Both Avanza and Nordnet, which no longer offer their customers BDCs, have rightly received harsh criticism on various platforms. If you are to believe everything people write on the various platforms, Nordea is the big winner as most write that they intend to leave Avanza or Nordnet in favor of Nordea.
An online rumor says that Avanza is working with its supplier of these securities on the production of a document that removes the ban on buying these securities. A rumor Avanza has completely refrained from commenting or even mentioning. Since before, Swedish citizens and residents are not allowed to buy American ETFs.
Investing in a BDC requires you to be well read and knowledgeable about the company, such as whether it is an "externally or internally controlled" company. The structure on which the company is run can have a major impact on the cost situation, an internally managed BDC is a company that hires its own staff to manage the company's customers, capital and strategy.
Whereas an externally managed BDC outsources these tasks to an external, third-party, management company for a fee. Generally speaking, it is cheaper to run an internally managed BDC compared to an externally managed one. An externally managed BDC often has costs that correspond to approximately 30 – 40% of the turnover or 4 – 4.5% of total assets. A well internally managed BDC can run its business at just over half of that cost.
The main reason for using externally managed BDC is that you get a much simpler and more flexible infrastructure, you don't need your own analysts, HR, managers or large offices. Everything is outsourced to a third-party company, which effectively means that the company is basically just an "umbrella" made up of its invested assets. Unlike an internally managed BDC that has these features in-house.
AI generated image with Grok
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