An investment trust fund is a pool of prefabricated investments whose funds come from different investors pursuing the same investment objectives. Accumulated funds are managed by licensed fund managers and placed on tables of financial instruments of the type of UITF chosen by an investor. In UITF, an investor`s money is professionally managed by a trust company. This money is invested in the client`s preferred fund. After it generates returns, the client will decide whether to cash in the money or reinvest it. By continuing your investment, you know what`s going on with your trust fund and proactively gain potential risks. This will affect your investment habits. An omnibus account is normally monitored by a futures manager. The futures manager uses the funds in the account to enter into trades on behalf of participating individual investors. This method is similar to that of an investor who leaves shares on behalf of a broker, so that the broker retains the majority of the responsibility, while allowing to take quick actions if necessary. If a country accepts an omnibus account from a foreign country, it becomes a host market. Regulatory concerns may arise depending on the host country. Since the individual investors participating in the account are not known, it is not possible to determine the intentions of the investors involved.
The inflow of foreign money can destabilize a small economic market if the omnibus account represents a very large amount of money. This is why some markets have banned omnibus accounts in order to defend themselves against destabilization or potential market manipulation. Other countries welcome the accounts and see it as an ideal method to encourage foreign investment in the hospitality market. An omnibus account allows managed trades of more than one person and allows the anonymity of people on the account. Omnibus accounts are used by futures traders. Transactions within the account are made on behalf of the broker to protect the individual identity of the two or more individuals who have been invested in the omnibus account. The broker who manages the omnibus account usually has the option of trading on behalf of investors with funds within the omnibus account. Transactions are made on behalf of the broker, although trading confirmations and bank statements are provided to clients within the account. Omnibus accounts refer to accounts containing more than one point (omni-means “a lot” and bus means “business”).
At least two people must create an omnibus account. All transactions within an omnibus account are displayed under the name of the associated broker, with the details of individual investors remaining private. In the case of China Bank UITFs, the trustee is the China Bank Trust and Asset Management Group. Each of the ten ITUFs we are currently proposing is subject to a declaration of confidence (or plan rules) that contains the investment objectives of the UITF as well as the mechanisms for setting up, operating and managing the Fund.