There are three main options for investment account management, each suited to different investors. This article will provide you with information to help you make an educated decision on which option suits you.
Option A: Self-Managed Account
Description: With this option, the investor fully manages and directs his investments independently
Who is this right for? Knowledgeable investor familiar with investing terms and concepts, who can educate himself (via the Wise Money Israel website and resources) on the Israeli capital market. Able to research and make informed financial and investment decisions using an online trading platform independently.
Option B: Consultant-Supported Account
Description: With this option, the investor manages his investments with the support of a consultant
Who is this right for? Individuals with little or no knowledge on investing in the Israeli capital market who would like to be educated and supported by a consultant who will help them through the stages of sound investment. This option is also good for the experienced investor who prefers to have a consultant research and present Israeli investment options.
The consultant will:
- Educate the client on the Israeli capital market, including possible investment vehicles,market trends, current bond yields and preferred stock sectors
- Assist with the development of your investment strategy, taking into account the client risk tolerances and suitable asset-class allocation
- Research potential securities and companies based on your preferences and performance expectations, providing historical performance data and expected bond yields
- Provide investment execution orders, including the calculated number of bond/stock shares per security, the relevant security numbers and help formulate which type of purchase order to place (limit order, fill-or-kill etc.)
- Keep client informed on current market and economic forces and trends to help the client protect their investments
- Train the client in the usage of the bank or brokerage online trading platform if desired
- Help client track performance of their securities against market benchmarks to facilitate client’s decisions on re-balancing their portfolio as market conditions change
- Assist and communicate with the brokerage to verify the correct execution of transactions, statements, interest and dividend payments, taxation and to resolve any trading platform issues
Fees: see Consulting Services
Option C: Managed Account
Description: With this option, the account is actively managed by a portfolio manager (for accounts of $100,000 or more)
Who is this right for? Individuals who prefers to have their Israeli investments managed for them
The portfolio manager will provide:
- Financial planning: data gathering, goal setting, plan development, implementation and review
- Risk management
- Investment and hedging strategies
- Asset allocation
- Active portfolio management to maximize your returns
- Transaction execution
Fees: Contact us for details.
