Trust management (private trader)

I decided to write a small FAQ for investors who decided to invest in trust management to the private trader ie. I. For more details you can learn contacting me.

Trade is now conducted only on the US stock market(NYSE, NASDAQ, AMEX) shares and ETF within the day, no transfer of positions the next day.

The recommended amount: from 30 000$ (at least 10 000$)

Who opens the account: just for the investor. Add/withdraw funds you can only

Broker: recommend Interactive Brokers LLC for accounts more 30000$ (individually of the amount)

Duration: from 6 months

Withdrawal: individually(no more 1 times a month)

Yield: on average 3-10% per month (depends on the amount, shoulder broker, market conditions etc)

Risks: 5-10% the maximum total risk for the entire Deposit(but not less than 3 000$)

The distribution of profits: 50% on 50% (individually)

Signed a contract with the investor.

Contacts :
Skype: nysetrade

Telegram: @Good_trades

Mail: [email protected]

Trust management

Trust management (Do) service, provided to managers of companies or banks in the securities market.

In trust management the client under the agreement transfers management of company funds or other assets. That carries out transactions in its own name, but in the interests of the client, for which he receives remuneration as part of earned income or as a percentage of the value of assets, under the management. Trustees in most cases, can not guarantee profitability, which depends on economic conditions.

By itself, the trust management means, what are we passing on their assets to the disposal, but without transferring to him the rights of ownership. This implies, what assets will be working professionals, qualified and time for transactions with assets with a view to profit for the client trust management.

Assets, which can be transferred to trust management, might be completely different. It can be real estate, cash, securities, as well as various tangible and intangible assets. In General, the process of trust management is governed by Chapter 53 GK OF THE RUSSIAN FEDERATION.

Individual trust management

In this case, the control means of the investor occurs at the personal level. In the case of the present trust management with the client is the contract of individual trust management, which is regulated by the civil code of the Russian Federation. As an Annex to the contract developed a personal investment policy statement, which reflects the basic investment options (a little further on we will specify what). Contract and personal investment policy statement serves as a protection against unauthorized actions of the Manager. From the point of view of legislative regulation of restrictions on the actions of the Manager are almost there. And unlike mutual Funds, there is theoretically realizable with any investment strategy, that is, any assets, ranging from derivatives market, ending foreign exchanges. Also, any possible strategy, ranging from the classic passive investment to speculative strategies with robots, algorithms etc. The conditions on the amounts of investment terms and potential risks here are already being discussed individually.

Just as important, what management may not guarantee at least some yield, if this is done, it can be equated to a violation of the law. Only here you can talk about the degree of probability of expected return. As profitability and risk is always proportional to, it is on conservative strategies, the probability of obtaining the expected return is much higher than aggressive.

Consulting asset management

Management consulting is not a true trust management, as in this case, the right to dispose of the assets or funds not transferred to the Manager, and all transactions take place on behalf and on behalf of the client. The investor only the right to listen or not Council more experienced market participant.

In the case of brokerage and consulting management, this service, which is created by the brokers themselves and (in our personal opinion and suspicion) often in conflict with the interests of customers, as frequent change of invest-ideas encourages a client to execute more transactions, and ultimately to pay higher brokerage Commission (cm. an article entitled "why brokers do not like investors").

Who manages the assets

In this case the client is a contract management consulting, which is prescribed, all transactions take place on behalf and on behalf of the client and the responsibility lies entirely on it.

Who can borrow money in the management of

The first is to say about that, who has the right to engage in a formal trust management in the securities market. Trust management can only be performed by the organization, which have a specialized license for realization of activity on management of securities. Such organizations are called management companies. And directly the staff of these management companies must have a special FFMS, certifying the employee's right to engage in the management of securities and funds. Only in this case, this is a process legislatively regulated and official trust management.

This provision is regulated by article 5 “Activity on management of securities” FZ “On the securities market”.

The types of trust management

Currently, the term "trust management" has largely received a free interpretation. As it happens, under trust management refers to various forms of Advisory and analytical services.

So, let's look at what today's laziness are the main forms of asset management and what are the mechanisms of their work. It is possible to allocate 3 the main forms of asset management:

  1. Collective trust management.

  2. Individual trust management (the classical trust management).

  3. Advisory trust management.

How does collective trust management

The main feature is that, that investors ' funds are combined into large pools and a pool Manager manages all the entire, and the shareholders own only a part of this pool (the Pai) and receive a proportionate income. In other words, we can say, what is the retail form of trust management is available for small customers.


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