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Ipinapakita ang mga post mula sa Setyembre, 2017

Pros and cons: Understanding discretionary investment accounts

Imahe
In definition, a  discretionary investment account  is a form of investment management in which clients let experienced Asset Managers independently buy and sell securities without their consent. This is only possible when clients sign and agree on the terms of a discretionary disclosure, a kind of contract that will support the broker’s rights to control and manage the client’s assets without consulting them on every transaction. They would, however, make every decision based on their client’s specific wealth objectives and risk tolerance level. This set up is ideal for busy executives who don’t have enough time to manage their portfolio or even for newbie investors whose knowledge in buying and selling is limited. While a  discretionary account  can be beneficial to these types of clients, it also has its downsides. Let’s take a look at them here: Pros Signing up for a discretionary account assures convenience and hassle-free investment management. Having a professi

REPOST: Why Private Equity Has $963 Billion in Dry Powder

Imahe
Investors are pouring money into private equity in hopes of solid yield. However, a large portion of that mountain of cash is yet to find its way to lucrative investment deals. More insights from this Bloomberg article: Investors give private equity managers their capital with the expectation that they’ll make it grow. But today these managers are sitting on a record $963.3 billion of dry powder, as they call money that they’ve raised but have yet to invest. The size of that pile, and the fact that it keeps rising, is making everyone antsy. A little dry powder is great if managers are holding out for better deals. But a lot can make for overly itchy trigger fingers, or can start to make investors wonder if there are cheaper ways to do nothing with cash. 1. Why is there so much uninvested cash? How much dry powder a firm has depends on both how much it’s raising and how much it’s investing. Right now, the first is up and the second is down. Investors are pouring money into pr