ach portfolio is composed of a number of fully transparent separately managed accounts. An independent Bermuda-based administrator oversees the accounts at the position level on a daily basis. This allows monitoring of exposures and leverage to ensure style purity and investment compliance. In addition, an independent U.S.-based daily calculation agent is employed to further ensure investment compliance.

Managed accounts are held in the name of the Segregated Accounts Company ("SAC") at one of a number of prime brokers with credit ratings above "A". Each account has its investments directed by a fund manager pursuant to an investment management agreement that allows Lyra to set and monitor compliance with investment guidelines. Lyra may remove managers and liquidate accounts for violations.

Among other benefits, managed accounts allow greater security for clients. Through the Segregated Accounts Company, organized under Bermuda law, each managed account has statutory limited recourse which provides enhanced protection to clients by excluding the recourse of any liabilities, duties or obligations of the other managed accounts. The only discretion given to the underlying managers is to make investment decisions within their strategy expertise. Thus, the structure helps to mitigate the operational risks of traditional hedge fund investments.