What you should Know about Independent Asset Managers
More and more private investors, foundations and institutional clients rely on independent experts for the management of their assets. In Germany there are about 500 asset managers who have a state licence issued by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, Federal Financial Supervisory Authority).
Why should you entrust precisely these financial experts with your property?
An independent asset manager is not subject to any corporate interests. They will make their investment decisions exclusively on the basis of the defined investment strategy and the risk-return profile of their clients and not based on sales targets. They may, based on the investment strategy discussed, use all products offered by the market.
State Licence and Ongoing Monitoring
There are similar strict statutory requirements for independent asset managers as for banks and savings banks. They own a license issued by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, Federal Financial Supervisory Authority). To this end, they must demonstrate reliability and sufficient qualification. Thereafter, the business is monitored by BaFin and the Deutsche Bundesbank on a regular basis. In addition, asset managers are audited every year by certified accountants in accordance with the German Securities Trading Act (“WpHG”).
Costs and Transparency
Asset managers do not receive hidden commissions. They agree upon either a basic fee as a fixed amount of the assets on a percentage basis and/or a profit participation with their clients. There are no costs hidden in products or transactions.
Experience shows that the fees for an independent asset manager who has a modern private bank such as V-BANK in the background are significantly lower than for a classic consultancy on the part of banks and savings banks.
High Technical Competence and Continuity in Servicing
Asset managers must already demonstrate their competence when applying for a state licence. In addition, they usually own numerous technical additional qualifications and training going beyond the sheer requirements of asset management. Asset managers offer personnel continuity in servicing their clients in the long run.
Securities and account balances are exclusively managed in the name of the clients at a bank or savings bank. Securities are classified there as special assets and correspondingly protected at the respective bank or savings bank.
Where can I learn more?
Please write to us at: firstname.lastname@example.org
Independent asset managers are not obliged to product or company interests and enable an objective and unobstructed view of things. For example, here on our asset managers blog.