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Finance: What is a Commingled Fund? 7 Views

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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.

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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
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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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