A custodian is a legal
entity that holds investments on behalf of investors. What does the custodian do? The custodian holds investments made through Aegis on behalf
of investors.
The custodian can group investors' funds to achieve substantial
buying power benefits they would not otherwise enjoy as individual
investors. The main benefit of this is the ability to access
wholesale managed funds with lower management fees and no entry
or exit fees. Using a custodian also enables investors access
to investment opportunities in Australia, the United States
and the United Kingdom that would otherwise be difficult to
access. What can the custodian not do? The custodian cannot incur any liabilities in its own name or
on behalf of investors. Nor can it hold investments beneficially
in its own name or in the name of anyone other than the investors.
As a bare trustee the custodian has no discretionary powers so
it cannot undertake investment transactions without instructions
from the investors.
