As an investment adviser with a pension, endowment, or family office, you are likely under pressure from your board to maintain very specific performance numbers so you can meet the requirements of the organization and participants. The board may also be demanding increased investment transparency, better control over investments with the ability to move quickly in and out of positions, and reduction in fees in order to improve overall returns.
A Dedicated Managed Account (DMA) is a beneficial solution for your organization, as it allows you to deploy your complex investment strategies and meet all of these obligations in an operationally efficient way. Through one comprehensive technology and service package, a DMA provides you with the controls and reporting required to manage your investments in a cost-efficient and scalable way.
Through a DMA, your organization is the sole investor, so you have full ownership and control over the account. You select preferred trading advisers, custodians, clearing houses, and other service providers, and your account and each underlying fund are linked together only through an Investment Management Agreement. The structure gives you the flexibility to negotiate strategy customization, investment guidelines, and management and performance fees with each underlying fund manager, which can result in a significant reduction in investing costs. Overall, the DMA provides the exact controls, services, and granular reporting you need to make more informed investment decisions.