About Managed Accounts

  • What is an Executing Broker?

    An Executing Broker is a firm that acts as a medium for buyers and sellers, earning a commission or fee on all dealings.
  • What is liquidity?

    This is basically the extent to which something can be converted into cash. Highly liquid assets are those that can easily be converted into cash equivalents with little change to the value of the asset. Illiquid assets are the opposite, and can include things like property and collectibles depending on the market and market assumptions.
  • What is a derivative?

    In short, a derivative is an arrangement or product (such as a future, option, CFD, or warrant) whose value derives from and is dependent on the value of an underlying asset, such as a commodity, currency, or security.
  • What is the difference between the equity and the balance?

    Equity = sum of all open positions (negative and positive) during an open period. This will constantly change throughout the period and gives live update to what the account stands at.

    Balance = is the figure after the trades are closed for the investment period. This only changes whenever there is a deposit, withdrawal, or a position being closed.

    These two terms and figures are often mixed up. The difference is that the balance will not include any un-finalised transactions (e.g. open positions). For instance, the balance may show $25000 but because there’s a couple of $100 positions that are currently sitting in the positive and not being closed off, the equity is sitting at 25200 (25000+2*100). 

  • What is a managed account

    A managed account is a service where a brokerage or trading account is maintained for investments purposes and the client provides discretion to an investment manager to make investment decisions on their behalf.

  • What is the difference between a managed account and a managed fund?

    The main difference is that funds are pooled from all client investments whereas accounts, such as we offer, are separately managed for each individual client. This means that clients aren’t hinged on the overall amount of clients or client funds that are held under the investment manager.

    The other differences will derive from the main difference and will dictate how each type is affected by tax, what fees are involved and how the investments are carried out. For example, funds or other pooled investments will mean that clients could generally inherit taxes that aren’t purely relevant to their investments but with managed accounts, the taxes are directly from investments in that account and it is the client’s responsibility to seek tax advice and report to the ATO.
  • What is the difference between SMA and IMA

    A SMA or separately managed account is a type of managed account where a portfolio of investments is beneficially owned by the client but is managed controlled by an MDA investment manager. The client effectively owns a multiple of a model portfolio and any investment decisions made by the MDA investment manager do not take the clients individual needs into consideration.
    An IMA or individually managed account differs from an SMA in that the client’s personal needs and circumstances are taken into consideration and all trading is tailored to the clients individual requirements.

  • What is an alternative investment?

    Alternative investments are generally considered to be assets that are not one of the more conventional or well-known investment types, such as equities, bonds, property or cash. ‘Alternatives’ can include a wide array of investments however; some of the better-known alternatives are foreign exchange and commodities.

  • Investment Universe

    In the world of investment management, the words investment universe refers to a specific group of assets which are permitted in a specific investment strategy. An investment universe might be the stocks that are included in a particular strategy, for example in the case of Edulis & Utilis this is ASX listed EFTs. Some others include:

    • Margin FX
    • Exchange traded funds
    • Gold CFD
  • About Margin FX

    Foreign exchange trading is when you attempt to generate a profit by speculating on the value of one currency compared to another. Foreign currencies can be traded because the value of a currency will fluctuate, or have its exchange rate value will change, when compared to other currencies.

    FX trading is normally conducted through 'margin trading', also known as Margin FX, where a small collateral deposit worth a percentage of a total trade's value, is required to trade.
  • About Exchange traded funds

    ETFs are a type of open ended managed fund which is traded on a financial exchange. Like all managed funds, investors’ contributions are pooled so they can be managed as a fund, in line with an investment strategy, and investors hold an interest in the pool. In Australia, this interest is usually in the form of a unit in a unit trust and the ETFs are managed investment schemes.

    The strategies we have that go into ETFs focus on Australian equity and fixed income, as well as international equity and fixed income.

    The ETFs do have their own management fee that is separate to our management fee. Please refer to our investment fees page. HERE

  • About Gold CFDs

    In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.

    At Aleda Capital, we use a Spot Gold CFD to give you exposure to the Gold Market. Our strategy involves both short and long positions
  • What you should consider

    • When making investment decisions you need to consider what it is you are hoping to achieve with your investment. Every individual’s needs are different and your investment choices should reflect your personal circumstances.
    • Your individual financial situation, investment goals, risk preferences, investment timeframe and individual needs are just some of the things you should consider before investing in any financial product.
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Our investment managers are highly experienced in trading across the ASX, foreign exchange and gold markets. They actively manage client investments ensuring they can achieve the maximum growth within your portfolio. If you would like to invest with Aleda Capital you can begin through our online platform now.

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