Frequently asked questions

Ιnvest

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What is a portfolio and why do we 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 safeguards are there?

All your assets at every step of the process are under the custody/safekeeping of leading/established Central Securities Depositories which are separate from any of your investment managers. The custodians, which consist of prominent institutions like Citi and State Street, 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 portfolio 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.
 

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
Credit Suisse Goldman Sachs
Societe Generale VanEck

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 1% 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.


Retire

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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?

Members are charged a flat administration fee of €2.00 per month. The investment management fee amounts to 0.06% per month.

There is no investment management fee for participating in the savings portfolios.

The charge for companies with assets under management over €5 mil. amounts to €0.50 per member per month.

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 through “LifeGoals Common Fund AIF” (the "Fund") (License No: AIF04/14). The Fund is an Alternative Investment Fund with multiple sub funds, authorized and regulated by the Cyprus Securities and Exchange Commission. 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.