What is a managed account?
A managed account is an active investment in liquid markets. Our proprietary quantitative trading systems combine several strategies and generate a unique risk-adjusted performance over many years.
A managed account is characterised as a liquid and transparent form of capital investment. That means: there is generally no minimum investment period or only a very short one.
Opening an account
Investors open a segregated individual account in their own name at a bank regulated and approved by the financial supervisory authority or a brokerage business regulated and approved by the financial supervisory authority. The investor is then the sole account holder. In legal terms, a segregated individual account is similar to a notary’s escrow account. Deposits are specially protected by law and would be repaid in full to the investor should the bank become insolvent. Deposit insurance currently covers 100,000 Swiss francs or €100,000 for a German bank.
Minimum subscription amount
The minimum subscription for institutional investors is €250,000. Accounts in other currencies are available on request.
The power-of-attorney relates exclusively to instructions to buy, sell and trade on foreign exchange markets (forex - FX). The manager is not entitled and, moreover, has no possibility to have money or other assets held in the managed account transferred, paid out or delivered to himself or third parties.
The account holder receives a daily email from the bank with the statements for the managed account. They list all the relevant information and transactions for the day.
Costs are charged or debited to the client account by the bank or a brokerage business licensed by the relevant financial supervisory authority. Objectively speaking, the costs are rather high compared with other forms of investment. In return, with a successful manager this type of investment delivers correspondingly above-average net performance.
The cost structure is generally based on or more of the following variables: trading volume, performance and management fee. A high-water mark is used to model the calculation. In this very fair model the client does not pay part of the costs until the performance reaches a new high-water mark.
Once the managed account has been capitalised, the investor receives personalised access data to the online trading platform. Here investors are able to track all transactions down to the split-second and view the account balance on an ongoing basis. It is the ultimate in transparency.
Online access is available via an app for iOS and Android.