Madison Asset also offers asset management services to institutions that have adequate liquid investments but are unable to manage these investments on a day to day basis.
Usually, such clients appoint a custodian who holds the assets on their behalf and then appoint Madison Asset as the fund manager to oversee the day to day management of the investments.
Monthly Consultation with the client
Monthly statement from the custodian
Custodial account can be used for other investments
1. Safety of investments
Because the investments are held by a custody bank on behalf of the investor, they are safe and cannot be misused. Further and unlike individuals, when doing investments like purchase of quoted stocks, the custodian will only pay the broker when they have received the stocks – this reduces the chance that money can be lost in the settlement process.
2. The fund manager can put your eggs in different baskets
Although the investors funds are managed separately, the fund manager will be managing other similar funds and can pool all these funds together creating a big enough fund that can be spread to many investments and, therefore, reduce risk.
3. The fund manager has better bargaining power when carrying out investments
The fund manager can bargain for better returns on investment. For example, commissions paid to stockbrokers are discounted while money invested in fixed deposits attracts better return.