Many investors had tried traditional Unit Trust investment, either through banks or DIY Fund platforms.
Most retail investors choose their funds simply by headlines.
Some investors fall victim to their own investing psychological or behavioural traps.
Others got it wrong sometime and decided to stay out thereafter.
Get to know this “private-banking Lite” solutions.
An option to tap into the expertise of the professional wealth service company.
What is Managed Account of Funds?
Managed Accounts is the investment solution of choice among private banking clients. It is increasingly made available to the mass market recently.
A Managed Account of funds is a unit trust portfolio management service designed to make investing easy for retail investors.
Once the investors have selected the investment strategy that suits them, the day-to-day portfolio rebalancing and implementation decisions is then delegated to an Asset Manager.
What is in the Portfolio?
Each Managed Account of funds portfolio is a selection of unit trusts, chosen by professional portfolio managers to achieve the investment objectives and desired risk-adjusted return characteristic.
The portfolio is often diversified across multiple fund houses, multiple asset classes, and many different securities.
There are usually portfolios of various strategies the investors can choose from, depending on their respective investing needs.
How does it work?
It often begins with a process to determine the investor’s financial goals and risk preferences.
A suitable Managed Account strategy that best corresponds to the requirements may then be recommended to the investors.
Once the investors have accepted that recommendation, the implementation, ongoing management and monitoring of the investment will be taken over by the Asset Manager. The investors are usually updated through trade alerts, periodic reports, etc.