Margin— Managed (Discretionary Account)
It’s a fully Portfolio Manager’s Discretionary Investment Management Service. Portfolio Manager will act on behalf of the investors and will be authorized to exercise his discretion to make best professional investment decision having no guarantee for return on such investment. Profit and loss will be borne by the investors exclusively. Under this scheme, the goal of the portfolio manager—regardless of whether the portfolio is composed of — should always be to create an "efficient" portfolio by using his best knowledge and skill, i.e. a portfolio that has minimum risk for a given level of expected return.
Eligibility to open the Account
Any Bangladeshi over 18 years of age is eligible to open an account under Prime Invest program. Every two persons can open maximum of three Managed Accounts — two in their individual name and the other in joint name.
- Any Client may choose to open an Account with the portfolio manager.
- Client has to sign an Agreement with the portfolio manager. The portfolio manager shall carryout operation as per the agreement.
- The client shall have the option to avail margin loan under "Margin Loan Policy" of the Bank.
- The Portfolio will be build up through purchase of securities from the primary market i.e. Pre-IPO/IPO as well as from the secondary market through the Stock Exchanges.
- Portfolio Manager will manage portfolio on best effort basis.
- Portfolio Manager does not ensure return/equal return for all clients.
- Portfolio manager will provide portfolio management service according to clients’ need and based on their expected return, risk tolerance and investment objective.
- Portfolio manager will maintain clients’ funds and securities through an omnibus account.
- Portfolio manager shall maintain records of all individual clients separately.
- Portfolio manager will ensure all corporate entitlements of the clients and timely collection of the same.
- The portfolio manager is entitled to recover various charges and fees from the Investor as agreed by both parties including brokerage on buy and sale value of securities, necessary stamp duty and other expenses for transfer of securities, portfolio fees and other relevant charges as shown in the financial account of the Investor.
- Portfolio manager will maintain complete secrecy about investors’ portfolio.