Page 28 - ASSET MANAGER 9 (EN)

28 • DIGITAL ALTERNATIVE ASSET MANAGER • NO. 9/2018
THE CLEVER ALTERNATIVE
TO THE EXPENSIVE INVESTMENT FUND
INVESTORY allows financial experts to digitize their own investment strategies without having to resort to investment vehicles such as funds or structured products.
Author: Roger Fromm, Founder INVESTORY AG
In this report we show how INVESTORY can be sensi- bly used instead of a fund structure. INVESTORY offers uniqueUSPs(uniquesellingproposition)andisnoordinary investment platform.
Advantage 1: The investor always holds all securities in his personal portfolio (no collective investment). Advantage 2: INVESTORY gives financial experts access to the growing market of digital investors.
STRATEGY PERSPECTIVE
ACCEPTANCE
FUNDS
INVESTORY
ACCEPTANCE
FUNDS
INVESTORY
Asset under management
10,000,000
10,000,000
20,000,000
20,000,000
Gross performance
4.50 %
450,000
450,000 6.50 %
1,300,000
1,300,000
Management fee
1.00 %
100,000
100,000
1.25 %
250,000
250,000
Performance fee
10.0 %
45,000
45,000 0.00 %
0
0
Net performance
3.05 %
3.05 %
5.25 %
5.25 %
INVESTOR VIEW
ACCEPTANCE
FUNDS
INVESTORY
ACCEPTANCE
FUNDS
INVESTORY
Transaction costs
1.00 %
0%
1.00 %
0%
Deposit fee
0.16 %
0%
0.16 %
0%
Holding period in years
5
5
Conversion per year
0.36 %
0%
0.36 %
0%
Net/net performance
2.69 %
3.05 %
4.89 %
5.25 %
PROVIDER VIEW
ACCEPTANCE
FUNDS
INVESTORY
ACCEPTANCE
FUNDS
INVESTORY
Variable costs per year
0.35 %
35,000
24,000
0.25 %
50,000
24,000
Fixed costs per year
50,000
0
50,000
0
net revenue provider
60,000
121 000
150,000
226,000
net revenue in % AuM
0.60 %
1.21 %
0.75%
1.13 %
Advantage in favour of the provider
102 %
51 %
Table 1: An example of CHF 10 million and CHF 20 million shows how the ceiling of costs at INVESTORY has an impact on the revenues of the provider and the investor compared to a conventional fund structure.
Source: INVESTORY AG