I might kick this post off by expressing one of the ideas I have had for a while.
Is there any interest amongst members in participating in a managed portfolio containing Hotcopper stocks?
It would need to be managed by a professional and licensed portfolio manager, within a separately managed account form of managed fund, in order to meet regulatory needs. I envisage an investment committee of our peers chosen by consensus from and by our members, who suggest stocks for inclusion in the model to the portfolio manager.
The simplest way is to have automatic discretionary trading activity and a model portfolio approach. The portfolio manager in this format adjusts model portfolio weights and all clients have identical portfolios, managed pro-rata. Given we tend to hold stocks that are smaller than conventional instos buy, we would need a tilted weighted model.
A more complex but feasible approach that could be run alongside would be to have an opt-in approach to each stock. In other words each member client would respond to a posting request about a particular stock that it is intended to purchase. If you agree then you are included in the buy group. This could be done in batches on an aggregated basis and then disaggregated by the admin team at the platform end.
All reporting would be by the Internet conducted by the platform. I envisage login would be via hotcopper although there would then be a secure link to the platform so that in reality the platform is reporting.
You would need to disclose your identity to the platform for regulatory reasons (and to get paid!) and to the licensed adviser (portfolio manager) preparing the application, which could be a centralised process, but otherwise privacy is assured.
All this technology is already available.
Disclosure: I wish to disclose a vested interest in this. In my working career I helped develop the managed account industry and ran a platform. These days I just trade for my entities and those of a few other people on a platform using a corporate authorised financial representative license and the platform has recognised my company as an investment manager on its platform. It manages two model portfolios. Subject to the platform agreeing, it would be a relatively simple step to add a specific hotcopper model portfolio. My company would have to charge fees, but these would be modest by industry standards.
