Directly on the customer’s own account trading can be followed in real time by each investor. So, it can be seen whether investment philosophy, glossy brochures and marketing statements actually match the performance of the management. Especially when more short-term trading strategies, it is possible to get an overview of the risk in the course of trade with a regular look at the target. Apart from the advertisement promises of a company, customers in this way quite quickly realize whether they have grown the incoming risk in the long term. Transparency is a valuable aspect but also in investment strategies that keep target investments in the portfolio over the longer term in a complex composition. In various multi asset fund is become very clear in recent years, as temporarily no longer evaluated in the wake of the financial crisis single target investments or even had to be settled.
Although usually a little Part of the portfolio was affected, the pricing of some multi-asset suspended funds for weeks and months. Thus, the Fund was non-negotiable, and investors could no longer redeem fund shares in some much-needed liquidity. With the emotional tension that has thrown this uncertainty among investors, a severe loss of confidence is gone hand in hand, which has damaged the reputation of this form of investment to date. Apart from that asset managers by the financial crisis have become increasingly aware of this danger and still more carefully proceed regarding the selection of target investments, investors can avoid this risk: with managed accounts. In a managed account, a target investment evaluation failure would be although annoying, however the pricing of the overall portfolio would not still be. The liquidity of all non-affected positions would continue to be the customers free of charge. The account development would continue unchanged apart from the individual affected position and could continue to be seen. Transparency creates a degree of safety and knowledge about the trading style.
For continued good management performance, this can cause a very strong basis of trust with the customer. If it appears that the management know exactly, what’s doing it!”also the control looks are certainly less to the current portfolio allocation. Away from the marketing activities of the companies, this is a cornerstone for a solid long-term relationship between management and investors, not only institutional clients will appreciate. Chili assets.de chili assets.de is a comparison platform for managed accounts. Institutional – private investors and media participants have the opportunity to compare the performance of different managed accounts on this website. By Capitalteam consulting, researched and tested performance and risk indicators facilitate the selection of appropriate providers interested parties. For more information, see. Note to managed accounts managed Accounts in favour of mostly chance-oriented investment styles that are not suitable in any arbitrary percentage scale for the securities accounts of investors.