Discretionary Mandate Basel & Zurich | Tareno AG
What is an asset management mandate?
An asset management mandate offers you the opportunity to have your assets managed professionally and for the long term, without having to deal with market analyses and individual investment decisions on a day-to-day basis.
Together with you, we define your personal goals, your risk profile, your investment horizon and the appropriate investment strategy. On this basis, our portfolio management team takes charge of the day-to-day management of your portfolio.
At the same time, you will be supported by a personal client adviser. They will keep you informed about the performance of your assets, explain investment decisions to you and are available to you at all times as your personal point of contact.
‘Asset management mandate, asset management engagement and discretionary mandate’
An explanation of the terms
The various terms relating to asset management may seem complex at first. At their core, however, they describe a simple principle.
With an asset management mandate, you grant us the authority to manage your assets on your behalf in accordance with the investment strategy we have defined together.
A discretionary mandate is another term for an asset management mandate. You grant us the authority to make investment decisions independently within the contractually agreed investment strategy. This means we do not need to seek your approval before every purchase or sale.
Your assets remain in an account or custody account with your custodian bank. We are obliged to adhere at all times to the investment strategy agreed with you and to provide you with regular and transparent updates on your portfolio.
Difference from investment advice
The key difference lies in who makes the investment decisions.
With an asset management mandate, you delegate investment decisions to our investment experts. They manage your portfolio in line with the investment strategy agreed between us.
With investment advice, on the other hand, you receive specific recommendations but decide for yourself whether to act on them. You remain in close contact with your personal client adviser throughout the process.
Who is an asset management mandate suitable for?
Whether an asset management mandate is the right solution depends on your personal needs. Key factors include your knowledge of investing, your interest in the financial markets, the time you have available, and the extent to which you wish to be involved in individual investment decisions.
Some people feel more comfortable delegating day-to-day investment decisions to experienced experts. Others prefer to make these decisions themselves. We can cater to both needs with a range of different service models.
When is an asset management mandate worthwhile?
If you wish to entrust the day-to-day management of your investment decisions to experienced investment experts, an asset management mandate may be the right solution for you. You benefit from their experience and expertise without having to monitor your portfolio yourself on an ongoing basis. At the same time, you remain informed about the performance of your assets and the transactions carried out.
When investment advice is the better choice
If you wish to take an active role in managing your investments, contribute your own ideas and have a say in individual investment decisions, investment advice may be a better option for you.
Minimum investment and eligibility criteria
As a general rule, we actively manage assets of CHF 1 million or more. We are convinced that, from this level upwards, it is possible to provide clients with tailored and active asset management.
How much does an asset management mandate with Tareno cost?
Even an annual difference in costs of 0.75 percentage points can have a significant impact on long-term asset growth. This is because lower costs mean that more capital remains invested and benefits from the effect of compound interest.
The example shows that, with an annual net return of 5 per cent, a portfolio grows by around 62.9 per cent over ten years. At 4.25 per cent, the growth is only 51.6 per cent. The difference amounts to 11.3 percentage points.
The longer the investment horizon, the greater the impact even small differences in costs can have on the investment return.
Illustrative calculation example based on an identical gross return and different annual costs, with interest calculated annually. Does not take into account taxes or additional deposits and withdrawals. No forecast or guaranteed return.
Who makes the investment decisions for your portfolio?
At Tareno, investment decisions are made by a team of analysts and investment specialists. We follow a clearly defined investment process.
Decisions are not made on a whim, nor are they made in isolation by individual members of staff. A range of different assessments and areas of expertise are incorporated into the decision-making process. Responsibility for the investment process lies with our Chief Investment Officer, Simon Lutz.
Your relationship manager as your personal point of contact
Even with an asset management mandate, you will have a personal client adviser. They will support you over the long term, keep you informed about the performance of your assets and act as your direct point of contact should you have any queries or if your personal circumstances change.
Portfolio Management and Chief Investment Officer
Behind your asset management mandate is the Tareno investment team, led by our Chief Investment Officer, Simon Lutz.
The Investment Committee
Our Investment Committee comprises an extended group of experienced specialists within Tareno. Complementing the Portfolio Management Team, they contribute diverse perspectives and specialist knowledge, discuss market developments and thereby support well-informed and broadly based decision-making.
Our investment solutions for your asset management mandate
Every portfolio is different. That is why we offer you four actively managed investment solutions with different focuses: Classic, Dividend, Water and Swiss Opportunity. Depending on your personal investment objectives, needs and preferences, we will work with you to select the right solution.
How are you kept informed about your portfolio?
Even if you delegate day-to-day investment decisions, you retain an overview of your assets at all times.
Your personal client adviser will keep you regularly informed about the performance of your portfolio. You will always receive written notification of every transaction carried out. At the same time, you can view your account and custody account yourself at any time via your bank’s online portal.
Reporting and online access
Tareno deliberately does not provide any additional online access to your bank account. You will continue to use the secure online access provided by your custodian bank, where you can view your assets at any time. We will send you regular updates on the management of your assets, presented in a professional and clear manner, via the communication channel agreed with you.
Personal progress reviews
We conduct personal review meetings tailored to your needs. We review your portfolio with you at least once a year. In doing so, we do not merely look at how it has performed. Equally important is the question of whether your investment strategy continues to suit your personal circumstances, your goals and your risk profile, or whether adjustments are necessary.
Information in the event of exceptional market events
Exceptional events such as geopolitical conflicts or natural disasters can have a significant impact on the financial markets. During such periods, we keep you informed about relevant developments and their implications for your portfolio. It is precisely during challenging market conditions that the importance of an investment strategy tailored to your personal risk profile, as well as the support provided by an experienced client adviser and our investment experts, becomes apparent.
What are the risks associated with an asset management mandate?
Investments always involve risks. This applies regardless of which asset manager you choose to entrust your assets to. Returns and risk go hand in hand.
That is why it is important to us to explain the risks transparently and to work with you to define an investment strategy whose risks you understand and are able to bear.
Further information on the risks associated with asset management and securities trading can be found in the relevant investor information.
How we limit risks in the portfolio
When constructing our portfolios, we take care to identify significant risks and manage them deliberately within the framework of the agreed investment strategy. To this end, we diversify across different asset classes, sectors, regions and investment themes, taking into account, amongst other things, currency, interest rate, inflation and economic cycle risks.
It is crucial to structure a portfolio from the outset in such a way that the chosen investment strategy can be maintained even during turbulent market phases. We therefore monitor the portfolio composition on an ongoing basis, review risks and make targeted adjustments where necessary. Market corrections can also present opportunities for rebalancing or making additional purchases.
The aim is not to avoid market fluctuations entirely, but to structure risks in a way that is consistent with the chosen investment strategy.
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