Pooled Funds

Institutional funds that do not qualify for the segregated minimums can invest in these portfolios.  This allows a wider range of clients access to Element Investment Managers' services.

The product range includes three asset class specific portfolios (Equity, Fixed Interest and Money Market) as well as a Balanced portfolio that are offered with domestic mandates.

There are a number of reasons why smaller pension funds can benefit from investing in a pooled fund structure:

  • Exposure to a diversified portfolio at a relatively low cost

A pooled fund enables the institutional client to obtain full exposure to a diversified portfolio of securities or assets without needing the full amount of capital that would be required to buy the portfolio economically in its own capacity.

  • Balanced or Specialist Mandates

The pooling mechanism gives the client additional flexibility with regard to investing their funds. Clients that would prefer Element Investment Managers to perform asset allocation functions on their behalf may invest in the Element Pooled Balanced Fund; while clients who make their own asset allocation decisions may invest directly in the appropriate specialist mandate for that asset class.

  • Alignment of Interests

Investments in Element Investment Managers Pooled Portfolios mirror those in our segregated mandates and unit trusts where the portfolio managers manage the bulk of their own money. As a result, there is complete goal alignment with our clients.

  • Ease of Administration

The client can account for the entire portfolio as a single asset for administrative and tax purposes. This greatly reduces the administrative burdens associated with the preparation of accounts and tax returns.

  • Lower Transaction Costs and Fairer Allocation of Trades

One of the problems an asset manager faces is allocating transactions between clients in a manner that is not only fair, but also cost effective. By managing our clients' assets through pooled portfolios, we are able to ensure fair allocation without impacting the economics of the transaction. As the size of the average transaction conducted in a pooled fund is larger, fixed transaction costs (such as safe custody charges) are allocated to a greater volume of units resulting in lower costs per unit for each transaction.

  • Better Utilisation of your Portfolio Manager

At Element Investment Managers we prefer to manage smaller retirement funds via our pooled products. In a pooling environment, the portfolio manager is able to focus on getting better value out of a few portfolios instead of micro-managing many individual portfolios. As a result, the portfolio manager is able to dedicate more time to research, which results in more new ideas flowing into the portfolios.

 
 

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