Account Aggregation

  

Scale. That's what this one's about. Separate accounts get linked...and the bigger dollar size of these investment portfolios allows for cheaper, fixed-cost-servicing to happen across the bigger base.

Related or Semi-related Video

Finance: What is an Omnibus Account?110 Views

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Finance a la shmoop. What is an omnibus account?

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Herbi just eats leaves, Carni just eats meat, Omni well it's pretty much [Different buses eating stuff]

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everything. So yeah an omnibus as in bus-i-ness or business account services is

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a bunch of investors who've all pitched in or wired in their capital to become a

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percentage owner of that omnibus account. Why would people do this? Scale, volume,

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discounts size, heft. When you have a lot of money in an account basic things like [Lots of money in a suitcase]

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audit and legal fees and brokerage services and the fees with them and

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other one-off costs get amortized across a lot of people in dollars invested [Definition of Amortization]

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rather than being laid entirely or solely on one investor where they can

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then be a meaningful percentage of the total and with an omnibus account you [Bus labelled Omni eating leaves]

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also get anonymity since it's a broker dealing in street name with the account [Anonymity stamp]

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interfacing with the street well investors can live if they want in the

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lovely dark shadows of Erewhon. Omnibus accounts are sort of like your own [Full moon in a dark sky]

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custom mutual fund without the whole nav, net asset value stamp requirements at

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the end of each trading day and all the other regulations and filings and legal

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crap needed for publicly offered securities it's like having a fully [Book labelled my very own omnibus account]

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gassed up bus with a working GPS and Waze system you can drive anywhere you [Guy sat on a bus]

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want on the investing landscape you don't have to tell anyone outside of

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your own partners about it, and it works great as long as you all want to eat the

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same kind of financial cooking.. [Omni asking Carni if he is going to finish his food]

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