The agreement on the trust necessarily includes a clause on the amount of the bonus for the counterparty performing the management. The funds for the remuneration are taken from the profit that the property under its management brings. In addition, the profit is spent on all current costs associated with the management.
In any case, as soon as the contract is concluded, all power over the property passes to the manager. Therefore, it is so important that this is a reliable investor who inspires confidence and has proven his professionalism.
5 tips for choosing a management company
If you trust the manager, sign south korea email list the agreement. From that moment on, you will have very limited control over his actions, and he will have wide opportunities to earn income at the expense of the principal's assets.
5 tips for choosing a management company
Comparative analysis of offers from different companies
Visit the offices of management companies, talk to managers, ask about their annual profitability under trust management. Study the statistics of companies for the last few years, pay special attention to the profitability of trust management. It is reckless to make a choice based on this indicator alone, but it cannot be ignored either.
Assessment of the quality of analytical services
The way a company conducts analytics can be used to judge the level of its work as a whole (which includes the security of assets given for trust management). Analytical departments of trust funds, brokerage firms and other companies offering trust management services carefully monitor the market situation and everything that affects it: major company news, events in foreign and domestic policy, economics, exchange rates, forecasts. Only with up-to-date data can a company make quality decisions on property management and do so on time, which will ensure a stable income for the investor and protect his interests.
Assessment of the management company on several aspects
Take into account all significant factors: the total amount of assets that the company currently has the right to trust management; the information content of the website (is it updated, does it contain analytics, forecasts, advice on certain positions); the availability of a license to provide trust management services.
Assessment of the reliability of the management company
The reliability of management companies is assessed by the NRA (National Rating Agency). Every year it publishes its own rating of companies. The evaluation criteria are numerous. The better a company is able to fulfill its obligations (contractual and financial), the more reliable it is and the fewer risks its clients face. A low rating of a management company in the NRA is a strong argument against working with it.
The NRA lowers the rating of those companies that have provided false information about themselves, since this can be classified as fraud, and they end up at the bottom of the rating.
Studying customer reviews about the management company
Even if you have chosen a company with a very high reliability rating, ask about reviews from other clients. Global ratings do not take into account many important details that people write about in their comments. Trust management is not only a chance to make a huge profit, but also a risk of losing all invested capital or property. The risk is directly proportional to the possible gain. Therefore, always read reviews from real people.
And, of course, read the trust agreement as carefully as possible. It doesn’t matter whether you are transferring trust management of your shares, real estate or money to the company and what the total value of your asset is – the agreement must be read carefully in any case. Pay attention to the following points: the ability to withdraw funds before the agreement expires; disclosure of all terms present in the document.
These simple recommendations will help you choose a qualified manager who can both preserve and increase your assets. Any questions that arise should be asked before signing the contract. Be sure to clarify all unclear points and try to study the specifics of the company's activities in detail.