Page 23 - ASSET MANAGER 11 (EN)

INVESTMENT SUCCESS
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2 DO NOT TRUST BLINDLY
If an investor is only with a single asset manager, the in- vestor is only delivered a part of this. Business owners and homeowners especially should take care that business as- sets, mortgages and private assets are placed with very different banks.
Distributing business relationships to different branches of the same bank is not a good solution. Thus, the customer gains no additional security and no further view of the mar- ket. Apart from this, there are banks that can offset their claims against the customer across branches, whereas in the case of a bankruptcy, the customer cannot offset his claims against the bank. Such risks can only be avoided by working with different banks.
Anyone who has been with the same asset manager for years and has never done a cross-comparison just be- cause the adviser is personable has a problem. By the time an investor reacts with a strong emotional bond, if things do not go the way they should, it's generally already too late. Recurring bad investment results are tolerated longer in an emotional bond than in clients who act rationally.
The invitations to a Formula 1 race, golf tournament or any other event is an effective tool for engaging the customer emotionally. He pays indirectly and finances his participa- tion through his fees.
The investor should also be able to assess the results and performance of the asset manager. If he is unable to as- sess the performance himself, it is advisable for him to di- vide his assets between two or more asset managers and to compare the results sporadically. In this way, he auto- matically gets a feel for it and can assess the results better through this comparison.
The best place for the investor is a small competition. The investor then compares the results at the end of the year and then transfers part of the investment amount from the worse administrator to the better administrator. In this way, his fortune shifts to a better asset manager in a clear and rational process.
Of course, this approach only makes sense if all asset managers receive the same investment guidelines and in- vestment horizon.
SUMMARY
Separate assets and businesses and place them with various banks. Do not make the asset man- ager your best friend and make rational decisions with the necessary distance. Compare and eval- uate the results. Distribute the assets to different administrators and let the competition begin.