INVESTMENT SCENARIO

Let’s understand with an example

In this example, a Fund Manager controls 50% of the total pool and allocates this portion among three different items. The remaining 50% of the pool is either managed separately or reserved, depending on the broader investment structure.

From the 50% managed by the Fund Manager: Item 1 receives the largest allocation with 62.5%, making it the primary area of investment. Item 2 is allocated 25%, representing a significant secondary focus. Meanwhile, Item 3 is assigned 12.5%, the smallest portion, possibly for diversification or strategic positioning.

The Fund Manager is responsible for handling trades, managing risks, and distributing any generated profits fairly based on each item's percentage within their 50% share of the total fund.

INVESTMENT SCENARIO

Let’s understand with an example

$100,000. Investor A invests $50,000, Investor B contributes $35,000, and Investor C adds $15,000. The Money Manager then trades on behalf of the investors and charges a 50% performance fee on the profits earned. During the investment period, the fund achieves a 20% gain, generating $20,000 in earnings. After deducting the performance fee of $10,000, the remaining $10,000 becomes the distributable profit.

This profit is shared according to each investor’s proportion in the pool. Investor A, holding the largest share, receives 50% ($5,000) of the net earnings. Investor B earns 35% ($3,500), while Investor C receives 15% ($1,500). This example highlights how PAMM accounts allow investors to benefit from professional fund management, ensuring both the profits and risks are distributed fairly in proportion to each participant’s contribution.