FAQ

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Ubanking Company

a. What is the legal structure in Ubanking?

Ubanking (.dk) is owned 100% by Danish domiciled entity Ubanking ApS

b. What is Ubanking?

Ubanking.dk is an advanced successor to www.investmentexcel.com. Like other products in the Ubanking ApS family Ubanking is a digital platform addressing financial investments for private investors.

c. Who has built Ubanking?

The Ubanking core modelling framework is technical as it is founded on models in statistics, mathematics and economics. However, most complicated is the User accessibility and flexibility optionality. Building this requires not only PhD technical involvement, but also very experienced professional people from financial markets. Ubanking is built using various consultants, albeit driven by MSc in Economics and Finance, author and CEO Thomas Peter Clausen.

e. Does Ubanking ApS have other services or products for investors?

Ubanking ApS also offers Ubanking Denmark, which is a digital Wealth and semi-digital Pension service. Ubanking Denmark is found on www.formuetesten.dk and www.pensionsvejen.dk (latter being active from 01.12.20).

g. Who has built Ubanking?

The Ubanking core modelling framework is technical as it is founded on models in statistics, mathematics and economics. However, most complicated is the User accessibility and flexibility optionality. Building this requires not only PhD technical involvement, but also very experienced professional people from financial markets. Ubanking is built using various consultants, albeit driven by MSc in Economics and Finance, author and CEO Thomas Peter Clausen.

h. What is special or unique by Ubanking?

The User-simple and User-driven investment and portfolio flow with professionally guided assistance from a robot. Ubanking essentially offers portfolio management software, yet with a professional algorithm to support User in decision making.

i. What is the objective or philosophy by Ubanking?

To equip also non-professionals investors with a set of transparent, easily understood and manageable tools. Tools, today only in the hands of professional bankers. Ultimately, Ubanking reduces the difference between professionals and amateurs to a point, where practically only luck matters for who is the best. E.g. guessing on tomorrows market return.

j. Why does banks not offer this?

Because banks have no commercial interest in making public their investment tools. Not to mention a product universe where investors can choose among cheapest products.

k. Why has this not been made before?

Because it can only be implemented with a high-level mix of know-how, technology and financial products.

Investment solutions

a. What are the Ubanking offered investment products?

Ubanking does not offer products per se, rather digital investment solutions. Hence products are ultimately wrapped into a mailed PDF file, containing all details for User’s optimal and perhaps personalized choice. Including specific trading-ticket details.

b. Is there anything special about the solutions. Derivatives and or leverage?

All Ubanking in-build standardized solutions assumes long-only 100% wealth with upfront money and 0 recurrent savings/dissavings. However, the system handles both leveraged as well as unleveraged portfolios based on the upfront amount. Even 0-upfront amount certificates can be used, though at LIBOR +/- 1.5% borrow lend cost.

c. What is the “Ubanking standard solutions” concept?

UB dynamically builds 4 global fund portfolios. Each optimal and defined by a User risk-appetite from 1-4. These solutions can be readily downloaded or be modified.

d. What is the “Ubanking User-driven solutions” concept?

UB offers an intuitive dashboard for portfolio management. When User creates a smart portfolio the UB robot assists to maximize output. All standard solutions can be reached in the dashboard by simply switching between them.

e. How does Ubanking come up with these solutions?

UB solutions are calibrated on a multi-asset class model portfolio of Funds. See the “Advanced How it Works”

f. Which financial instruments can I expect in the solutions?

Standard solutions are created from a model portfolio Fund structure of global asset classes linked to global economies. If User decides to modify either of the pre-defined 4 portfolios, then single stocks can be included. From the final allocation User can apply other mimicking return, risk and cost products and certificates.

g. Can I avoid bonds?

Yes, by switching off “bonds”. Portfolio will recalibrate and optimize based on 0% bond exposure.

h. Can I include single stocks like Apple Inc?

Yes. by switching on “single stocks”. User can select number of companies (stocks) for each asset class country, and also type in expectations of stock individual returns.

i. Is there currency risk in solutions?

Yes, its unavoidable in a global portfolio.

j. How is expected currency return calculated?

Equilibrium inflations differentials between base currency and home country. These are typically central bank long-term guidelines.

k. Is Ubanking only for new portfolios or can I analyze my current portfolio?

Both.

l. What about taxes?

Professionals, including Ubanking, builds investment solutions on a gross tax basis (but net cost). The assumption is it that tax, does not change the composition in portfolios.

m. Is Ubanking active or passive in philosophy?

Ubanking portfolios change according to short-term and long-term dynamics of risk and return. The needle in the compass is to maximize the chance of getting over time the best risk-adjusted return. Whilst long-term dynamics are founded in objective assumptions from BlackRock Inc., ECB, and IMF, short-term dynamics are founded in Ubanking risk-on/risk-off tactics.

Portfolio Portal

a. What is actually the Portal?

The Portal is User’s Portfolio Management system

b. How does User start?

The Portal is created so that User can start selecting a system optimal solution based on User’s risk-appetite. From “Ubanking Safe” (low risk) to “Ubanking Super Opportune” (very high risk). From this basis User can make modifications.

c. Is it difficult to use the Portal?

No, a Robot guides in moving User portfolio towards smart solution.

d. Can I remove bonds?

Yes, the Portal has a general on/off function. The Robot then builds a new optimal portfolio given deactivated bond risk. Bond exposure goes to cash exposure.

e. Why can I not change Bonds weights like Equity weights?

This is one place where Ubanking had to make a restriction or limitation on User maneuverability. 99% of Users have no (strong) conviction on relative pricing between bonds or interest rates.

f. Can I include single stocks?

Yes. You can even add own expectations of single stock return.

g. What is that “Gross equity exposure”?

If gross exposure is 100% the portfolio is a “normal” portfolio where all weights are positive and sum to 100%. When gross exposure on equity is higher than 100% we call “long equity exposure”, and if gross equity exposure is less than 0, we call it “short equity exposure”. The “gross” means that intra equity classes we can have maybe -200% and +500%. In this case gross is 300%.

h. How can I see it in the dashboard?

It’s a measure of (un)leverage versus Cash. So, 130% means a portfolio is created with e.g. 100 upfront investment and another 30 from borrowing. “Cash” will in this case show -30% or -30 (in money). With say 70% as gross exposure a portfolio is created with -70 in equities and 70 in cash.

i. How can I finance my long equity exposure (>100%)?

Either by borrowing funds in the money market or by entering into certificates or CFD’s.

j. How can I invest my short (<0%) equity exposure?

Either by investing proceeds in money market (short selling) or entering short CFD.

k. Can ETF’s be used for long/short

Yes, in CFD.

k. Is money market borrowing cost and invest cost included in returns?

Yes, net returns, and via costs.

l. What if I but leveraged certificates with margin is this chance of being closed down included in expected return?

We call this “Ruin” probability. No, with margin products expected return is somewhat overestimated in the Dashboard. Expected return is a horizon average of stochastic outcomes of exponentialized logreturns, that might have been very negative during horizon path.

m. Can I change actual tradeable Funds in the Investment Universe?

No, not directly in the Portal. But you can easily use the Portal “as if” you used other Funds. This works via the added excess return function, where User can subtract or add the cost difference between the Funds.

n. Can I buy licence to the system and use own assumptions and Funds?

Yes.

o. I really would like to have my own investment universe as platform for my portfolio. What can I do?

Build your own system or book session on www.pensionsvejen.dk/bookexpert (from 01.12.20).

p. Can I change assumptions of asset class or stock risk?

No. Risk assumptions are fixed in the system to simplify User’s flexibility. We can do it for you manually on www.pensionsvejen.dk/bookexpert (from 01.12.20).

q. I have fixed costs I want to include. Is that possible?

Yes. But you need to do it indirectly via the “Market return” or “Excess return” in the “Modify global equity” or “Modify local equity”.

r. What is Ubanking GRI?

It is a key figure that states User’s probability of reaching a certain minimum amount of wealth in the future given savings plan. So, e.g. GRI=40% could mean 40% chance of reaching minimum EUR 100.000 in 2 years.

Academy

a. What is the Portal Academy?

Ubanking Academy is an educational forum with video and Excel tutorials within various topics.

b. How does it work?

It is ecommerce. So, all Users can download products. Some are free others are priced.

c. Is there material supporting Ubanking calculations and key figures?

Yes.

d. Can you make these videos or Excel on request?

Please contact us. If the idea is sellable to others, we do it for free. Otherwise we charge.

e. Do I own the items I download?

Yes, but you cannot distribute to others than family. See Terms of Conditions.

Memberships

a. What is a Ubanking membership?

Ubanking.dk has 3 types of accesses to professionally build investment portfolios and the Portal differentiated by functional accessibility.  

b. What is the price?

Ubanking offers a Free Version with limited access, a full-access and partial-access membership around EUR 10-20/month.  

c. What if I just want a professional one-time solution?

You can do that by unsubscribing just after creation. Nordic investors, however can also use “Ubanking Formuetesten”, www.formuetesten.dk.

d. What is the advantage of keep rolling the membership?

The rolling membership User becomes a “Private Ubanking Client”. It means that the User receivers Newsletters on when Ubanking makes changes in the model portfolios. Changers based on short-term risk-appetite on/off dynamics and long-term structural risk-premia dynamics.

e. How do I pay?

On a rolling monthly forward basis.

f. How can I unsubscribe?

Go to unsubscribe in membership page

g. Do I have free access to the Academy with membership?

No. The Academy is an independent ecommerce window.

h. Can others use my login details?

No. It’s forbidden. See Term of Conditions.

Trading and support

a. What happens when the portfolio is created?

Members can then go to “Trade View” and see details. After that sent an E-mail with all details.

b. Can I trade these products myself?

All instruments are simple and can be traded on most online platforms. We use Saxo Bank, saxobank.com. Otherwise contact your bank.

c. What if I need further help with first-time implementation?

You can always book virtual meeting with one of our (human) experts. www.pensionsvejen/bookexperts.

d. I am an US citizen can I buy the UCITS funds?

Yes. Always through brokers. But in many cases without.

e. I am US citizen are there any US domiciled funds I can use?

See the “Academy”.

f. How does the long/short work. I am leveraged with 130% i9n gross exposure?

It means you need to finance 30% of your portfolio size.

g. What’s assumed as interest rate on financing in long (>100%) positions?

Cash rate + High Yield spread in local currency

h. How does short work. I have 80% gross exposure?

It means you physically short sell (shorting) 20%. Cash is reinvested at cash rate in local currency.

i. Can I use certificates instead of money?

Yes. But you have to find the certificates yourselves within the regions. Type 0 in portfolio size and use the allocation weights as money proxies into your certificate.

j. How do I rebalance when I receive a Newsletter?

You first go to Ubanking.dk and select a Ubanking solution or make another one yourself. Sent the mail and compare the new portfolio with your existing LIVE portfolio. Rebalance by trading the differences. Help can be found in the Academy or www.pensionsvejen/bookexperts.

k. Are the key figures dependent on rebalancing?

When Ubanking changes the 4 investment solutions, it is not a rebalancing. It is a recalibration to a new tactic or strategy. The 4 solutions are fixed weight benchmarks, that User is herself responsible for rebalancing to on a regularly basis. As Users “buy” the portfolios different days Ubanking cannot sent out when a rebalancing must take place. Ubanking can only recalibrate, and with recalibration of course User also get the compositions right again.

l. So, is rebalancing tricky?

No. In practice recalibration of Ubanking portfolios occur so frequently, that any drift in weights between Equity and Bonds or countries, is irrelevant.

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