
P1: OTA/XYZ P2: ABC
JWBT468-c03 JWBT468-Burghardt March 8, 2011 21:35 Printer Name: Courier Westford
Structuring Your Investment 63
Managed accounts can be set up several different ways to meet different
portfolio policy requirements. Exhibit 3.5 shows some of the more common
structures that we have seen in the market.
In many managed-account situations, the investor starts by setting up a
special-purpose vehicle (SPV) or other holding entity to fence off any trading
liabilities from the rest of the money that the investor controls. It is not
a necessary step, however, as there are other ways to manage the potential
liability. We’re not offering legal ...