It's our 18th anniversary!

How Do PAMM Portfolios Work?

A PAMM Portfolio is a collection of PAMM Accounts combined into a single entity. This type of investment allows the investor to diversify their risk as they can select PAMM Accounts with the optimal balance of potential risk and reward, as well as the amount to invest.

The Basic Idea of PAMM Portfolios

  1. The manager creates a portfolio which includes of a number of PAMM Accounts, and invests their own money serving as a guarantee that they will oversee the portfolio prudently. The manager can change the constituent PAMM Accounts which make up the portfolio as well as the share of these accounts in the portfolio by using his own capital and funds provided by investors.
  2. The investor monitors the effectiveness of the manager's portfolio from the site, and then invests in the PAMM Portfolio which they most like the look of.
  3. Trading is undertaken in the constituent PAMM Accounts of the PAMM Portfolio. Learn more about PAMM Accounts in the section "How the PAMM Account Works".
  4. The profit and loss is divided proportionally between all the participants in the PAMM Portfolio. The manager receives compensation as a share of the profit from investors.

How PAMM Portfolios Operate

The manager creates a PAMM Portfolio, investing his own fixed capital, and sets the terms and conditions for the investors.

Create a PAMM Portfolio

The investors decide where to place their funds, based on how long the PAMM Portfolio has been running, the level of return, degree of risk and the terms offered by the manager.

Choose a PAMM Portfolio

All funds invested in the PAMM Portfolio are distributed amongst the PAMM Accounts that are included in the portfolio.

The manager can change the composition and structure of the portfolio whenever they wish.

Trading is undertaken in the PAMM Accounts which are part of the portfolio with either positive or negative results.

The manager only receives compensation when, based on the overall composition of the portfolio, the PAMM Portfolio makes a profit.

+$50-$10+$40-$10+$40+$50+$40

Investors can track the level of return and the structure of the portfolio from myAlpari, and make a request to increase or decrease their funds in the account.

15% – manager's compensation

The profit, after the manager has received their compensation, is distributed amongst the investors in the portfolio, which includes the manager, proportionately to their investment.

Attention:

  • Past returns on the PAMM Portfolios are not a guarantee of future profits.
  • Alpari offers the PAMM Portfolio service for managers and investors, and does not act as a beneficiary of one side or the other.
  • Alpari does not take any part in the management of client funds invested in PAMM Portfolios.
Back to top