An Equity Segregated Portfolio Strategy is a relatively unknown concept, and new to most. Many investors are aware of, and are used to, investing in unit trusts. In brief, a unit trust is when a trust owns numerous shares, generally in public companies, and sells units to clients.
As most clients own units in a trust, they have exposure to the amount of units they own and the price of each unit. Clients prefer more transparency as they would like to see in which equities their funds are invested.
This is where the Equity Segregated Portfolio Strategy comes in, as it provides clients with transparency and management expertise. At Wealth Growth Investment Management we follow our investment philosophy and process in order to decide in which equities the equity segregated portfolio strategies should be invested.
Each one of these are portfolios that are invested in equities/bond/cash on the relevant Exchanges.
So how does it work? It’s quite simple: a client would choose the Equity Segregated Portfolio Strategy which suits them after which they would open a brokerage account with one of our pre-approved brokerage companies, with our assistance, and we will manage their funds in the same equities and very close to the same percentage holdings in which the Equity Segregated Portfolio Strategy is invested.
The advantage for our clients is that they can log in any time and see in which equities their funds are invested as they own the underlying equities as opposed to units in a trust. As we deal with reputable stock brokerage companies, these companies are members of the Exchange that they represent, which means that client’s funds sit in their own trust accounts on the relevant Exchanges.