Broker Funds

The basic concept of a broker fund is a Collective Investment Scheme established by a financial advisory firm. The financial advisory firm will then contract the management of this fund to a fund manager. The fund will charge an annual management fee to cover the costs of administration as well as the investment manager’s fees. The concept of broker funds can be a sound one; it allows firms to better diversify a client’s portfolio whilst being able to keep an eye on the underlying assets being used by the fund manager. Unfortunately, the concept is open to abuse by less scrupulous firms. In too many cases these funds charge a high annual management fee and advisors use them not to better diversify a portfolio, but simply to generate more fees from a client’s investment. Furthermore, it is not unknown for the investment manager to be selected not on track record or experience, but on price, again increasing the bottom line for the unscrupulous firm. Some fund managers simply select a series of other collective investments known as a Fund of Funds. This leaves unsuspecting investors paying not one, but two or more sets of additional charges and hidden commissions. Considering the issues common to broker funds in general, Belgravia Intervest Group follows a mirror system of funds that perform securely and at the same time provides excellent returns to the investors.