How to set up your Portfolio builder

You can create a Portfolio Builder plan from the Portfolio Builder tab in your Portfolio or in the Marketplace.

1. Open the Portfolio Builder tab.
2. Select Create a plan.
3. Choose Automatic setup or Custom setup.
4. Follow the steps to set-up your plan.
5. Review the plan summary.
6. Accept the Portfolio Builder Terms and Conditions and the risk acknowledgement.
7. Confirm to activate the plan.

The minimum amount required to activate a plan is €1,000.

Automatic setup

With Automatic setup, you choose the amount to allocate and the Portfolio Builder applies the default settings shown during the setup process.

By default:

• all catalogues currently tradeable on the marketplace are selected; and
• the standard settings for the maximum allocation per catalogue and pricing preference are applied.

Review the complete plan summary before activation.

You can change the settings later while the plan is active. Changes will apply to new buy orders placed with your remaining available funds. They won't sell, remove, or otherwise change the catalogue shares you've already acquired.

Custom setup

Custom setup allows you to select each of the plan settings yourself.

1. Select the catalogues

The Portfolio Builder will only place orders for catalogues included in your selection.

You can select all available catalogues or choose individual catalogues. The search function and the High Yield and Stable Royalties filters can be used to narrow the list.

These filters are based on historical royalty data. A catalogue’s classification may change over time, and past royalties do not indicate or guarantee future royalties or returns.

Selecting fewer catalogues concentrates your allocation into a smaller group of catalogues. Selecting more catalogues spreads it across a wider group, subject to market availability and the other limits in your plan.

A catalogue cannot be included in your Portfolio Builder selection while you have an open sell order for shares in the same catalogue.

2. Set the maximum allocation per catalogue

This setting limits how much of the Portfolio Builder’s total value may be allocated to one catalogue. It is a maximum, not a target.

When a catalogue reaches the applicable limit, the Portfolio Builder will not place additional buy orders for it. This can change if you add funds to the plan or if price per catalogue share shifts, bringing its allocation back below the limit.

The setting does not guarantee a particular level of diversification. The final composition of the portfolio depends on the catalogues selected, available funds, market supply, order execution and changes in catalogue values.

3. Select a pricing preference

The Portfolio Builder places buy orders below each catalogue’s reference price. The pricing preference determines the typical distance between your order prices and that reference price.

• The reference price is a benchmark calculated once per day for each catalogue, corresponding to the weighted average catalogue share price of the previous day's trades. It is not a guaranteed transaction price, it won’t always match the current trading price, and does not guarantee that any order will be executed at that specific price. To review current trading prices check the order book.

Orders placed further below the reference price may take longer to execute. Orders placed closer to it may be executed sooner. Either way, execution is not guaranteed.

These percentages are indicative. Individual order prices may vary as the Portfolio Builder distributes orders across different price levels and updates them in response to market activity.

4. Allocate funds

Enter the amount you want to allocate. The funds remain within your ANote account but are reserved for the Portfolio Builder's buy orders while the plan is active.

If you don't have enough funds in your account, you can top up directly from the Manage funds section: 

The minimum amount required to activate a Portfolio Builder plan is €1,000.

If it's the first time adding funds, check the step-by-step guide to add funds.

5. Review and activate the plan

The final screen shows the settings and amount selected. Review them before activating the plan.

Activation requires acceptance of the Portfolio Builder Terms and Conditions and acknowledgement of the investment risks. After activation, the Portfolio Builder will begin preparing orders based on your settings. It can take up to 2 hours from activation to see the buy orders.

Nothing in this article constitutes investment advice.Purchasing royalty interests involves risk, and you may lose the capital you commit. The value of royalty interests fluctuates over time, and you may gain or lose money. Past performance is not a guarantee of, nor necessarily indicative of, future results. Any decision to participate should be made only where it complies with the laws and regulations that apply to you. 

If you have any questions, contact our Customer Support Team at support@anotemusic.com.