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Mutual Funds Videos 165 videos

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Finance: What is a Commingled Fund? 7 Views


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Description:

What is a Commingled Fund? Commingled funds are similar to mutual funds but contain different assets and possible asset classes. They are blended together under a single umbrella to realize greater economies of scale and to reduce management redundancies. They are mostly used by institutional retirement plans and are not publicly listed for individual investors.

Language:
English Language

Transcript

00:00

Finance allah shmoop What is a co mingled fund What

00:07

is it Well it's A bunch of assets which used

00:10

to be single having come to the finance party stag

00:14

now being put together in one large tinder financial group

00:18

Well for that finance party the host had to make

00:20

the requisite ice sculpture Of course if that sculpture was

00:24

done to entertain on ly one set of assets well

00:27

it's relative cost was probably aye But if it covered

00:30

one hundred different accounts all invited to the party to

00:34

ogallala the great evolved wonder Well then the cost of

00:38

that ice sculpture per visitor is a sum one hundredth

00:42

of what it would have been Otherwise we'll co mingled

00:45

Funds exist typically when a family is successful and disparate

00:49

or separated they don't really talk to each other a

00:52

whole lot Joe over here made his money from a

00:55

shoe factory He sold brother bob over here Made his

00:59

money from his special head shine serum And sister suzy

01:04

over here made her money from her plastic surgery clinic

01:08

Or uh or what That was but well here's The

01:10

breakdown By combining their assets they sort of become a

01:14

kind of hybrid mutual funds like a family mutual fund

01:18

only they don't have to suffer all the regulatory filings

01:21

of being a mutual fund that hire their own professional

01:25

manager to run the co mingled assets think retired money

01:28

manager or someone in the broker dealer world who pretends

01:32

they know what they espouse or market or you know

01:35

they're shizzle in co mingled funds the family khun draw

01:38

margin against those funds like borrow against their own money

01:42

for really cheap prices Sigan sell stocks short which you

01:45

can't do in a mutual fund I'ii betting they'll go

01:47

down just like margin you can do in a mutual

01:50

fund and they could buy and sell stock options and

01:52

bond options in their funds and a bunch of other

01:55

freedoms they have Well that just buying a vanilla mutual

01:58

fund would not have given them so Wow with all

02:01

that freedom what can't co mingled funds d'oh Well sure

02:04

won't protect you from frostbite if that ice sculpture you

02:07

too thirsty just a heads up co mingled funds they're 00:02:11.57 --> [endTime] fun home

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