Hungarian funds
Institutional portfolios
The concept of asset management
Asset management as all contractual relations is based on trust and mutual co-operation of the parties. According to our company philosophy, the most important step is to explore the expectations of the mandator. Before laying down the investment policy, the professionals and analysts of the Asset Management Group map the specialties of the liquidity and economics of the mandator, and then they describe the expectations of the mandator together.
Creating an investment policy
The guarantee system of the safety of the investment
The purchased securities are transferred to the deposit account run by the custodian company. The custodian takes care of the guarding of the securities. The mandator receives a report of the status of his/her assets in every second week. These reports are completed by the yearly statement and an economical analysis. The individual instruments stay in the mandator's ownership, and are registered in his/her books. The fee of the asset manager varies case by case. It depends on the size of the property, the characteristics of the instruments and the length of the period of the contract.
Distinct investment philosophies of the different type of mandators
The institutional asset management is the playground of the classical asset management co-operation. In our practice, we have been in contact with most types of organizations:
- Municipalities
- Economic association
- Foundations, societies
- State budget organizations
Due to the savings and investment preferences that come from the diverse economic background, one finds really significant differences between the different institutional mandators performance, risk and liquidity expectations. Our up-to-date and flexible registration system is all the time able to handle relatively big and unexpected capital inflows and outflows. Hence, we are always able to completely fulfill the unique expectations of our mandators. In case of foundations and societies serving public purposes, generally we propose quite high government security ratio. Due to the superior need of long term capital saving, we prefer to recommend emphasizing longer durations. The calculable size cash outflow needs that are created by the investment projects of economic associations and the financing needs of municipalities that occur irregularly can be well served by employing treasury bills and money market instruments.
Cost advantages of asset management
Based on our knowledge that we acquired in this colorful market, we can bravely state that the asset management philosophy and routine of Pioneer Fund Management Ltd. can be a great tool in the hand of financial managers, and it can free them from the costs of operating a treasury department and the costs of the continuous market watch (the monthly fee of a single Reuters terminal is more than HUF 100.000).
Global coverage - local attention
Within the frame of the asset management contract not only the domestic money and capital market instruments are accessible for our partners, but the access to the global capital market is a part of the everyday business operation. Within that we offer government bonds and AAA rated corporate bonds traded in the markets of the USA, Western-Europe and Central-Europe, stocks that are listed on the leading burses and other instruments when we work out the investment policy. It is also possible to form a targeted portfolio that focuses on a certain region and/or a certain asset class (e.g. only US stocks or EURO government bonds). Our asset management professionals are all the time reachable through telephone for in-depth information regarding market analysis, financial technicalities for our partners. Either by e-mail or in person, these services are crucial part of the asset management process.
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