PRIVATELY MANAGED INVESTMENTS GUIDE & INFORMATION
What are Privately Managed Investment Portfolios?
Privately Managed Portfolios are stand-alone, segregated investment portfolios held separately for each individual client in the name of each individual client. The portfolios are never pooled. They are held separately in the safe custody of recognized stock broking firms such as Investec Securities but managed by Asset Management specialists.
Do you want your wealth to grow in real terms? A Privately Managed Portfolio makes this achievable, as recognized for some years by high net worth individuals. Investors who previously were not able to afford the investment luxury of having a privately managed portfolio can now look to Asset Management specialists like to manage their invesments.
The optimal investment structure is the Privately Managed Portfolio. Privately managed portfolios cut costs by investing directly into individual shares and bonds, by-passing the expensive structure of a collective investment scheme such as a unit trust. Privately managed portfolios are able to cut out the numerous costs associated with unit trusts. These costs can add up to a substantial amount which over and above the asset management fee, will include custodian, audit, legal, trustee and platform fees. Add to this the fees of the middle men, the army of financial advisers who are paid commissions to distribute unit trust investments. Cutting out these costs can save as much as 4% a year which compounds into a significant amount over time. Your saving after around 15 years may be as much as your original investment.
These numerous costs are absent from ThinkMoney's investment partner, Overberg Asset Management's, privately managed portfolios. The only annual fee levied by Overberg Asset Management is its asset management fee, which in itself is competitive at 1.5% per annum. There are no hidden costs or penalties for early withdrawal, there are no restrictions whatsoever. There is complete transparency down to the last rand and cent. There is complete flexibility, funds can be added or withdrawn either on a regular basis or on an ad hoc basis.
Privately Managed Portfolios are smaller and therefore more maneuverable. It is easy to accumulate meaningful holdings in any share and to sell quickly when necessary. Unit trusts on the other hand can be cumbersome. The larger they become, the harder it is to perform.
In a Privately Managed Portfolios, funds are not invested in one lump sum as per a unit trust investment. Funds are invested gradually, typically over two to three months, and normally on days that the market is down rather than up. This ensures extreme care in the purchase price of each investment within the privately managed portfolio. The purchase price is a significant determinant of investment performance.
A stand-alone, segregated, privately managed portfolio is a unique signature portfolio and can therefore be truly tailored to suit the exact needs, requirements, and expectations of each individual client. This is a continuous process facilitated by the constant review of each client's individual needs and expectations by Overberg's dedicated client relationship managers. A privately managed portfolio is akin to having your own exclusive unit trust, with personalized service but minus the costs.
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