Trust Management
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Trust Management

Trust management is a service provided by managing investment organizations, as well as brokers and banks directly on the international currency and stock markets.

In the framework of trust management, the client transfers funds or other assets to the fund, broker or bank on a contract basis. These institutions in turn carry out operations in the currency or stock market on their behalf, but in the interests of the client for whom they receive a reward in the form of part of the earned profit or as a percentage of the value of assets under management.

In order for an investment company or a bank to provide trust management services on the securities market, they must have a special license obtained based on the legislation of the country in which they operate.

Trust management services are usually provided to customers individually, for personal requests and investment purposes. Therefore, investing funds through such a contract is more expensive than buying shares or assets of investment funds.

The results of trust management are most dependent on the professionalism of those employees who implement it. Therefore, when concluding an agreement, it is necessary to be interested in the results of the work of a particular specialist who will be entrusted with making transactions.

Trustees in most cases can not guarantee profitability, which depends on the economic conjuncture. If this is done, then the investor should seriously consider the reliability of the company: does it have enough funds to fulfill its obligations to all customers in the event of an unfavorable situation in unpredictable markets.

As a rule, the asset management contract prescribes a class of instruments in which funds are supposed to be invested. Thus, the client can determine the risk and return ratio acceptable for the portfolio.

Asset management is offered by most major investment companies, as well as banks within the framework of exclusive private banking services. The average cost of the service is about 15% of the profit.
Individual investment solutions for customers with free investment capital from 500 thousand rubles

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In order for an investment company or a bank to provide trust management services on the securities market, they must have a special license obtained based on the legislation of the country in which they operate.

 

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