Why did we establish "Objective"?
Alternative investments, as opposed to public investments, which provide a large amount of accessible information, are characterized by complexity, lack of information and a diverse range of investment channels. The difference between alternative funds, even between those engaged in the same field, is very wide, and thus it is highly important to acquire knowledge and complete understanding prior to making the investment.
Preparing an analysis requires multiple financial inputs and skilled and professional staff; however, not all investors have such resources. Having no way to evaluate the many raising funds, some investors do not proceed with the investment, even if it matches their investment profile. By outsourcing analysis services to Objective, the investor reduces expenses and is able to evaluate a greater number of investments.
By maintaining neutrality and objectivity, Objective analyzes and monitors each investment throughout the lifespan of the fund. These comprehensive analyses facilitate and shorten the assessment process and allow investors to review several investments simultaneously in order to select the best-suited investments for their portfolios.
The analysis Objective provides is an in-depth analysis of the fund and high-quality information to the investor about its activities. The analysis is not a recommendation whether to invest or not. Through the analysis, investors collectively obtain all the information for the purpose of making a decision and each investor decides whether to invest, inter alia, in accordance with investment policies, holdings and other considerations.
How does Objective maintain its objectivity?
In recent years, new investment channels have been emerging and added to the traditional capital market. In light of the multiplicity of options, investors attach extra importance and bigger hunger for objective information and reporting.
Since outsourcing\external entities are part of the investment process, the question then arises, how do these entities maintain objectivity? There is criticism among investors regarding the conduct of financial entities, as at times they receive compensation from the audited entity and/or the audited entity and the auditing entity might be related to each other in a conflict of interest.
Objective sets the value of objectivity as a supreme value and aims to maintain it via several clear rules:
1. Only the investor can initiate an analysis
The supervised fund cannot initiate an analysis or send an existing analysis to the investor, since the analysis is not on behalf of the fund. Also, only the potential investor can order an existing analysis from the analysis pool. The decision regarding the identity of the transferor of the payment (the fund or the investor) for the analysis services is made between the investor and the fund.
2. Fixed cost regardless of the investor’s identity
Objective charges a fixed payment per investor regardless his size and its raising potential.
3. Objective’s income does not depend on the investor’s decision
The analysis helps investors get all the pre-investment information which assists in making an investment decision, whether to invest or not. Objective receives a fixed pay regardless of the investor’s decision.
4. Objective’s income does not depend on the volume of investment
Objective does not receive a percentage of the transaction as customary in the capital market, the cost of our services is a fixed cost and therefore Objective has no interest in the analysis recipient increasing their volume of investments.
5. Structured and uniformed work process
Objective works in the same way between investors and funds.