Welcome to Managed Accounts

With a managed account you appoint a Portfolio Manager to make all trading, timing and investment decisions on your behalf. You can decide on an investment period and risk profile that suits you. And you still receive your account statements as and when you wish. A managed account can be suitable for someone who doesn’t have the time or the expertise to watch the market and actively trade it. If you are new to the markets then you can also learn from the trades done by the portfolio manager.

We can use leverage, derivatives and short positions in an attempt to maximize total returns, regardless of market conditions. This means that your returns are not correlated to the overall market performance — so you can profit from downturns and have a positive return in a sideways or down market. With our model portfolio managed accounts we attempt to bring some of the advantages of a hedge fund to the common investor. These model portfolio strategies feature higher liquidity than hedge funds, no lock-in period and lower fees.

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Some definitions below. To view more, visit our A-Z financial glossary.

Leverage

The most common example of leverage is when you purchase a home with a loan (mortgage bond) from the bank — you typically only put down a small amount as a deposit and you loan the rest of the purchase price from the bank. You can also leverage your financial positions by means derivatives. With these instruments you also put down an initial good faith deposit in order to obtain exposure to a larger amount.

Derivatives

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, commodities, currencies and market indices.

Shorting

When you expect the value of a security to fall, and you borrow the security to sell it now with the expectation of buying it back at a lower price later on in order to make a profit. For example, a trader borrows shares from a broker and sells them on the open market in order to have a short position in that stock. This is commonly done via CFD’s or futures.

 

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