Welcome to the world of exclusive Portfolio Management Services (PMS), a global financial domain often reserved for the ultra-rich seeking exceptional returns on their investments. In this article, we’ll explore the inner workings of the most sought-after PMS, a territory largely out of reach for retail investors.
The Context
In India, there’s a growing and evolving landscape of Portfolio Management Services (PMS). These are exclusive investment options designed for high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) who want personalized wealth management with a touch of elegance.
PMS schemes typically ask for a substantial amount to invest, ranging from about Rs.50 lakhs ($60,500) to Rs.1 crore ($1,20,000) in India. But hold on, if you think that’s a lot, you’re in for a treat!
In this special section of our website, where we explore the top 10 of everything in finance, we have an exciting list prepared for you. Brace yourself as we reveal the world’s top 10 most exclusive Private Money Management Schemes (PMS) – investments exclusively reserved for the Wealthy and Ultra Rich.
1. Tiger Global Management PMS
Taking the lead on this compilation is Tiger Global Management, an absolute standout among PMS schemes globally.
Tiger Global Management stands tall as a renowned investment firm, boasting a track record that primarily revolves around venture capital, private equity, and investments in the public market.
This scheme sets a high bar with its entry threshold at a substantial $10 million, catering exclusively to individuals with an ultra-high net worth. Impressively, over the last decade, this PMS has maintained an average annual return of 20%, an outstanding feat that positions it as a preferred choice for wealthy investors in pursuit of exceptional results.
Operating on a flat 2% management fee alongside a performance fee of 20% on profits, with the latter being subject to a significant high-water mark. Speaking of a high-water mark, this refers to the highest peak value that an investment fund or account has ever achieved.
2. Goldman Sachs PWM
Within the ocean of top-notch financial services, Goldman Sachs Private Wealth Management (PWM) stands as an undisputed leader.
This institution extends a variety of financial solutions and investment options to individuals and families with considerable wealth. Among their offerings lies the Portfolio Management Services (PMS), an offering that stands out for its personalized approach.
Customized to fit the unique goals and needs of every client, Goldman Sachs Private Wealth Management (PWM) creates a personalized investment plan. At its core, this PWM is all about skillfully handling a mix of different investments like stocks and bonds, aiming to help those investments grow while also protecting the money you already have.
Goldman Sachs, a name known for being exceptionally good with money, offers this special PMS to people who have at least $25 million. Run by experienced experts, their PMS has consistently made an impressive average return of 15% over the last ten years. This has attracted wealthy investors who want both safety and growth for their money.
It’s worth noting that this fund reportedly adopts a tiered fee structure. The management fee spans from 1.25% to 1.75%, while a performance fee of 20% applies to profits exceeding a predetermined threshold.
3. J.P. Morgan Private Bank PMS
J.P. Morgan Private Bank Portfolio Management Service (PMS) is all about helping rich people and families invest their money.
Professionals take care of the investments, making sure they fit the specific money goals, how much risk someone is okay with, and what they like.
To get this special service from J.P. Morgan, you need to have at least $50 million. They have done well over the last 10 years, making an average of 18% on the investments for their clients. That’s why a lot of super-rich people like this option.
J.P. Morgan’s PMS probably gives choices for investing money in different ways, like buying stocks, fixed-income investments, mutual funds, and other types of things you can invest in. The main aim is to make the money grow a lot over a long time, while also being careful not to lose too much.
From what we’ve found, this PMS charges a fee for managing the money. It’s between 1.5% and 2% of the money they’re taking care of. And if the investments make extra money beyond a certain point, they take a bonus fee of 15% on that extra money.
4. Bridgewater Associates All Weather Fund
The “All Weather Fund” is a special investment plan made by Bridgewater Associates, a big hedge fund company founded by Ray Dalio in 1975. They’re known for a smart way of investing using numbers and systems.
This All Weather Fund is designed to be a mix of investments that work well in different types of economies. It tries to give good results no matter if the economy is doing well, not so well, or even if it’s going through changes.
Investors who want to join this fund need to put in at least $100 million. It has done well over the last 10 years, making an average of 17% profit. That’s why big investors (HNIs) and very rich people (UHNIs) like it.
To be a part of this fund, you pay a regular fee of 1.5%. If the plan makes extra money over a certain amount, they take an extra fee of 20% on that extra money.
The way this plan works is based on something called “risk parity.” Instead of just dividing money between different things equally or based on their size, they divide it in a way that tries to balance how much risk each thing brings. This is done to make sure that even if some things are more unstable, the whole fund stays safe overall.
Usually, the All Weather Fund invests in a mix of things like stocks, bonds, things like gold, and other types of investments. The amounts they put in each type can change depending on what Bridgewater thinks about how the economy is doing. Their goal is to get profit by managing risk carefully and making the most out of how the market is changing.
5. Blackstone Alternative Asset PMS
This PMS from Blackstone Group is a top-notch investment option made just for wealthy investors with at least $200 million.
What makes this stand out is the amazing team leading it. These experts have lots of knowledge about money, markets, and strategies.
A exceptionally cool thing about Blackstone Group’s PMS is that it has consistently done very well. Over the last ten years, it has made around 21% on average. This shows that the strategies they use are smart and can give big profits even when the markets are changing.
What people like about Blackstone Group’s PMS is that they don’t just stick to the usual investments. They also put money into different kinds of things that are not so common. This helps reduce risks and grab chances to make money that others might not see.
To be part of this program, they charge a fee based on how much money you have invested. It starts at 1% and can go up to 1.5%. If the program makes extra money above a certain point, they take an extra fee of 20% on that extra money.
6. Morgan Stanley PMS
Morgan Stanley’s Investment Management also has a special Portfolio Management Services (PMS).
This is made for both rich individuals and big organizations. The main idea of PMS is to create a unique plan for investing money that fits what each wealthy client wants. This PMS is designed considering their goals, how much risk they’re okay with, and what they like.
The portfolio management services include different types of investments, like parts stocks, fixed-income investments, and other less common things. The goal is to make a custom plan that matches exactly what the client wants to achieve financially. They also look at how the market is doing and how safe or risky it is.
For investors to join this exclusive PMS, they need to put in at least $250 million. This plan has done well, making around 16% profit on average over the last ten years.
Just like many other similar plans, this one also charges a fee for managing the money. It’s 1.25% of the money they manage. And if the investments do better than expected, they also take an extra fee of 20% on those extra profits.
7. Vanguard IAS
Vanguard’s Institutional Advisory Services (IAS) is designed for big organizations like pension plans, nonprofits, and insurance companies. It helps them create personalized investment plans based on their goals and risk profile.
To get into IAS, organizations usually need to invest at least $500 million. On average, over ten years, this plan has made about 14% profit.
To be part of IAS, they charge a fee of 0.75% of the money they manage. They don’t take any extra fee based on how well the investments do. This makes it a good choice for large investors who want to save on costs.
If you’re an individual with a lot of money, you can’t directly use IAS. But you can use something called Vanguard Personal Advisor Services (PAS). This gives you a personal team to help with your finances, including things like retirement planning and taxes. If you have more than $5 million, you might even qualify for a premium service called Vanguard Flagship Select. Their portfolio management services offer extra benefits, like special advisors and access to advanced investment advice from IAS experts.
8. Soros Quantum Fund
Soros Fund Management, LLC is a private American investment firm. It started as a hedge fund and now operates like a family office, which is a business that handles a single family’s money.
A family office is in charge of managing a big family’s wealth all in one place. The company was created by George Soros in 1970. Back in 2010, it was said to be one of the most successful hedge funds, making about 20% profit every year for four decades.
People who wanted to join this fund needed at least $1 billion to invest. Over ten years, it made around 22% profit on average.
This fund charged a higher fee for managing money, which was 2.5%. On top of that, if the investments did well, they also took a bonus fee of 30%. This could mean big rewards in good years.
This fund became famous for its great history and a strategy called global macro. This means they made bets on different types of money, goods, and stocks based on big worldwide economic trends and events.
9. Renaissance Medallion Fund
The Medallion Fund is a special hedge fund managed by Renaissance Technologies, a company started by James Simons, a mathematician who used to crack codes. This portfolio management service is famous for being good and having a different way of investing.
They use advanced math and computer programs to trade different types of money, things like gold, and even other countries’ money. Their goal is to make money by taking advantage of small opportunities in the markets.
This fund doesn’t let just anyone join. You need an invitation, which means they pick who can invest, regardless of how much money you have. It’s rumored that this fund has made about 40% profit on average over the last ten years.
For the people they invite, they have a special arrangement for fees. This means they don’t charge the usual way. Instead, they have a different system that suits their extraordinary returns, but not everyone can get in.
The Medallion Fund is special because it has a history of making high profits. A big part of this is because it’s very secret and selective about who can join.
Because of its amazing returns and unique ways of investing, the Medallion Fund is considered one of the most successful hedge funds ever.
10. Kensington and Wellington Funds
Citadel is a big global financial company that handles investing and HNI portfolio management services. It was started by Ken Griffin, who’s a super-rich businessperson.
Among their activities, Citadel manages hedge funds called the Kensington and Wellington Funds. To join these, you need a whole lot of money, about $5 billion. Over the last ten years, these funds made around 24% profit on average.
The Kensington and Wellington Funds are part of Citadel’s hedge funds that use different strategies. They invest in lots of things like stocks, fixed-income investments, and more. Citadel is known for using smart computer programs to make trading decisions, which has made them good at what they do.
This fund has a competitive management fee of 1.2% and a performance fee of 18% on profits above a certain benchmark.
Conclusion
Exclusive Private Portfolio Management Services (PMS) offer super-wealthy people a unique advantage to invest their money and get personalized help to manage their wealth. Even though these special opportunities need a lot of money to start, their amazing profits over the past ten years make them attractive to rich investors who want their money to grow a lot and stay safe.
Investing for rich people is a very private thing, and a lot of the details are kept secret. We did our best to gather information from public sources, but the numbers mentioned here might change in the future. Also, some of these schemes might have extra rules besides needing a certain amount of money to join. This could mean only certain types of people or institutions can join, or you might need an invitation.
If you’re interested in joining any of these schemes as an investor, you should directly contact the company or group mentioned here.
Thanks for being curious and reading this article till the end!
Happy Investing!
