Page 29 - ASSET MANAGER 9 (EN)

The more modern and cheaper alternative to investment funds is an investment strategy with INVESTORY. The strategy provider pays for his strategy at INVESTORY a flat rate of CHF 2000 per month. In return, he receives 100% of the revenues received and can determine the pricing himself.
Investment funds with assets of less than 20 million Swiss Francs generally have a critical size. Costs have a disproportionate impact on performance and this is to the detriment of investors and to the provider.
Once investment funds have been approved for pub- lic distribution, they have the advantage that they can be purchased relatively easily from any bank. Howev- er, the disadvantage is that the customer also incurs in transaction costs and custody account fees at his bank and thus pays twice. In the example in the table on the left, the yield for the investor is reduced from 3.05% to 2.69% or from 5.25% to 4.89%. In addition, the investor makes a rather unspectacular transaction for his money and the activities in the fund are usually incomprehensible and non-transparent. An only daily NAV and redemption periods make investment funds even less attractive.
However, if the strategy provider decides on INVESTO- RY, this is cheaper and more transparent for all partici- pants than a fund structure. The strategy provider has a cost ceiling of 24,000 Francs per year. It sets its own fee model at INVESTORY and receives this quarterly. In the table on the left we have two case examples. At CHF 10 million, the strategy provider will spend more than twice as much on all costs.
Investors can follow a strategy with INVESTORY starting at CHF 50,000. The investor merely signs a mandate and commissions INVESTORY to implement the strategy of the corresponding provider. When the investor logs into his bank, he sees exactly the same positions in his portfolio as with the strategy provider and can trace each individual transaction transparently.
Because INVESTORY is liable to its investors and not to the strategy provider, the strategy provider has to put up with minimal investment guidelines and instructions, for example how a stock exchange order must be recorded. When buying a stock, the value may not exceed 12.5% of fixed assets and so on. To protect the investor, irregular orders are not mirrored. INVESTORY also checks whether the strategy description is being implemented.
Similar to an investment fund, the strategy provider knows the managed volume at all times and must take this into account when making investment decisions (liquidity of a security).
However, the financial expert does not have to keep a cli- ent dossier. INVESTORY is fully responsible as the umbrel- la for liability and must create the risk profile of the client, in which case the risk capacity and the willingness to take risks must be checked.
The benefits of investing with INVESTORY outweigh both the investor and the strategy provider, especially on the cost side.
For the investor, the digital solution is not only cheaper, he can also track all transactions in his own portfolio at any time.