What is a Privately Managed Porfolio?
With a privately managed portfolio, your assets or investments are registered and managed in your own name or in the name of your trust, close corporation, investment club or company. When most investors hear the words “privately managed”, they immediately think of high minimum investment amounts and high management fees. This impression is, however, changing rapidly, as investors become more and more informed. Privately managed or segregated portfolios nowadays offer a level of professional assistance to the broader investment public that was once a luxury afforded only by the largest investment accounts. It has become clear that the informed investor wants his or her investment to reflect their specific goals and objectives as closely as possible. Pooled investments nowadays simply cannot achieve the important levels of customisation, communications, tax considerations and investment selection required by the private investor. In a nutshell, a privately managed portfolio offers you, the private investor, the following advantages:
A Separate Account offers Comprehensive Investment Advantages
A Customised Approach
Specific investments or sectors can be avoided in accordance with your specific needs. You might not, for example, want any exposure to gold shares. Being invested in a pooled fund might not afford you this customised approach.
Portfolio Flexibility
The investment approach and/or your portfolio manager can be changed as your needs and circumstances change.
Direct Ownership
You have direct ownership of the instruments purchased, as opposed to owning units in pooled fund. You could also have a “portfolio” of unit trusts (Wrap Fund) which is registered in you own name, as well as in a LISP (Linked Investment Services Provider).
Fees
Running a pooled fund is a costly exercise. High Manco (Unit Trust) and Platform fees force pooled fund managers to charge upfront fees, back-end fees, penalty fees and high management fees. By investing in a privately managed or segregated portfolio you are not subjected to the high fixed cost structures of pooled portfolios and there are no hidden costs.
Tax Advantages
Your specific tax needs and circumstances can be taken into consideration when establishing your privately managed portfolio. However, kindly consult your Tax Advisor about any of our products and services as we are not qualified to express any opinions.
Superior Client Service
You have direct access to your fund manager and can schedule a meeting to discuss progress or specific issues that you might have.
Transparency
Your investments are not pooled with those of other investors and thus the performance and expenses of your account are not affected by the activities of other investors in the pooled portfolio. You have direct access to your funds and can monitor every single movement to the last cent.
Customised reporting
You will receive regular statements depending on your specific requirements (monthly or quarterly). Statements will reflect all activities during the specific period, i.e. contributions, withdrawals, trading activity, performance, interest or dividends earned, fees, etc.
To Conclude
Minimum investment amount requirements differ from manager to manager and are usually open for discussion. At Contego we have various funds and portfolios available with various minimum investment amount requirements. Please see the product range for more details in this regard.
When taking the above-mentioned points into consideration, it is no surprise to see that the demand for privately managed or segregated portfolios has grown dramatically during the last couple of years. A privately managed portfolio offers you the full range of services which can be custom designed to meet your specific needs. The key to investment success still lies in building a solid foundation for reaching your long-term goals.