What is Portfolio Management?
Anyone that invests in more than one company or investment asset has a portfolio of investments to manage. With global markets opening up and alternative finance platforms such as P2P (Peer to Peer) or Equity Crowdfunding platforms we are seeing a variety of new investments in private companies becoming available to non-accredited investors (non high net worth investors) and accredited investors. Portfolio management isn’t just for the financially savvy accredited investor types, but rather for anyone who invests their money in hopes of making a future return.
For those rainy days, you want to make sure your investments are all kept in check. A portfolio is a collection of these investments . Your portfolio might include investments in shares (including options and warrants), bonds, loans (including convertible debentures, promissory notes), assets, mutual funds and cash.
Portfolio management is not just about managing the amount and types of investments, but it should also provide you the documents, reporting, schedule of shareholder meetings, news and updates from the companies you have invested in. Typically most investors do this in one of two ways: by hiring a portfolio manager who will then charge fees based on the total investment; or the investor manages their own investments using word, excel, and some form of document storage.
There are numerous benefits to working with a portfolio manager. Fiduciary responsibility often tops that list. These managers have a fiduciary duty to act with care and good faith, always keeping in mind the best interest of their clients. However, the vast majority of people don’t use a portfolio manager because they are not economical, they don’t deal with private company investments, or the investor prefers to manage their own investments. The Alternative Finance sector is evidence that more and more people investing in private companies and this type of investment is something that is not normally managed by the traditional portfolio managers.
Until recently, investors have lacked useful tools to manage and track their investments, forcing them to use Excel and filing cabinets. As you can imagine, this is hard to track and manage manually.
A whole new do-it-yourself mentality has people looking for new ways of doing things. With advances in Fintech, Alternative Finance, Crowdfunding, etc. you are seeing more and more pressure to develop efficient online solutions. There are many great advances and new technology solutions being created to assist people in tracking and managing information, and the Portfolio management sector is no different.
Managing your assets can be complicated. This is why we at KoreConX developed our all-in-one business platform with the investor in mind. Recognizing that there are not any good tools for investors to use to effectively manage their private investments, coupled with the new do-it-yourself mentality, we developed a simple to use and FREE Portfolio Management platform. With the KoreConX platform you can manage your investments in private companies whether they are shares, debentures, options, warrants, promissory notes, SAFE’s or Crowd Safe’s as well as all the documents, reporting, voting, news releases and company annual meetings associated with those investments. Through KoreConX you always stay connected to the company you invested in and always have access to your investment documents.
Jason Futko is co-founder and chief financial officer for KoreConX. Prior to KoreConX, Futko co-founded Crowdfunding Alliance of Canada. In addition he was managing director of an Exempt Market Dealer and Chairman of a public investment vehicle in the United Kingdom. Jason has vast experience in financing businesses globally. He has extensive knowledge of international know your client (KYC) and anti-money laundering (AML) regulations.