MANAGED ACCOUNTS
What is a Managed Account?
A managed account is a private investment account that is managed and monitored by a professional asset manager. The account owner can be either an institutional investor or an individual private investor. The dedicated manager actively makes investment decisions, taking into account the client’s needs and goals, risk tolerance, and asset size. Managed accounts are most common among ultra-high net worth investors.
ANNUAL ROI
INVESTMENT PERIOD
INVESTOR GROUP
This annual return is really worth talking about. Actively managed investments have generated above-average annual returns over the past twenty years. The range here is from 15% to over 100%. The costs of this investment option are mostly in the visible range, which is very easy for investors to calculate.
Interested parties should consider an investment horizon of at least 5 years here, so that the compound interest effect can have an optimal effect due to the high returns. Many investors invest a small portion of their assets here in order to then pay out the deposit after 2 years and then observe the investment for further years without risk.
This investment option is mainly chosen by more risk-conscious people. Since many managed accounts even guarantee a maximum loss limitation in writing, the risk is often more manageable than with conventional investments. Due to the defined risk of high quality managed accounts, this investment option is suitable for almost any portfolio and can help to protect or further increase existing assets. Profits can be easily reinvested to generate additional monthly passive income.
UP TO ANNUAL R.O.I.
Disadvantages of
Managed Accounts
MEDIUM TO LONGTERM INVESTMENT
DIFFICULT TO FIND PROFESSIONAL MANAGED ACCOUNTS
NOT ALWAYS REGULATED
MANAGEMENT & MAINTENANCE
HISTORICAL DATA PROVIDES A GOOD OVERVIEW
When we talk about investments, it should already be clear that a managed account is not a product for a few weeks. The above average returns need time to develop. Due to the volatility there will also be months with losses. That means you should give the investment at least 6-12 months to get representative results.
Either you have barriers to entry, as in the “private banking” sector of several million EUR, or these are offered in mass, but then hardly have a longer-term trading record and corresponding capital to prove that the strategies also work permanently. In addition, it is particularly difficult to find successful traders who are willing to share knowledge and time to offer a successful system as a product.
Many managed accounts are unregulated or have an off-shore license. This does not have to mean that this one is worse or better than others. However, a reputable regulation gives increased security.
Real estate requires management and professional maintenance. As soon as an investor acquires a property, it must be renovated, maintained and managed. Financing payments, real estate taxes, insurance, management fees and maintenance costs can add up quickly, especially if the property is vacant for a long period of time.
Most managed accounts can only shine with data between 6 and 24 months. Important data to make an investment decision are in retrospect mainly the drawdown, a constant positive performance and the costs of a managed account.
Advantages of
Managed Accounts
USE MAX. STRATEGY DRAWDOWNS
COMPLETELY AUTOMATED FOR THE USER
PROFESSIONALS WORK FOR YOU
HIGH FLEXIBILITY
HIGH TRANSPARENCY
LOW COSTS / NO HIDDEN COSTS
POSSIBLE PROFITS IN BULL AND BEAR MARKETS
DIVERSIFICATION
You think trading on the stock market is too risky? Then use managed accounts that have a maximum strategy drawdown. Thus a total loss or loss of the majority of the capital can be excluded.
A serious managed account leaves nothing to chance. After registration, the client signs a power of attorney to be allowed to trade with the investment made. Any trading activities are left to the professionals. As an investor, you can rest comfortably and check your account balance every 2-4 weeks.
Long-term successful managed accounts are managed by experts who have several years of practical experience in this field. For correspondingly large amounts, the trading account is managed personally, or for smaller deposits, special auto copy procedures are used.
Managed accounts have a high flexibility due to the relatively short holding period of the trades in order to quickly adapt to new market situations. Also the investor has different possibilities to use a managed account for himself and to dispose of his capital on a daily basis. However, the trading cycles of the account should be taken into account. With personally managed accounts, all trades must be closed in order to dispose of the capital as an investor. Most managed accounts make the capital available after 14 days after the withdrawal request.​
The investor receives regular insights into his trading account. Depending on which account model the investor prefers, all trades, profits and losses can be viewed.
The investor only pays a performance fee, which is only charged in case of success, due to the high watermark principle. The well-known trading fees such as swaps and spreads are included in the performance of successful managed accounts from the beginning and are not deducted from the investor afterwards. Further costs are usually listed separately or can be requested at any time.
One of the most important points for CFD-based managed accounts is the ability to make profits in both rising and falling markets. This allows the risk to be better distributed in highly volatile markets and the capital to work more optimally.
Managed accounts usually trade several Underlying. Very often correlations are used and different Underlying are traded at the same time. In addition, a risk diversification is achieved through different Underlyings. In addition, many smaller positions are traded rather than only a few large ones.
How it starts, a personal note
So-called managed accounts or automatic trading systems are many in the world. Unfortunately, it is very rare to find systems that have the advantages mentioned. There are many dangers: The wrong broker, no set cost strategy, pure EAs, too short trading history, lack of expertise of implementation, non-functioning programming or the lack of experience to act with large capital on the stock market and still be successful.
We wanted to find a trader who could prove with the appropriate expertise and practical experience that it is possible to achieve an above-average annual return in the long term, works very transparently and charges low fees. After many years of searching, one day we received a call. That’s when it all started.
The special feature:
The trader already owns a company (wealth management), which means that the responsibility no longer lies with just one person, but with a professional team. This reduces trading downtime rather than pausing positions to official stock market opening hours and regular cycle interval positions. In addition, the trader is not financially dependent on short-term profits from clients, has been professional, successful and independent for many years and can prove successful trading with live managed systems for over 7 years. Also exceptional is the written guarantee of a maximum system drawdown of 35% on the FCA regulated trading account. The performance fee of 35% is charged only in case of positive monthly performance thanks to the High Water Mark principle. For many interested parties certainly the most important thing: the average annual performance is currently well above 100% and is thus unparalleled. Further data can be found in the explanations.
After some negotiations we succeeded in marketing his know-how and success, so that other investors can profit from it. However, the entry barrier of 1 million EUR is difficult to overcome for some clients and we started working on ways to develop further products from the successful managed account program, so that we can now also advertise this opportunity to interested parties under 1 million EUR.
LINKS, PARTNER & PRODUCTS
In the following section, we would like to introduce partners, products and links to providers with whom we or trusted people have had good experiences and who offer sometimes unusual solutions.
PLEASE NOTE:
From some of the companies listed here we receive a commission. AF-Intermediary is not allowed to give investment advice. All actions are your personal responsibility.