What is described as an account where the capital of two or more investors is pooled together and jointly managed?

The concept of a commingled account refers to an investment account where the funds from multiple investors are pooled together and managed as a single entity. This setup allows for greater diversification and pooled resources, which can lead to reduced costs and increased access to investment opportunities that may be difficult for individual investors to achieve on their own.

In a commingled account, all of the investors share in the profits or losses based on their proportional investment in the pool. This structure is commonly used by institutional investors and can apply to various investment vehicles, including real estate or private equity, where the pooling of resources enhances investment capability.

This structure differs from other investment types. For example, wrap accounts are typically personalized accounts that aggregate various services and investments for individual clients, rather than pooling multiple investors' capital. A fund-of-funds account invests in other funds rather than directly in underlying assets and is more focused on diversification across multiple fund management strategies. A mutual fund account involves a specific type of investment vehicle that collects contributions from many investors to purchase a diversified portfolio of securities, but it is just one way to implement the pooling of capital and typically comes with its own governance and regulatory structure.

Thus, the term commingled account precisely captures the essence of pooling capital from