Frequently asked questions

General

The following FAQ’s apply to all of our clients, products and services.

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Who is Emergo and what is LifeGoals?

LifeGoals is a registered trademark (EU registration no: 018129117 and UK registration no: UK00003659603) owned by Emergo Wealth Ltd. a regulated investment firm. There are several LifeGoals and Emergo entities that may be involved in executing our services. All of them are regulated and fall under the same umbrella. You will not incur any additional fees as result of the involvement of any other entity.

Why LifeGoals?

Simple. LifeGoals helps you plan smarter by focusing on what matters most: your financial goals. Our online planning tools are designed for ease of use and efficiency, and our policies are low cost and completely transparent.

What is your investment philosophy?

Decades of financial management have taught us a crucial lesson: don’t obsess about beating the market. The market is extremely volatile and even your most educated guesses may fail you.


Instead, we believe in helping people earn more over time by focusing on what they want to achieve in life and what they can afford. This is the most effective, cost-efficient strategy for reaching whatever financial goals you set for yourself and for building wealth over the long run.
 

Why should I trust you?

Trust is earned not implied;  to that end, we aim to earn your trust by providing you with a transparent offering with: no sign up fees, no switching fees, no lock-up periods and no exit fees.


We have numerous measures in place to ensure there is no confusion about your investments. A clear investment policy statement and a state-of-the-art platform will showcase exactly how we go about in helping you achieve your goals as your asset manager of choice. On the security front, we operate with strict adherence to every applicable confidentiality regulation and have also sought custody services from some of the industry’s biggest players, to ensure that even in the case of financial instability, however unlikely it may be, your assets will be kept safe.

We also understand that sometimes you may change your mind. If at any point in time you are uncomfortable with our offering you can redeem your investments and we will return the money to you, no questions asked.
 

Are you a fintech?

Absolutely, as a fintech (Financial Technology) company we put technology at the forefront of everything we do. We have a dedicated development team that is working around the clock to improve and enhance our product offerings. Our affinity to technology allows us to deliver premium products and services, previously only available to high net-worth individuals, in a more cost-effective way resulting in lower management fees for you.

How can I get help?

If you need help at any time, you can reach us via chat or you can book an appointment with one of our experts using our support centre.


Personal

Our personal clients can enjoy the benefit of our professionally managed LifeGoals Portfolios. The following FAQ’s are applicable to our personal clients.

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What is a portfolio and why do I need one?

A portfolio is a collection of financial investments like stocks, bonds and commodities (called securities) which, when combined, will provide you with exposure to the broader market. Individual investments can move up and down exposing you to significant gains or losses. You diversify your investments, and reduce the risk, by combining individual investments in a portfolio. Finding the optimum combination is not easy; at LifeGoals we have a department (called Asset Management) whose members are tasked with creating portfolios that meet your needs.


LifeGoals and professionally managed portfolios in general, offer substantial advantages to investors. In a nutshell, you get to opt in to an already proven, diversified portfolio that stands the test of time. Dedicated teams work continuously to improve both your financial returns as well as your experience with the product, improving transparency and accountability. The scale of the portfolio also comes into effect as we get to reduce costs for our clients through large volume transactions.
 

Where does my money go?

Once your funds leave your bank account, they are transferred to the LifeGoals client account at Saxo Bank. It will then be held there until the next LifeGoals subscription date (the following Monday) at which point it will be used to purchase the relevant financial instruments for your investment portfolio. Naturally, we will keep you updated every step along the way.


Your money does not go through our own balance sheets at any point (it is your money, not ours), as they are held for safe keeping by reputable custodians throughout the process. Safe keeping or custody of assets is a service provided by highly regulated specialised financial institutions that hold client assets to minimise the risks of those assets being misappropriated. Their role becomes especially important in the event of financial instability in the investment manager, as the custodian will ensure client assets are distributed to their rightful owners, the clients.


Our custodians include important players in the global financial services landscape such as Citi and State Street. Both custodians have a long heritage in the financial services industry, operating in multiple jurisdictions around the globe and holding over $20 trillion of client assets under custody.

What is a custodian?

A financial custodian is a financial institution that holds financial assets on your behalf. A custodian’s role is to minimise the risks of those assets being misappropriated; a role which becomes especially important in the event of financial instability in the investment manager, as the custodian will ensure client assets are distributed to their rightful owners, the clients.

Who are the custodians?

We use some of the industry’s most prominent institutions like Saxo Bank, Citi and State Street.

What is an Underlying Asset Manager?

Our job is to create portfolios tailored to your investment objectives. The underlying asset manager’s job is to create a selection of securities which we may consider for inclusion in your portfolio.

How we select our underlying asset managers?

Our portfolio construction process includes an extensive analysis of both the underlying asset managers and specific fund characteristics. To find the best asset managers, we look at factors such as size, experience, stability, reputation and environmental or social commitments. On evaluating specific funds, we analyse historical returns, standard deviations and correlations of each instrument as well as liquidity, geographic, sectoral, credit and currency characteristics.


Costs are also considered in order to safeguard the investment products on offer remain cost-effective and reliable, even at times of market stress.


The set of criteria are applied meticulously and as such our underlying investment managers of choice include some of the world’s most prominent and reputable asset managers.
 

BlackRock DWS
UBS Lyxor
VanEck Goldman Sachs
Societe Generale  

What is rebalancing and why is it important?

As your securities rise and fall the proportion of each of these securities in your portfolio changes resulting in a sub-optimal combination. Our system reviews these changes on a weekly basis and performs and automatic rebalancing to ensure that your portfolio meets the design criteria.

Are my securities pledged or otherwise encumbered?

The shares in your portfolio are not encumbered in any way and will not be subject to securities lending.

How often can I move money in and out of my account?

You can withdraw from or pay into your account as often as you want by bank order. Since your money are always working, the funds in your account remain invested at all times. It will therefore take us up to one week to disinvest so that your funds are available for withdrawal.

Am I charged if I withdraw money from my account?

No, we don’t charge any entry or exit fees, or fees of any kind. You may only be charged bank transfer fees directly imposed by your bank.

Is there a minimum amount for investing with LifeGoals?

All you need is €50 to start investing with LifeGoals. For any investments you make after that, there’s a €10 minimum.

Can I switch plans?

Yes, you can switch your plan up to once a week at no cost. Portfolio changes take effect end-of-day Friday so we will need your instructions by Thursday.

What are your fees?

We charge a maximum of 0.75% management fee on your total Assets Under Management (AUM). For more information on our fees, please visit our Pricing page.

Do you support my language?

We are proud to provide you with English language support via chat, online meeting and telephone. Your local customs and language are important to us and we are working hard to expand our operational department to provide support in your local language.

Who is Trustly and why did you chose them?

Founded in 2008, Trustly is the global leader in Online Banking Payments. We work with 6,300 banks across Europe and North America and have deep-reaching knowledge of local regulations, practises and, of course, customer needs.


To ensure Trustly was the right partner for us and our clients, we conducted an extensive due diligence an them (and they on us) and we are confident that we've selected a partner that can support our growth without compromising quality and security.


Like all of our partners, Trustly represents a best-in-class offering, you can learn more about the Trustly here.
 

Who is Saxo and why did you chose them?

We carefully selected Saxo Markets as our executing broker to ensure timely, accurate and cost- effective trade execution supported by a state-of-the-art technology platform.


Backed by Saxo Bank from Denmark, Saxo Markets adhere to strict regulatory requirements across 15 jurisdictions, trusted by 850,000 clients globally.


Like all of our partners, Saxo represents a best-in-class offering, you can learn more about Saxo here.

Who is Onfido and why did you chose them?

To securely onboard a client in an expedient manner and still meet or exceed our regulatory requirements, we selected Onfido.
Onfido is the new identity standard for the internet. Our AI-based technology assesses whether a user’s government-issued ID is genuine or fraudulent, and then compares it against their facial biometrics. That’s how we give companies like Revolut, bunq and the assurance they need to onboard customers remotely and securely.


Like all of our partners, Onfido represents a best-in-class offering, you can learn more about Onfido here.
 

What is an ETF and why is it a safe investment?

An Exchange Traded Fund (ETF) is a basket of securities that is constructed to track an index and as the name suggests, can be traded on the stock exchange. ETFs can be structured to track sectors, asset classes, geographies or entire economies and have become extremely popular especially in the last decade, now holding trillions of dollars in assets.

ETFs have gained appeal due to the many benefits they can provide to investors. As ETFs can track indices that simulate large sectors or economies, they typically each hold a very large number of securities, delivering exposure to a wide range of companies for a relatively low cost. ETF holders therefore buy a diversified product that targets overall sector overperformance, rather than restricting themselves to the performance of specific companies. Their enormous demand from both the institutional and retail spaces also means they are highly liquid and can generally be traded on a variety of exchanges around the globe and at any time. Lastly, unlike many mutual funds, ETFs do not make use of leverage, which reduces the risk of steep losses in short periods of time.

These characteristics (instant diversification, low cost, high liquidity and no leverage) have positioned ETFs as a compelling proposition for achieving our clients’ investment goals and delivering prudent and highly competitive investment solutions.

Simple Return

Simple Return is calculated by dividing the “Total Return” on an investment by the “Total Net Inflows” . For instance, a Goal with a profit of €100 and Total Net Contributions (contributions minus withdrawals) of €10,000 would have a “Total Return %” of 1%.

Since the Simple Return always represents the percentage profit on your account balance, if you contribute another €100, the “Total Return” would fall to 0.99% (€100 divided by €10,100).

In the case of full withdrawal of your funds, the “Total Return” of the said Goal is automatically reset, and starts over again with the deposit of new funds. In such case, the Simple Return will be calculated by dividing the “Total Return” by the “Total Net Inflows” following the full withdrawal date. For example, if you withdraw all funds and start over again by contributing €500, a profit of €5 (since the date that you started contributing again), will have a “Total Return %” of 1%.

Please note that all return measures are calculated and presented after fees are taken.

Time-weighted rate of return (TWR)

The time-weighted rate of return (TWR) provides a measurement of your investment performance without the effect of cash flows (contributions, transfers or withdrawals). That is, it is the theoretical return you would have, if you had only made a one-time investment without further contributions or withdrawals since the inception of your account.

While TWR can sometimes be confusing, since it does not necessarily present your individual account gains or losses, it is often used to compare the returns of different investment portfolios because it eliminates the effect of money inflows and outflows which have a distorting effect on performance.

The TWR can at times be more or less than the single returns on your investment, depending on the timing of your cashflows (contributions, transfers and withdrawals). To avoid confusion the TWR is not presented for the LifeGoals Provident Fund accounts, but it is however calculated for personal investment Goals.

Please note that all return measures are calculated and presented after fees are taken.


ESG

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What is ESG?

“ESG” stands for “Environmental, Social and Governance”. In essence, these are non-financial factors used by investors or investment companies in general, as part of their analysis process to measure the sustainability of a company or an investment.
An increasing number of companies integrate sustainability factors into their business by switching to environmentally friendly solutions in the way they perform business (i.e. limiting carbon footprint, or going fully digital to eliminate paper use, using biodegradable materials etc).


It must be understood however that ESG, goes beyond saving the environment. Companies now consider matters such as equal pay, elimination of sex or racial discrimination, equal sex representation on the board of directors, better working conditions. Illegal acts such as bribery and corruption are also dealt with by ESG in an effort to create a more transparent framework.
 

What is your ESG investment process?

Our Responsible Investment Policy includes an “Exclusions List” which is basically a list of industries excluded from our investment process. Our investment process involves the collection of data/information from reputable and reliable third-party Asset Managers which are then screened against our Exclusion list.

How “ESG” are the portfolios you offer?

All of our ESG portfolios are “Article 8” portfolios under the Sustainable Financial Disclosures Regulation (“SFDR”). What this means is that our ESG Portfolios promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practice.

Where can I find more information?

We have a dedicated section on our website 'here.

Are ESG funds really helping society while providing good returns?

There are numerous studies showing companies that take their ESG responsibilities seriously tend to outperform in the long-run. The rationale is simple: Companies and funds that have good or improving ESG practises, will be subject to more prudent management by their senior executives, will be part of fewer controversies and will be good stewards of their ecosystems; all of which are suggestive of better long-term growth.  ESG portfolios have become prominent in the investment space after showing increased resiliency during the 2020 crisis with total assets reaching over $30 trillion.


The benefits to society are also evident: Investors now have a mechanism through which they can steer companies take their ESG responsibilities seriously. This translates to less pollution and more fairness, and the effects are immense.
The industry is still working on finding the best way to exercise this impact. New regulations are formalised and while there is still uncertainty on specific methodologies or rationales, one thing is certain: ESG investing will be a pivotal pillar of the future.
 


Business

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What is your experience in pension planning?

At Emergo, our financial experts have been helping people and companies chart safer, smarter courses towards financial security for decades. Our track-tested experience in financial services and global investment management, and our commitment to transparency, make LifeGoals a partner you can trust with your employees’ pensions.

Is LifeGoals regulated?

Yes, the LifeGoals Multi-Employer Provident Fund is a registered provident fund regulated by the Registrar of Institutions for Occupational Retirement of the Cyprus Ministry of Labour (Registration Number 3263). Emergo Wealth is regulated by the Cyprus Securities and Exchange Commission (License Number 232/14). Both LifeGoals and Emergo are regularly audited by leading international accounting firms.

Why should employees invest in a pension at all?

People are living longer and having fewer children today than ever before. This new reality has made retiring with government-backed social insurance pensions unsustainable. In Cyprus alone, if you earn under €50,000 per year, you’re only guaranteed 50% of your pre-retirement monthly income through social insurance. For wage earners with higher incomes, that number drops to between 20-30%.

The reality of retirement is quite different from those numbers. To retire comfortably, you’ll need at least 70% of your pre-retirement monthly earnings.

The only way you can do that is by investing in a smart, secure, track-tested pension fund like LifeGoals.

How much flexibility does LifeGoals give members?

All LifeGoals members can choose between six risk-adjusted retirement plans—from more conservative savings portfolios to investment strategies with quicker growth. In each case, our commitment to globally diversified funds safeguards member investments by guaranteeing that our portfolios are shielded from any geography-related or asset class-related risks.

What are your fees?

The Fees charged are dependend on the size of the workforce and the juristiction of each employer. For more details please contact one of our support specialists.

Can members check their own progress or switch plans?

We believe strongly in transparency. LifeGoals members can go online to check their net asset value and monitor their performance whenever they want. They can also switch plans up to once a week at no cost.

Where does LifeGoals invest?

LifeGoals invests  primarily through the ESG Portfolios but also through “LifeGoals Common Fund AIF” (the "Fund"). The Fund is an Alternative Investment Fund with multiple sub funds, authorized and regulated by the Cyprus Securities and Exchange Commission (License No: AIF04/14). Each sub fund has its own investment strategy and maintains its individual assets separate from the rest of the sub funds. Emergo Wealth Ltd is the authorized investment manager of the Fund.

Who is the custodian?

All your assets at every step of the process are under the custody of distinguished Central Securities Depositories which are separate from any of your investment managers. The custodians, which consist of prominent institutions like Citi, State Street and Clearstream, are there to safeguard that even in the unlikely event of one of the managers facing financial distress, your assets will remain intact.


Additionally, each LifeGoals of the LifeGoals Common Fund AIF compartments maintains its own segregated accounts which means that each fund is only exposed to its own investment performance. Gains or losses arising from investment performance are only confined to that specific compartment, and positive or negative moves in one fund will not affect other funds.


Even in the highly unlikely scenario of default, the LifeGoals funds face no default risk from either us or the managers of the underlying investments in your portfolios. We take the security of your assets extremely seriously and follow all the relevant EU regulations in place to safeguard client assets, to the letter.