As the repressive monetary and interest rate policy being adopted by the main central banks globally and the resulting low interest rate environment in the bond markets are currently allowing only inadequate risk management, the area of ‘managed accounts’ will remain closed to new capital until the implementation of Project KLF!
In principle, managed accounts can be opened individually by institutional investors or asset management companies at an investment bank, and under their own name.
This involves an open, decentralised and cost-effective framework, whereby M|E|W Consul’s sphere of competence can include the areas of risk management, overall strategy, individual investment decision-making and execution.
Investors have full visibility of all their completed investments and changes in investment positions at all times, as well as the current value of their overall portfolio and individual positions, and their volatility and performance across all time horizons.
Risk limits can be individually agreed upon as stipulated by the investor.
The investment goal is similar to that of hedge funds/total return strategies, whereby the philosophy of M|E|W Consul and the basic concept of comprehensive risk management is always to explicitly rule out a direct leverage through borrowing!
Indirect leverage through the active use of derivatives is the standard procedure.
Managed accounts administered in Europe are used to convert total return strategies into:
If required, managed accounts including or excluding capital security can also take the form of an investment fund, certificate, bond, trust or special purpose entity.
Sustainability criteria can also be factored in as stupilated by the investor.
Please register for further information on ‘Managed Accounts’!