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Asset management

What exactly is
asset management?

Asset management independent of any financial institutions functions as a three-way relationship between the client, the custodian bank and the asset manager. The clients’ assets and securities are deposited with a reputable custodian bank in their own name. By virtue of a power of attorney given by clients, the asset manager oversees the individual client’s asset portfolio and is only allowed to handle investments, and is not permitted to make payments or withdrawals. The asset manager must abide at all times with the contractually-binding parameters jointly agreed with the client. The asset manager is free to select suitable investment opportunities from a global spectrum, and is entirely free of any conflict of interest regarding product placement or the frequency of transactions. The sole guiding principle is the benefit to the client.

Our approach

Our approach at a glance.

<p>Detailed<br />Analysis</p>

Detailed
Analysis

At the centre of each new client relationship is a detailed analysis of the assets as a whole, as well as the familial and financial circumstances of each client. We clarify your needs in detail, establish your expectations regarding risk and return, and assist you in selecting the investment strategy that best fits your own individual situation. At the same time, we advise you on choosing an appropriate custodian bank. When evaluating banks and investment products, we always assess them keeping the best possible value for money at the forefront of our mind.

<p>Detailed <br />Investment Proposal</p>

Detailed
Investment Proposal

A detailed investment proposal sets out how your portfolio could look and details the related risks and opportunities.

<p>Converting decisions <br />into action</p>

Converting decisions
into action

The Investment Committee decisions are implemented in the clients' portfolios by the portfolio managers. Our securities accounting department monitors and books all transactions that are always carried out in strict compliance with the four eyes principle. The Compliance Officer regularly checks all portfolios to ensure that the terms of the contractual agreement with each client are properly and strictly adhered to.

<p>Statement of Assets, <br />Performance Statement</p>

Statement of Assets,
Performance Statement

Quarterly (or at a regular interval of your choice), you will receive a clear, detailed overview of your assets, including a performance statement as well as a comprehensive investment report.

<p>Competent<br /> counterparts</p>

Competent
counterparts

You will all times be advised by the same trusted contact, who will be a member of the company's management team, and dispose of profound expertise and extensive life experience.  A portfolio manager and a deputy support your contact.

Fees

Various
fee options

There are various options to choose from regarding fees, which are calculated as a proportional amount of the average invested capital: fixed fees, fixed fees plus a share in the performance, as well as an all-in fee.

Fixed fees

Fixed fees are calculated on a quarterly basis. The fees are fixed as a percentage of the average invested capital of the previous quarter and are calculated pro rata temporis. A share in any performance achieved is not included in this option.

Fixed fees and a share in performance achieved

In addition to the fixed fee mentioned above, an annual performance-based fee is charged based on the performance achieved. This is fixed at the rate of 10% of the net growth achieved in a calendar year (=growth after deduction of all bank charges and the fixed fee) that is greater than the contractually specified target return on investment. The performance-based fee is waived if losses were incurred in previous accounting periods. The fee will be waived until such time as the losses are fully redeemed.

All-In Fee

Working in collaboration with certain custodian banks, we are also in a position to offer our clients an all-in fee. This fee includes our administration fees as well as bank charges for administration, custodial care and transactions. This is a quarterly fee calculated at the end of each quarter, and is based on the average invested capital during this period.

Analysis

Analysis of services offered by competing institutions and consolidations

We are happy to carry out analyses on any existing portfolios you may have with competing institutions and provide you with a balanced assessment. Our software enables us to provide you with a consolidation of different portfolios, even when held at other custodian banks, so that you can easily keep track of your assets as a whole.

Frequently asked questions

Frequently
asked

How often do I receive information about the progress of my investments?

You decide how often you would like to receive information. Your contact person is always at your disposal. Usually, you receive a detailed statement of assets with the investment report on a quarterly basis, however, you can specify how often you would like to receive this information to suit your own individual needs.

Do I have independent insight to my account and investments at any time?

Yes, you can obtain any information you would like about your cash balances and current holdings as well as transactions directly from the bank at any time and without our knowledge or involvement. If you wish, the bank can send all correspondence directly to you.

Can I withdraw money from the assets under discretionary mandate if necessary?

Yes, since we invest in stock exchange traded equities or otherwise regularly tradable securities, if required, we can sell investments, either in total or in part, swiftly so that money can be withdrawn from the assets held under discretionary mandate. In order to avoid unnecessary costs, however, it would be advantageous to advise us of your intention to make any such withdrawals as soon as feasible.

Can I get a second opinion from the bank?

No, within the context of the three-way relationship between bank, the client and external asset manager, the bank will not comment or offer opinions on investments transacted by us or provide you with investment alternatives.

Can I use e-Banking at the bank?

Of course. All bank services used by you are also available within the context of a discretionary mandate without any restrictions. However, within the framework of an asset management mandate, we work on the assumption that investment business will be exclusively initiated by us.

What bank charges will be incurred?

We have negotiated particularly favourable terms for our clients with most custodian banks and these apply to you. With certain banks, this may also be an all-in-fee instead of the customary custodian and brokerage charges.

Do I have to check the individual bank statements myself?

No, we do that for you. We receive a copy of all bank statements, which we then check and enter into our portfolio management system.

How do you calculate the fees?

The fee is calculated on a quarterly basis pro rata temporis based on the average invested capital of the previous three months and then debited directly at the bank from your account.

How do you calculate the share in performance?

The performance fee is charged in addition to the fixed fee. It amounts to 10% of the net increase (= growth after deduction of all bank charges and the fixed fee) achieved during the calendar year that is greater than the contractually specified target return on investment. The performance fee is waived if losses were incurred in previous accounting periods. The fee is waived until these losses have been fully recovered.

What are the terms of notice that I have to observe?

A discretionary mandate is subject to contractual law and accordingly may be terminated at any time without giving prior notice.

Who monitors whether everything you undertake is legal and in the best interests of clients’?

By law, asset management companies, as well as their executive bodies and client relationship managers, must be registered and obtain official authorisation. We are subject to the statutory regulations and supervision of the Liechtenstein Financial Market Authority (FMA), which itself formulates its regulations in alignment with the strict European Union regulations. The FMA regularly conducts audits concerning compliance with the law and professional ethical standards.

Sometimes you read reports that asset managers do not invest their clients' money at all, but rather misappropriate it for their own purposes. How can I prevent this happening?

Your money is not deposited with us but is deposited with a reputable custodian bank, from whom you can obtain information about the current status of your account and transactions at any time yourself. The special power of attorney for asset managers only allows an asset manager to carry out securities and foreign exchange transactions within your bank relationship. Payments and withdrawals, with exception of the debiting of our fees, cannot be carried out by us. Furthermore, our activities are closely supervised by the FMA.