Page 18 - ASSET MANAGER 11 (EN)

18 • BANK COMPARISON ASSET MANAGER • NO. 11/2019
PASSIVE INVESTOR
Deposits Transactions
Switzerland
Europe
USA
Total trades Average
Portfolio Turnover
4x 2x 4x 2x 4x
16 x
in CHF 500 000
Volume
49 900 24 900 24 900
9 900
9 900
408 400 25 525
0.817 x
10
60% 20% 20%
Positions as of 31/12.
Switzerland 6 x Europe 2 x USA 2x
Foreign exchange trades 2x 25000
ACTIVE INVESTOR
Deposits Transactions
Switzerland
Europe
USA 20x
in CHF 1 000 000
Volumen
49 900
49 900
49 900
1 896 200 49 900
1.896 x
15
50% 15% 35%
45000
Total trades Average
Portfolio Turnover
38 x
Positions as of 31/12.
Switzerland 6 x Europe 4 x USA 5x
Foreign exchange trades 5x
10 x 8 x
TRADER
Deposits Transactions
Switzerland
Europe
USA
Total trades Average
Portfolio Turnover
20x 10x 10x 10x 20x 70x
in CHF 250 000
Volumen
24 900 9 900 24 900 9 900 9 900 1 143 000 16 329
4.572 x
17
40% 15% 45%
Positions as of 31/12.
Switerzland 6 x Europe 4 x USA 7x
Foreign exchange trades 10x 25000
In the comparison, the total cost, including tax assessment, is calculated all-in for these three investor types.
Credit Suisse explains this as follows: "We have come to the conclusion that we do not want to partici- pate in the comparison of foreign exchange rates because individual customer constellations cannot be sufficiently taken into account in such a com- parison."
Bank CLER explains:
"Foreign exchange margins depend on the current market situation and vary depending on the busi- ness, amount and currency. That's why we cannot make a reliable statement."
VP Bank argues:
"Your request primarily concerns our Direct Custom- ers / Execution Only segment. These customers are not a core target group of VP Bank. In addition, the fees requested here do not make sense for us as a private bank when compared with Swiss online/retail banks, since we are not a retail bank."
Some banks did not respond at all or too late, did a com- plicated job or did not answer our questions correctly. Un- cooperative behavior has left its mark on the evaluation of transparency with participation, response time and overall impression.
Individual banks are not aware of transaction-size-depen- dent staggering and only have a foreign exchange rate in the system. For larger transactions, it will be expensive for the investor if he does not contact the bank first.
On average, the passive investor's foreign exchange costs are 20.3% of the total costs, for the average inves- tor 26.2 % and for the trader 36.1 %. Foreign exchange margins thus make up a substantial part of the total costs and are a major earnings pillar for the banks.
In order to not be accused of having constructed a case study for a bank, we calculated three different, realistic, Swiss investors from the core affluent segment from A to Z. All banks in this comparison offer an according quote for this customer target group.
Every Swiss investor today needs a tax statement from his bank. This service is integral, even with the execution only investors.
Hardly any bank, however, lists these costs in the overview of fees and only a few place this information online. The costs for these for most banks are between 90 and 150 francs. So there is no reason not to include this service in the fee overview.
Source: INVESTORY AG