Segregated fund

In the UK a segregated fund, or seg fund, is a managed pot of assets belonging to just one client, managed alongside – but separately from – other investments under the control of a particular manager.

Seg funds are usually over £100m in value – smaller ones may not justify the high fees. In a way, they are a bit like a private client fund (just a lot bigger), as the client defines the agenda they want the fund to follow, choosing the risk parameters, limiting stock or sector bets, putting in ethical constraints, or even currency hedging.

They can have various legal structures, so can be managed for any type of institution from a pension fund to a charity.

Merryn

Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.