Frequently Asked Questions
Signing Up
How do I sign up for investment management services with Quantca Financial?
To sign up, register for a free account to login to Quantca Financial’s website. Client sign-up is available in the member’s section. You’ll need to complete a profile detailing your financial goals, risk tolerance, and investment preferences. After selecting an investment model, you’ll establish a brokerage account compatible with Quantca’s financial models.
Is there a minimum investment required to sign up for Quantca Financial’s services?
Yes, the minimum assets under management for Quantca Financial is $5,000 for the YieldSmart model. All other models have a $35,000 minimum due to needing to keep the accounts in compliance with regulations on margin pattern day trader accounts. Accounts will not begin to be traded by Quantca until they are properly funded.
What information do I need to provide to start using Quantca Financial’s services?
On the client application you’ll need to provide details about your financial situation, investment goals, risk tolerance, and preferred investment strategy. Additionally, Quantca Financial is subject to complying with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations. Clients must complete identity verification online and in some cases submit documentation to verify their identity.
General
What is Quantca Financial?
How does Quantca Financial manage my investments?
Quantca uses sophisticated algorithmic models to construct and manage portfolios, as well as timing when those portfolios will be held. These models are based on mathematical and historical analyses.
Who can use Quantca Financial’s services?
Quantca serves retail clients, accredited and qualified investors, as well as institutions and businesses in the USA only.
Where can I find more detailed information about Quantca Financial?
A full overview and disclosures about Quantca Financial can be viewed in our Firm Brochure and our Client Relationship Summary linked HERE. You can also verify our firm on the SEC website https://adviserinfo.sec.gov/
Billing
What fees does Quantca Financial charge?
Quantca charges a percentage of assets under management (AUM), ranging from 0.39% to 2% annually, depending on the chosen model. Qualified and accredited investors on a specialized model will also pay performance-based fees. These are charged in arrears and automatically deducted by the broker from your brokerage account.
Does Quantca Financial hold my funds directly?
No, Quantca does not hold client funds or securities. All assets are held by a third-party brokerage in the client’s name. Quantca manages investments in you brokerage account on your behalf.
How does billing work? Do I need to pay any fees upfront?
Quantca does not charge any upfront fees. Clients are billed fees either monthly or quarterly based on the end-of-period account value and the selected model. Fees are automatically deducted by the broker from the client’s managed brokerage account.
How would I cancel or liquidate/transfer funds?
Clients must contact the broker directly to transfer funds or securities. The broker can also liquidate holdings on your behalf. However, if you intend to liquidate or transfer, we recommend you contact us first to have the trading model algorithm removed from your account. Otherwise, liquidated funds may automatically be reinvested to match the trading model prior to transfer. You would follow the same process for partial liquidations/transfers. Management fees are charged to the account as long as it is funded.
Services
How often will I receive updates on my portfolio?
The brokerage will automatically send statement updates via email, and you can also pull statements at any time through the broker’s online portal.
Can Quantca adjust my strategy based on my changing financial situation?
Yes, clients are responsible for notifying us if there are changes to their financial profile to ensure the chosen model aligns with their current objectives. To facilitate this, send us a message using the contact form in the member’s section of the website.
What types of securities does Quantca Financial trade?
Quantca primarily trades stocks, bonds, and exchange-traded funds (ETFs).
Model Testing & Risk
How does Quantca test its models?
Before deploying any financial model, Quantca Financial tests its investment models through backtesting and forward testing.
Backtesting: This involves applying the investment model to historical market data to evaluate its hypothetical performance under decades of past conditions. The process helps refine strategies by identifying how they would have performed in different market scenarios. However, backtesting has limitations. For more information, see our firm brochure and the member’s section of the website.
Forward Testing: This method applies the model in live or simulated real-time market conditions to observe its performance as markets unfold. This process provides insights into the model’s practical effectiveness and adaptability to market trends.
Can I view the test results of the models?
Yes, Quantca Financial provides access to backtest results in the members section of the website. These results are shared for educational purposes to help clients understand the strategies employed and the testing Quantca has done on its models. Backtesting has limitations. For more information, see our firm brochure and the member’s section of our website.
Are my funds insured?
Investments accounts are not FDIC-insured, as it is not a bank account. Any investment in securities is carries risks, including the risk of loss. For more information on risk, please see our firm brochure and the member’s section of our website.
References:
[1] Quantca Financial LLC is a registered investment adviser. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Additional information about Quantca Financial LLC is also available on the SEC’s website at www.adviserinfo.sec.gov.
