CapitalatWork

Why are Funds the best invention in Asset Management

• Portfolio Diversification Benefits
  Regrouping the assets of many clients allows every client to have a well diversified portfolio. As exposed on another part of our website (perspectives), diversification can be said to be the only free lunch available in financial markets.
• Lower Cost Base
  While this is certainly not true for the whole fund industry, at CapitalatWork we can easily claim that the extensive use of funds has lowered the cost for the discretionary asset management of our clients’ portfolios. First of all, the management fees we charge are very competitive in an industry that has made a bad habit of overcharging for its services. Secondly, our entrance and exit fees are low compared to industry standards. Finally, and maybe most importantly, the transaction costs in our funds when we buy or sell securities are executed at cost. Not only do we use platforms that allow us to execute those trades at the best prices, but this is also the cost that is charged to the fund, without a mark-up from CapitalatWork.
• Consistent Investment Policy
  Funds have a prospectus that needs to be approved by the regulatory authorities. In the prospectus the client can find a chapter on investment policy. The application of this investment policy is under continuous supervision from the regulatory authorities and auditors. It is important for a client to know that the building blocks of his portfolio cannot change the risk profile and the investment policy overnight .
• Acces to Institutional Products
  Some products are only available for large amounts. The recent explosion of the derivatives markets and the emergence of new countries on the investment scene make it very complicated for individually managed portfolios to have access to the full range of investment possibilities. For example, the paperwork that is necessary to be able to buy Brazilian bonds or Turkish stocks is time consuming and often just not available for individuals. Also, the use of derivatives, often helpful to hedge investment risks, are not easily available for individually managed accounts
• Transparency
  According to the prospectus of the fund, a daily, weekly or biweekly NAV (net asset value) of the fund is calculated. This means that all the assets in the fund are marked to market, which means that the most recent traded price is used to calculate the value of the fund. These daily quotations (for the Capital at Work funds) are outsourced to an independent third party, who marks to market all our holdings to make the correct calculations for the NAV’s of our funds. Monthly fact sheets, with all relevant information, are available via our website.
• Auditing and Supervisory
  Funds have to be approved by the regulatory bodies of each country before they can be distributed. The goal is to offer a much needed protection to the smaller investor in particular, and to every investor in general. Besides a strict control from the aforementioned authorities, every fund has an auditor due to its legal structure.  In the case of capital at work, we have chosen to outsource also the administering of our funds.