Page 22 - ASSET MANAGER 11 (EN)

TWO RULES FOR MORE
The investor with an emotional attachment to his asset manager reacts, often only when it is already too late. If the custodian bank earns more than the investor in today's time, the investor is usually himself to blame.
Author: Roger Fromm, Founder INVESTORY AG
ROGER FROMM
INVESTORY Marktgasse 15 CH-8302 Kloten 00800 0055 0022
info@investory.ch www.investory.ch
SUMMARY
Determine how high the total costs--as a percent of the desired return--may be at the maximum. Implement measures to be able to meet the cost target.
For what reason have new investors found their way to INVESTORY in recent years? I got to the bottom of this question. As a rule, there has always been a problem with the previous bank. Based on these findings, I have formulated the following two invest- ment recommendations.
1 DEFINE COST ROOF
The best investment strategy does not translate to success if the costs are too high. But how much may or should the custodian bank cost at most? It's best to set a maximum cost cap and implement it consistently, even before invest- ing. For a fixed asset of 750 000 francs, 10 % of the target return is realistic.
The following returns can be used for calculation: equities 7 %, real estate 5 %, commodities 4 %, safe bonds in CHF -0.5%. Depending on the composition of the portfolio, returns between 7 % and 0 % are expected. The total cost of the bank in a pure equity portfolio should thus be a maximum of 0.7 % per annum.
If the investor does not have the necessary basic knowl- edge or does not have the time to manage his assets, ad- ministration will receive 10 to 20 percent, leaving the inves- tor 70 to 80 percent of the targeted target return.
However, many custodian banks are too expensive to di- versify into direct investments. The investor should in this case be satisfied with an ETF (Exchange Traded Fund) or switch to a cheaper custodian bank.
According to a comparison of banks on pages 17 to 21, Postfinance, cornertrader, Swissquote Bank and VZ Depotbank are low-cost, transparent and very well-capi- talized custodian banks.