Dedicated Managed Account

Dedicated Managed Account 2018-10-11T14:43:55+00:00

Dedicated Managed Accounts (DMAs) are created to provide asset owners and large allocators with an improved investing experience. These dedicated structures provide the investor with increased transparency, robust reporting, and greater control and oversight, while reducing the cost of the underlying investments.

Enhancement of a traditional managed account structure

For institutional investors – in particular, pensions, endowments, and family offices – using  managed accounts to invest in non-traditional strategies is unquestionably the most efficient solution. However, since this structure for investing presents significant operational and administrative burdens, it is prohibitively expensive and impractical for most asset owners to build and maintain the internal operational control environment, staff, technology, data infrastructure, and legal expertise necessary to effectively administer and manage a portfolio of managed accounts. This is where Gemini can partner with your organization to unlock the significant benefits managed accounts offer.

Gemini offers an innovative solution for today’s institutional investor. Our DMA structure provides you the exact controls, services, and reporting needed to manage your investment choices. The DMA structure provides granular details and features that support your decisions, including:

  • Position-level transparency

  • Continual risk management and monitoring including VaR, stress testing, and scenario analysis

  • Data aggregation and custom reporting

  • Guideline monitoring on predetermined requirements, including markets traded

  • Portfolio rebalancing and cash monitoring

  • Performance reporting and trading activity

  • Daily liquidity

Additionally, we will support your customized DMA through:

  • Extensive due diligence on trading advisors and counterparties

  • Legal structuring of an appropriate investment vehicle

  • Account set-up with futures commission merchants (FCMs), prime brokers (PBs), and custodians

  • Cash efficiency

Gemini’s open architecture DMA structure allows you to select your preferred trading advisors, custodians, clearing firms, and other service providers. You have the ability to negotiate fees with your advisors and maintain strong governance, while utilizing our comprehensive risk and guideline monitoring tools.

Dedicated Managed Account Structure

DMA flow chart

Contact us to learn how Gemini’s Dedicated Managed Account structures can create transparency, liquidity, and control of your investments.

2073-NLD-5/30/2018

What is a Dedicated Managed Account?

A DMA is a hedge fund that is owned and controlled by a single institutional investor, such as a pension fund or endowment. Since the investor typically selects the DMA’s preferred trading advisors, custodian, clearing firm, and other service providers, this type of account structure provides the investor an extra level of control, transparency, reporting, customization, and cost efficiency. A DMA also removes co-investor risk since the investor owns the account.

How Gemini Clients Are Achieving Structural Alpha

Gemini’s DMA structure recently allowed a large public client to save in excess of 100 basis points annually in asset management fees and operating expenses.

Learn more.

Want More?

Read about the benefits of managed accounts for institutional investors.

White paper: Evolution of Institutional Investing into Alternatives

Listen to a Webinar

Managed accounts may provide:

  • Access to managers at lower minimums than through a direct relationship
  • Better liquidity terms than is typical of a direct relationship
  • Full transparency (trade-level data)
  • Third-party guideline monitoring
  • Convenience – electronic subscription, ease of allocation changes, single K-1, and single sub-doc

Hedge fund industry professionals discuss: Listen to the webinar recording

Watch a Panel Discussion

  • How can managed accounts be assimilated into a portfolio and what are the benefits to investors and managers?
  • What type of investors are best suited for these structures?
  • What are common misconceptions? What is the future of managed accounts?

In a Gemini-hosted event, industry experts weighed in on these topics, as well as why it’s critically important for institutions to choose the right investment structure: Watch the video recording