How can I invest in SimFin Portfolios?
SimFin provides investors with the tools to design quantitative investment strategies (portfolios) and retrospectively verify their performance. A select number of carefully chosen and vetted portfolios are transferred by SimFin to wikifolio.com. Selected wikifolio certificates are tradeable.
What do I need to know as an investor?
SimFin offers stock investors and analysts the ability to develop quantitative investment strategies, create their own portfolios, and backtest them. Selected and tested portfolios are replicated by SimFin to wikifolio.com and are available there as individual tradable investment certificates.
The following four points explain how SimFin portfolios become tradable as wikifolio certificates.
1. Quantitative Strategies and Backtesting
A significant feature of the SimFin platform is the ability to test investment strategies developed with the SimFin Stock Screener for their prospects of success before they are deployed in the real world. This is accomplished through backtesting, which uses historical financial data to simulate the performance of a strategy.
This helps investors assess how the strategy might perform under different market conditions and supports making informed investment decisions.
2. Publication as wikifolios
After successful backtesting, strategies can be published by SimFin on wikifolio.com as so-called "wikifolios." The SimFin wikifolios are typically replicated weekly to the relevant SimFin portfolio. In this process, the stocks currently listed in a SimFin portfolio are reweighted at equal value according to the latest closing price. This keeps the portfolio up-to-date and reflects the latest market developments.
3. Purchasing of wikifolio Certificates
The SimFin wikifolios published on wikifolio.com are issued as tradable investment certificates by the stock trader Lang & Schwarz. Such wikifolio certificates can be purchased by investors through their house bank or online broker using the provided ISIN (International Security Identification Number). The certificates can be acquired via most brokers and banks in the DACH region or the stock exchanges Stuttgart and Bern or the stock broker Lang & Schwarz.
SimFin has its own page on wikifolio.com where the wikifolios are listed and can be viewed in detail: https://www.wikifolio.com/de/de/p/simfin?tab=wikifolios
4. Security of Your Investments
For the listed certificates based on wikifolios, the issuer offers a collateral solution to protect the investor community. More information on the security of the wikifolio certificates offered by Lang & Schwarz.
Summary
SimFin provides investors with a unique platform where quantitative investment strategies can be developed and tested. Through a partnership with wikifolio.com, SimFin portfolios are practically replicated 1:1 as wikifolios, which are tradable as certificates. Such wikifolio certificates can be purchased through a house bank or an online broker of your choice.
Frequently asked questions
Why are SimFin portfolios not directly tradable?
SimFin is a software company specializing in stock analysis tools and financial data. SimFin is not an investment advisor or a stock broker. For this reason, portfolios created on SimFin cannot be traded on SimFin.
Who is wikifolio.com and what do they do?
wikifolio.com positions itself as the leading online platform in Europe for trading strategies, targeting investors who value intelligent investment.wikifolio users share their trading strategies in the form of model portfolios, known as wikifolios. Investors can follow these strategies by investing in the corresponding, secured wikifolio certificate, doing so in a simple and direct manner.
What is a wikifolio?
A wikifolio is a dynamic model portfolio on wikifolio.com that reflects trading strategies which you as a stock investor can follow. If a wikifolio garners support from at least ten people, the trading idea can also be represented in an open-ended index certificate (wikifolio certificate) issued by the Lang & Schwarz Aktiengesellschaft in Dusseldorf. Each wikifolio certificate has its own security identification number (WKN) or ISIN and is listed on the Stuttgart and Bern stock exchanges, as well as being tradable over-the-counter via Lang & Schwarz.
How can I invest in a wikifolio?
If you decide on a wikifolio, you can invest in the associated wikifolio certificate, which you can purchase through your bank or your online broker. Each wikifolio certificate has its own ISIN, which you can find on the detail page of the wikifolio.
What are the costs of purchasing a wikifolio certificate?
There is a fixed certificate fee of 0.95% per year and a performance fee starting at 5%, which only applies when a new annual high is achieved. All fees are already included in the price of the wikifolio certificate.
What is a wikifolio certificate?
A wikifolio certificate is a financial product listed on the stock exchange that tracks the performance of a specific wikifolio. It can be bought or sold at your house bank or an online broker. A certificate is a debt obligation to the issuer, in this case Lang & Schwarz Aktiengesellschaft.
How are wikifolio index certificates secured?
The TEAM Treuhand GmbH was appointed as trustee by the Lang & Schwarz Aktiengesellschaft in favor of the wikifolio creditors by a trust agreement dated February 20, 2017. With a security agreement, also dated February 20, 2017, between the Lang & Schwarz Aktiengesellschaft, the Lang & Schwarz TradeCenter AG & Co. KG, and the TEAM Treuhand GmbH, financial obligations from the sold wikifolio index certificates towards the wikifolio creditors have been secured by liens on:
(a.) Securities that were acquired due to the sold wikifolio index certificates, (b.) Current account balances maintained at third-party banks, (c.) The balance from current account balances on current accounts at the house bank HSBC Trinkaus & Burkhardt AG.
Further details on the securing of the wikifolio index certificates can be found in the current report on the audit of TEAM Treuhand GmbH and in the archived reports.
Can I purchase wikifolio certificates if my main residence is outside the DACH region (Germany, Austria, Switzerland)?
Yes, if you are a resident in the EU or EFTA (European Free Trade Association).
Disclaimer: The information provided in this text is intended for informational purposes only and should not be considered as investment advice. Investing in securities involves risks, including the potential loss of principal. Before making any investment decision, please consult with a financial advisor or do your own due diligence. Past performance is not indicative of future results. SimFin and its affiliates are not responsible for any damages or losses arising from any use of this information. All investments involve risks, including the loss of principal. Not all strategies are suitable for all investors. Please understand your own risk tolerance before investing.