Frequently Asked Questions

Pinvest offers a simple, efficient investment process tailored to the client’s needs. The firm builds a portfolio aligned with the investor’s risk profile, using exclusively low-cost UCITS ETFs. Pinvest also provides continuous monitoring and automatic portfolio rebalancing, absorbs trading costs, and ensures that investments are safely held through Interactive Brokers, a globally recognized entity. Additionally, it offers full transparency and permanent access to the client’s account, allowing clear and reliable tracking of investment performance.

Yes. These portfolios are designed for individuals who do not have the time or the necessary knowledge to manage their investments directly. Based on the client’s personal information and financial goals, Pinvest assigns an investment profile and a model portfolio tailored to their needs.

It provides several key benefits for the investor: global diversification, professional management by Pinvest, reduced costs, investment simplicity, and a strategy aligned with the client’s financial goals.

Global diversification consists of distributing investments across thousands of stocks and bonds from different countries. This approach seeks to reduce concentration risk in a single market and improve portfolio stability and resilience against local or sector-specific economic changes.

All investments involve certain inherent risks, including:

• Market volatility.
• Economic risk.
• Global or geopolitical risks.
• Inflation.
• Behavioral risks, such as making investment decisions driven by emotions.

Pinvest mitigates these risks through global diversification, a disciplined approach, and continuous investment monitoring.

Market declines are a normal part of the investment cycle. In the short term, markets can be volatile and experience drops, but historically they have tended to recover over time.

The philosophy of index investing is based on this reality: instead of trying to anticipate short-term movements, it focuses on maintaining a diversified strategy aligned with the investor’s risk profile. Each portfolio is designed to withstand different levels of volatility according to that profile.

In the face of a market decline, the most recommended approach is usually to maintain investment discipline, avoid impulsive decisions, and respect the long-term horizon. Structural adjustments should only be considered when the investor’s risk profile or objectives change, not as a reaction to temporary market movements.

Volatility, is to be expected, and discipline, diversification, and a long-term focus are the main tools to navigate these periods more solidly.

An ETF (Exchange-Traded Fund) is an investment fund that trades on the stock exchange in a manner similar to a stock. This instrument allows investors to access a wide variety of stocks, bonds, and other instruments in a diversified way and at a very low cost.

A UCITS ETF is an investment fund regulated under European Union regulations, designed with high investor protection standards and tax advantages for international clients.

A fixed-term deposit is an investment in which a person deposits their money in a bank for a specific period and receives a fixed interest rate in return. From the outset, the investor knows how much they will earn, and the principal does not fluctuate, making it an option focused on security and short-term objectives. However, its return depends directly on prevailing interest rates, which may rise or fall over time.

A portfolio, on the other hand, is an investment strategy that distributes capital across various stocks and bonds globally, following broad market indices. Its value may fluctuate, but it is designed for long-term wealth growth, with high diversification and without relying on a fixed rate.

The difference between the two lies in their approach: fixed-term deposits prioritize predictability and immediate stability, while portfolios aim for greater growth over time, accepting valuation fluctuations as a natural part of the investment process.

UCITS ETFs can be either distributing (they pay dividends) or accumulating (they reinvest dividends and interest back into the fund). At Pinvest, we use accumulating share classes to help enhance long-term growth through the power of compound interest.

Additionally, accumulating UCITS ETF share classes are not subject to dividend withholding taxes, since dividends are reinvested rather than distributed. Furthermore, UCITS funds are generally treated more favorably than U.S. ETFs for estate planning purposes, as they are not considered U.S. assets and are therefore not subject to the estate tax rules applicable to ETFs domiciled in the United States.

*Pinvest LLC does not provide tax advice. Investors should consult their own tax advisors before making investment decisions.

The process to start investing consists of:

1. Completing a brief questionnaire that determines the appropriate portfolio model based on the client’s risk tolerance.
2. Following the onboarding process by providing the necessary information to create the portfolio.
3. Waiting for the portfolio to be activated, which is confirmed via email.
4. Downloading the Pinvest app from the App Store or Google Play and making the first investment.
5. Monitoring and managing the portfolio with the option to make additional contributions or withdrawals, while Pinvest handles periodic rebalancing and keeps the strategy aligned with the client’s profile.

This process allows clients to invest safely, in an organized manner, and in alignment with their financial goals.

The process of opening a model portfolio takes between 15 and 20 minutes. After entering all the required information, the client will receive a confirmation email within 48 to 72 hours, indicating whether the portfolio has been successfully opened or if additional documentation is required to complete the process.

The investment profile is determined through a questionnaire designed to assess key aspects such as the investment horizon, risk tolerance, and financial goals of the client, among others.

Yes. Completing the investment profile questionnaire is a prerequisite for investing with Pinvest. This allows the firm to recommend a portfolio that matches the client’s profile, ensuring that the investment is aligned with their financial goals and risk tolerance.

The investment profiling test includes questions about investment objectives, time horizon, risk tolerance, and expected returns. It is designed to be quick and simple, allowing completion in less than a minute.

The results help determine the most suitable portfolio model, ensuring that the investment aligns with the level of risk the client is willing to take.

To open a portfolio with Pinvest, the client must provide basic verification information and documents, including:

• Valid passport.
• Bank account statement or a copy of a utility bill (to verify address).
• Basic personal information (contact details, general information, and data required for regulatory compliance).

This information allows the completion of the identity verification process and ensures compliance with security and fraud prevention regulations.

The products that make up the portfolio (stocks and bonds) are selected through market analysis, taking into account risk management and applying strategic allocation principles. This approach is carried out with a long-term perspective, aiming to optimize the balance between growth and stability according to the investor’s profile.

Pinvest recommends five portfolio models, designed to suit different investor objectives and risk tolerances:

• Aggressive: 0% fixed income and 100% equities.
• Growth: 20% fixed income and 80% equities.
• Balanced: 40% fixed income and 60% equities.
• Moderate: 60% fixed income and 40% equities.
• Conservative: 80% fixed income and 20% equities.

Each model aims to balance potential returns and risk levels according to the client’s needs, facilitating the construction of a portfolio aligned with their financial goals.

The suggested time frame and estimates are developed using historical metrics based on reference indexes to generate illustrative scenarios. To learn about the sources, assumptions, scope, and limitations, please refer to the “Methodological Guide: Suggested Term and Investment Projections”.

Pinvest recommends different portfolio models because each client has a unique risk tolerance and investment needs. This portfolio model structure allows:

• Keeping costs low for smaller investments.
• Scaling the complexity and scope of the portfolio as the client’s assets grow, increasing diversification when it adds value.
• Ensuring clarity and discipline in portfolio management at every stage of the investment.

Yes, with certain rules. Once the suitability questionnaire is completed, the platform recommends one of 5 portfolio models based on the results, evaluating the investor’s risk tolerance and the amount to invest, among other considerations.

The client can choose the recommended model or one with lower risk. They cannot select a model with higher risk than the recommended one (those options are disabled).

Example: if the questionnaire recommends Portfolio 3, the client can choose 3, or go down to 1 or 2. Models 4 and 5 are disabled.

After investing: the client can reduce their risk at any time through the app. If they wish to increase risk, they will need to retake the questionnaire to update their investor profile.

An aggressive portfolio model primarily focuses on equities, investing almost exclusively in stocks. This type of portfolio aims to maximize potential returns, assuming a higher level of risk and volatility.

A conservative portfolio model maintains a high proportion of fixed income, such as bonds issued by companies or governments, with the goal of reducing volatility and protecting the investor’s capital, offering stable growth over time.

A growth portfolio model is one that maintains a high allocation to equities, such as company stocks, with the objective of achieving significant capital appreciation over time. It is designed for individuals with a medium-high risk tolerance who are willing to maintain their investment for at least 7 to 10 years, accepting fluctuations in the value of their investment in pursuit of attractive medium- and long-term returns.

A moderate portfolio model maintains a balanced allocation between fixed income and equities, with the objective of providing both stability and capital growth over time. It is designed for individuals with a medium-low risk tolerance and an investment horizon of at least 3 to 4 years, seeking enhanced returns while maintaining a controlled level of volatility.

A balanced portfolio model maintains a combination of fixed income and equities, with the objective of achieving capital growth over time while maintaining a moderate level of volatility. It is designed for individuals with a medium risk tolerance and an investment horizon of at least 4 to 5 years, who are willing to accept fluctuations in the value of their investment in pursuit of attractive medium-term returns.

Pinvest cannot guarantee future returns, as results depend on market conditions and asset performance. However, each portfolio model has an expected average annual return, based on the historical performance of the funds, which serves as a reference to guide the client. It is important to note that past performance does not guarantee future results, and the strategy aims to maximize the return potential according to each investor’s profile.

Fixed income refers to bonds issued by companies or governments that provide periodic interest payments. These instruments aim to preserve capital and generate predictable income for the investor.

Equity income refers to investments in company stocks, which offer a higher potential return, although with greater volatility. This type of investment allows clients to participate in the performance and growth of the companies they invest in.

Compound interest is the process by which the earnings generated by an investment are reinvested to produce new earnings, accelerating the growth of capital over time.

Pinvest offers globally diversified portfolios starting from USD 5,000, using low-cost UCITS ETFs, which allows access to an efficient and well-structured investment from the outset.

Yes. Clients can access their portfolio at any time through the Pinvest app, where they can check their returns, make additional contributions or withdrawals, and monitor the evolution of their investments in a secure and transparent way.

The Pinvest app allows the client to check and track their investment in a simple and secure way. From the app, the client can:

• View portfolio composition: check which assets make up the investment and the percentage each one represents.
• Review updated returns: track accumulated performance with information available until the previous day’s close.
• Confirm the portfolio model: view the model assigned and selected based on the investment profile the client has chosen.

Yes. Clients will be able to access monthly reports in PDF format from the app. These reports provide a detailed summary of the investments and portfolio performance. Additionally, they can be downloaded directly from the platform for reference and record-keeping.

For additional contributions: Clients need to transfer funds from their bank to the account provided in the app and upload the transfer receipt in the Pinvest app.

For withdrawals: Clients submit the request through the app. Pinvest liquidates the necessary investment positions to generate the requested cash. Once the cash is available, it is securely disbursed to the client’s bank account.

In this way, both processes are managed securely and transparently.

Yes. Clients can withdraw their money, either partially or totally, at any time and without penalties. In the case of a partial withdrawal, the requirement is to maintain a minimum investment balance of USD $5,000 in the account.

Transfers have an operational cost: the first withdrawal of each month is free of charge, and additional withdrawals within the same month are subject to a fee of up to $10 per transaction.

This approach offers flexibility to the client, maintaining clarity and transparency in the associated costs.

Yes. The client can liquidate their investment, either partially or totally, at any time, at market value, without commissions or penalties.

Periodic rebalancing is the process of adjusting a portfolio when the assets, such as stocks and bonds, have risen or fallen too much, changing the original investment allocation. This involves selling some of the assets that have grown too much and buying more of those that have lagged behind, thus maintaining the portfolio’s balance. This process helps to:

• Maintain the appropriate level of risk according to the client’s profile.
• Avoid emotional decision-making in investment management.
• Systematically apply the “buy low and sell high” strategy.

No. Pinvest performs periodic rebalancing of portfolios without generating additional costs for the client, as it absorbs the execution expenses associated with these transactions.

In many cases, UCITS ETFs (domiciled in Europe) help to reduce certain succession risks associated with instruments domiciled in the U.S. In the event of death, the investment passes to the beneficiaries according to the account setup (heirs or joint account) and the applicable regulations.

Pinvest charges a management fee of 0.80% per year for portfolios consisting of UCITS ETFs.

A custodian is a regulated financial entity responsible for safeguarding and protecting the client’s investments. It holds the assets in the investor’s name, manages them securely, and ensures they are properly segregated and protected.

Pinvest manages the client’s investments, while Interactive Brokers LLC (“IBKR”) acts as the custodian, responsible for safeguarding the assets and executing all transactions.

Interactive Brokers LLC (“IBKR”) protects assets through segregation, compliance with strict regulations, and the use of advanced security systems, ensuring the integrity and protection of each client’s investments.

Interactive Brokers LLC (“IBKR”) is the custodian and broker where the client’s investments and account cash are held. It maintains assets in the client’s name and segregated from those of the company. Additionally, it operates under regulatory supervision and is a member of industry organizations in the U.S.

Interactive Brokers Group is listed on Nasdaq (IBKR) and is part of the S&P 500, reflecting its size and market standards.

Pinvest clients can communicate directly with the support team to resolve any questions related to their portfolio or the use of the application. Clients can do so through the following channels:

• Toll-free phone: 1-833-741-6428, available Monday to Friday from 9:00 AM to 5:00 PM (Miami time).

• Email: info@pinvestcapital.com

The Pinvest team provides specialized assistance to ensure clients can manage their investments safely and efficiently, receiving clear guidance and timely support for all their inquiries.

Pinvest LLC is owned by Pichincha Holdings LLC, which belongs to Dr. Fidel Egas Grijalva, who is also the majority owner of Banco Pichincha Holding Group and Intercredit Bank in Miami. Banco Pichincha Holding Group is the majority shareholder of the largest private commercial bank in Ecuador and has a presence in Spain, Colombia, Peru, Panama, and a branch in Miami.

Pinvest is a Registered Investment Advisor (RIA) regulated by the SEC in the United States. It specializes in building globally diversified, simple, and low-cost portfolios using UCITS ETFs. In addition, Pinvest provides specialized advisory services for institutions and family offices, offering personalized solutions based on each client’s profile and objectives. Its approach is based on discipline, evidence, transparency, and long-term efficiency. Registration with the U.S. Securities and Exchange Commission (“SEC”) does not imply any level of skill or training.

An RIA (Registered Investment Advisor) is an investment advisory firm registered and regulated by the U.S. Securities and Exchange Commission (“SEC”). Its main function is to provide professional guidance in managing investment portfolios, always acting in the client’s best interest. RIAs are subject to strict standards of transparency, ethics, and fiduciary responsibility, ensuring that investment decisions are made to protect and optimize the investor’s assets. Registration with the U.S. Securities and Exchange Commission does not imply any level of skill or training.

Pinvest clients can communicate directly with the support team to resolve any questions related to their portfolio or the use of the application. Clients can do so through the following channels:

• Toll-free phone: 1-833-741-6428, available Monday to Friday from 9:00 AM to 5:00 PM (Miami time).

• Email: info@pinvestcapital.com

The Pinvest team provides specialized assistance to ensure clients can manage their investments safely and efficiently, receiving clear guidance and timely support for all their inquiries.

Yes. Pinvest has a physical office located at 396 Alhambra Circle PH 2, Coral Gables, Florida, United States.

No. Pinvest is a Registered Investment Advisor (“RIA”) regulated in the United States that provides financial advisory and investment management services. Custody and trade execution are carried out through Interactive Brokers LLC (“IBKR”), a globally recognized financial entity known for its stability and security.

Interactive Brokers LLC (“IBKR”) is the custodian and broker where the client’s investments and account cash are held. It maintains assets in the client’s name and segregated from those of the company. Additionally, it operates under regulatory supervision and is a member of industry organizations in the U.S. Interactive Brokers Group is listed on Nasdaq (IBKR) and is part of the S&P 500, reflecting its size and market standards.

No. Pinvest does not guarantee returns, as no participant in the financial market can ensure future results.

Market timing is the attempt to guess the best moment to buy or sell an investment. Therefore, Pinvest does not engage in market timing, as it follows a disciplined approach without short-term predictions.

In the advisory service, Pinvest supports the client with recommendations aligned with their investment objectives. In investment management, the client delegates investment decisions to Pinvest, based on the risk profile determined by the suitability test.

At Pinvest, the privacy and security of clients’ financial and personal information are top priorities. The firm implements administrative, technical, and physical security measures designed to ensure the confidentiality and integrity of data. Pinvest’s security systems and controls are regularly reviewed by independent third parties according to the highest industry standards, and external penetration tests are conducted periodically to ensure ongoing protection.

These practices not only safeguard client data but also reinforce Pinvest’s fiduciary duty, ensuring that all investment decisions are made with transparency, objectivity, and in the best interest of each client.

Yes. Pinvest complies with U.S. regulations as a Registered Investment Advisor (RIA) registered with the SEC (U.S. Securities and Exchange Commission) and, at the same time, adheres to international standards for clients from other countries, including Ecuador, Peru, and Colombia, providing transparency and security in investment management.

Registration with the U.S. Securities and Exchange Commission (SEC) does not imply any level of skill or training.

If a Pinvest client suspects they have been a victim of identity theft or that their access information has been compromised, they should immediately contact Pinvest through the official channels available on the website or by email at info@pinvestcapital.com. The firm will block the user account and reset access credentials to protect the client’s information.

The Pinvest team will provide specialized assistance to assess the situation, take corrective measures, and guide the client through the necessary steps to mitigate any risks associated with identity theft. These actions are part of Pinvest’s commitment to the security and protection of its clients’ interests.

If a client forgets their password, they can recover it at any time through the Pinvest app by following the password reset process.

An OTP (One-Time Password) is a single-use code sent to the client to verify their identity when logging in or performing operations in the app. This mechanism adds an extra layer of security, ensuring that only the authorized user can access their portfolio.