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Posts Tagged ‘investment structure’

Hub Investors — A Good Financial List?

Friday, July 31st, 2009

Even with more than 60,000 mailing lists on the market, I still couldn't find a mailing list for hub investors. If you are looking for a financial market niche, then this may be one to take a closer look at. Who are these investors? How can they be identified? You may just want to settle for an accurate definition for now.

Usually, when posting a new blog entry I do so with the intention of providing helpful marketing knowledge or resources, like the most recent social media cheat sheet. However, this time I'm asking for a little help with the following questions:

1) Would hub investors be a meaningful segment?

2) How could these individuals be identified?

Here's what I've learned so far. According to Investopedia, there is an investment structure called the 'Hub and Spoke Structure', in which several investment vehicles pool their assets together by contributing to one central investment vehicle. Each investment vehicle remains individually managed; the smaller investment vehicles are referred to as the "spokes" and the central investment vehicle is referred to as the "hub".

This model insulates the 'hub investors' from taxes incurred by the 'spoke investors' on foreign investments. That's the best I can do for now, so I'll invite a few foreign investment specialists to comment with a better explanation.

From a marketing perspective, I would expect that these individuals are saavy investors, with capital resources and good accountants. They also may be investing in some emerging international markets. If they could be identified, would they be good prospects for The Economist or Foreign Affairs? I'm thinking that many of them already subscribe to Forbes.

For more information about the 'hub and spoke' investment structure, you may also want to check out the definition for the 'master-feeder' structure on Wikipedia.