In search of the best investment strategy
Mr. and Mrs. Durandi are faced with an important decision. Following the successful sale of their property, they have CHF 1.5 million at their disposal and would like to invest this capital wisely. However, they don’t have the time or the necessary know-how. But how do they find the right strategy? Discussions with friends and research on the Internet quickly make it clear that there are many approaches in Switzerland. Two concepts in particular stand out: traditional asset management at a bank and independent asset management.
In order to better understand both models, Mr. and Mrs. Durandi decide to do extensive research. They arrange an initial consultation on the subject of independent asset management with Ms. Wyss, CEO and client advisor at Tareno AG. In the following article, we provide an insight into the most important questions from this discussion – the case study has of course been anonymized and simplified.
What is independent asset management?
Independent asset management offers a solution in which clients’ assets are managed without being tied to specific products or services. In contrast to traditional banks, which often promote their own financial products with a cost background, independent asset management puts the client at the center. An experienced manager such as Tareno can thus develop cost-effective and results-oriented solutions that are geared exclusively to the client’s individual situation and objectives.
What makes Tareno different from a bank?
The main difference lies in the business models. While banks offer a wide range of financial services such as mortgages, investments and payment transactions, often favoring their own products, Tareno focuses exclusively on asset management. Thanks to this independence, only solutions that are in the customer’s best interests are recommended. In addition, all fees at Tareno are transparent and there are no hidden costs or retrocessions. Clients also appreciate the personal service and the fact that their advisor remains the same. Changing advisors is very rare.
Where are my assets stored with Tareno?
Customers’ assets are always held at a custodian bank of their choice. Tareno only receives a power of attorney to execute securities orders within the framework of the agreed investment strategy. This means that the assets are held at the bank and the independent asset manager only receives a power of attorney to commission the client’s customized investment strategy. This also illustrates the triangular relationship between client, bank and Tareno very well.
Who is Tareno suitable for?
Tareno is aimed at wealthy private individuals and foundations with assets of CHF 1 million or more who value cost efficiency, expert knowledge and individual support.
How safe is an independent asset manager?
Independent asset managers such as Tareno do not hold their clients’ assets themselves, but merely manage them. The custodian bank is responsible for safekeeping, which means that the assets remain secure in the event of the asset manager’s insolvency. In addition, independent asset managers are regulated by FINMA and audited annually by external auditors.
Are all independent asset managers the same?
The independent asset management industry has changed significantly in recent years due to stricter regulatory requirements. Tareno is proud to have met these requirements from the very beginning and to hold a license from Switzerland’s highest financial market supervisory authority (FINMA). With a team of 40 employees, we offer our clients the highest level of professionalism in the investment business as well as portfolio management and excellent customer service around the clock in Basel, Zurich and Luxembourg. As an owner-managed company, the owners, including myself as CEO and partner, are personally responsible for the business activities, which creates additional security and trust.
Will my investment with Tareno cost more?
No, quite the opposite. Tareno optimizes the fee structure for its clients and generally reduces the overall costs for its clients. As an independent partner, we negotiate with the respective custodian bank on the basis of the total volume booked and thus ensure that 99% of new clients receive more cost-effective asset management overall.
Can I have a say in the investment strategy?
Yes, clients can express their wishes. In the case of investment advice, you have a say, while in the case of an asset management mandate, our specialists make the decisions within the framework conditions you set. However, the investment strategy is always determined jointly and implemented according to the client’s specifications. We are also regularly awarded the title of best asset manager in Switzerland for our performance by an independent institute in collaboration with Bilanz.
Which custodian banks does Tareno recommend?
Tareno works with 12 custodian banks. We are happy to help you understand the advantages and disadvantages of each bank and make the right choice.
Customized solutions at the best price
After this initial meeting, Mr. and Mrs. Durandi were surprised at the alternatives they had to traditional asset management. They realized that independent asset management would not only give them more flexibility, but also represent a decisive step towards their financial success. Determined to continue on this path, they asked for a personalized quote from Tareno. Now they are looking forward to getting to know the first client advisors to find out who suits them best and will be at their side as a personal advisor in the long term. Once the right advisor has been found, they will work together to develop an investment strategy that is optimally tailored to their risk profile and financial goals.
Do you have any questions?
We are here for you and our author Ms. Sybille Wyss is at your disposal.
Responsible
Sybille Wyss
CEO and partner of Tareno AG
s.wyss@tareno.ch
Disclaimer
The statements and information in this publication have been compiled by Tareno AG to the best of its knowledge, in part from external (publicly accessible) sources which Tareno AG considers to be reliable, for information purposes only. This publication is not the result of a financial analysis. Tareno AG and its employees are not liable for incorrect or incomplete information or for losses or lost profits resulting from the use of information and the consideration of opinions expressed. The statements and information do not constitute a solicitation or invitation, offer or recommendation to buy or sell any investment instruments or to engage in any other transactions.
Nor do they constitute a specific investment proposal or other advice on legal, tax or other issues. A positive return on an investment in the past is no guarantee of a positive return in the future. The statements, information and opinions expressed herein are current only as of the date of this document and are subject to change at any time.
Duplication or reproduction of this publication, even in part, is not permitted without the written consent of Tareno AG. The “Guidelines to ensure the independence of financial analysis” of the Swiss Bankers Association do not apply. [picture: Istock, shutterstock, Pixabay, Unsplash. Orignale: Marijke Vosmeer, Charts: Tareno AG]