Assets
Discretionary Funds
What are “Discretionary Funds”?
Unlike traditional funds, Discretionary Funds are raised without a stated investment goal. The funds raised from investors are invested once profitable opportunities are secured.
The deal sourcing capability of the asset management company is the most critical factor in a successful Discretionary Funds,
because the specific investment target cannot be known in advance.
Traditional
funds
- 01Set investment
target - 02Launch fund
- 03Raise funds
Discretionary
Funds
- 01Launch fund
- 02Raise funds
- 03Set investment
target
Advantages
-
- Fast
- Since investment targets are not defined before raising funds, the asset manager has the discretion to make immediate decisions on where and
how to invest the funds.
-
- Profitable
- Speedy decision making enables investment in blue-chip assets before anyone else, leading to higher profits compared to traditional project funds.
-
- Stable
- A single discretionary funds can cover multiple assets in its portfolio, reducing risks and ensuring stable gains.
Discretionary
Funds
-
Fund-raising type
- Public Offering fund
- Private fund
-
Investment type
- Equity fund
- Debt fund
-
Risk Profile Type
- Core
- Core+
- Value-added
- Opportunistic
-
Sector Type
- Office
- Logistics
- Retail