?

Your monthly contribution will be broken down over the different funds, based on your first initial purchase of the model portfolio, i.e. based on the original composition model portfolio. If you made any changes to this model portfolio, you need to take this into account.

What costs are there for my Model Portfolio?

There are no additional costs for the Model Portfolios. There are no entry or exit fees. When selling a fund, you have to take into account the exit tax, or, if applicable, capital gains tax on funds that invest for more than 10% in bonds. This deduction is final, which means that you do not have to declare it on your tax form.

Do the Model Portfolios have a specific risk profile?

The ‘Capitalisation’ Model Portfolio has 5 different risk profiles. You can choose a risk profile from defensive to dynamic. A defensive portfolio contains mainly fixed income funds, whereas a dynamic portfolio mostly contains equity funds. Therefore, a dynamic portfolio will be more sensitive to fluctuations on stock markets. The profit expectations of a dynamic portfolio will also be higher than those of a defensive portfolio. The ‘Regular Income’ Model Portfolio always has a balanced risk profile.