Managed Accounts: Is it their time? How
During the past fifteen years in the investment fund industry There were many discussions on the use of so-called managed accounts as a tool to reduce the risk of the investor. Spores were deployed at against the liquidity crisis that began in 2008 and reached its peak in 2009, when investment funds and, therefore, investors have experienced significant withdrawal of capital, which led to a dramatic reduction in liquidity, restructuring, and "limbo." In some cases, investors do not only unexpectedly turned out to be "trapped" in the funds, but also suffered from their partners when they made the decision to take away their capital, or inform about early repayment obligatsiy.kupyury
In other words, when the investment capital at risk as a result of economic instability or a crisis, there is demand for alternative investment products that allow investors to achieve greater control and transparency of investment funds. Step forward towards achieving this goal can become a managed account.
concept of "managed account" means very different things. In the most simplest form it involves a contractual account to which the investor has a legitimate right, but for which his / her investment manager receives power of attorney to operate the account. In the proxy, at the discretion of the investor, negotiated all the necessary conditions, limitations and clarifications relating to account management. Thus, an investor is able to provide those contentious issues that may arise later. At the same time, if necessary, followed by the left right, the revocation in the short term.
Another alternative, the most significant, is an account Individual investment fund managed by an investment manager. In this case the investor provides the investment of assets in exchange for equity participation. (In the Cayman Islands, it may be, for example, company stock, equity in the partnership or trust share). The use of individual Fund investor enters a corporate limited liability in its structure to protect the investor from obligations arising from the leverage (Use of borrowed capital), or short sales (selling securities without a coating).
between the fund and investment manager is agreement under which the manager is delegated the right to implement the goals and strategies of investing. Increase in stock capital is a "platform" managed account. In this case, the manager chooses a structure that provides investors with access to a wide range of trading strategies, all designed as investment manager of the data.
seems, investment managers prefer managed funds are usually discretionary accounts (ie, controlled by the bank), as management of large portfolios of capital is usually more labor intensive and takes more longer.
Managed Account offers investors the opportunity to protect its interests through greater transparency and opportunity negotiate investment terms, without worrying about other problems that arise in the case of co-investors. In the individual investment funds do not need to develop a supplement to the agreement. Managed by individual fund may use the entire existing arsenal investment techniques conventional multiinvestitsionnyh funds, and all conditions of this fund will be registered in the appropriate memorandum or any other contract developed by the fund.
If you think "managed account" sounds too good to be true, then make sure that in fact reality is reality ... However, be aware that depending on the profile of the investor, that is attractive to one person may not be suitable for another.
Managed accounts have long been part of the "landscape" of investment funds. However, given the desire of investors to more control and transparency with regard to invest, along with the need to meet growing international demands, such accounts in the near future may become popular as never before. Naturally, we are talking about cases where the size of the main contribution to justify the cost of initial charges and subsequent detention of the individual investment fund.
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