Schroders Private Bank Schroder Fund Investment AccountDocument Transcript
Schroders Private Bank
Schroder Fund Investment Account
Fund based discretionary asset management
The advantages at a glance
Active asset management for assets Swiss private banking services
from CHF 250,000 Schroders has been operating in Switzerland for
Balanced asset management covering all mar- over 30 years. The Schroder Fund lnvestment
kets and asset classes can only be achieved with Account is managed by professionals located in
investment funds. With so many funds to choose Zurich and Geneva. As an investor, you deal with
from, Schroders attaches great importance to a local relationship manager and have all the ad-
the right selection. The Schroder Fund lnvest- vantages of a Swiss private bank.
ment Account provides active asset manage-
ment using Schroder funds and best-in-class Asset management at a competitive price
third party funds. The pricing of the Schroder Fund lnvestment
Account is transparent and simple. The portfolio
Full expertise and resources of the management fee covers all costs arising from the
Schroder Group management of the fund account by Schroder &
With funds under management of over CHF 250 Co Bank AG, such as custody account mainte-
billion and 200 years of experience, the Schroder nance, strategy adjustments, fund selection and
Group is a world leader in asset management. administration. Only a small transaction fee is
Our research team is free to exercise its own jud- charged for purchases and sales of Schroder
gement in its investment decisions, and is not Funds.
tied to any sales organization. This expertise is
available to both the investment funds we mana- A choice of four risk profiles
ge and the portfolio managers of the Schroder Choosing the right degree of risk for the individ-
Fund lnvestment Account. ual investor is of utmost importance. To this end,
the Schroder Fund lnvestment Account offers
Schroder funds and more investors four different risk profiles, from income
Schroders manages a broad range of investment oriented to growth oriented as well as an in-
funds, many of which are considered among the vestment model with emphasis on alternative in-
best products in their class. In those individual vestments. Each risk profile has a defined max-
markets or investment sectors which may not be imum equity allocation and a choice of four refe-
covered by the Schroder fund universe, however, rence currencies: Swiss Franc, Euro, Sterling or
the Schroder Fund lnvestment Account also em- US Dollar.
ploys a carefully selected range of funds run by
other investment managers. A team of research
specialists carefully selects the third party funds
Your money is invested exclusively in investment
funds, and in accordance with your chosen risk
profile. In exceptional cases, structured products
may also be used. The portfolio management
function involves adjusting the individual asset
classes (cash, bonds, equities, alternative invest-
ments) to changes in market developments, and
selecting appropriate funds. This way, you can
leave the time- consuming task of managing your
investments to the experts.
The Schroder Fund lnvestment Account is availa-
ble to clients who invest at least CHF 250,000
Schroder & Co Bank AG’s portfolio managers
have consistently produced good investment
performance combined with careful monitoring
of risk. Many funds managed by the Schroder
Group are among the best products in their
class. In the interests of our clients, however, our
asset managers also employ third party funds
selected on the basis of strict quality criteria.
and fund selection
The Schroder Fund Investment Account team Fund selection
attaches great importance to the careful selec- Once the investment policy has been defined,
tion of funds. the fund selection takes place based on quanti-
tative and qualitative criteria. A fund selection
Investment policy merely based on rankings seldom leads to positi-
Our general investment policy, which is based ve results. A behavioural fund analysis carried out
upon a comprehensive evaluation of the econo- in different market phases, though, is of crucial
my and the capital and foreign exchange mar- importance. A fair number of fund managers
kets, is the very first step of the selection pro- achieve good performance in certain market
cess. Experts define the risk profile of each stra- conditions but not over a full investment cycle.
tegy by allocating assets to individual asset clas- This means that an investment fund may be suc-
ses. cessful on a short term basis but not necessarily
over the long term.
Further steps consist of determining the geogra- Our fund investment team carries out this analy-
phic distribution within the equity portfolio as well sis using well recognised statistical methods.
as the risk profile underlying the fund selection The analysis is completed with a qualitative fund
(e.g. dynamic long term growth or income orien- management assessment which comprises
ted). Simultaneously, the range of bond maturi- management continuity, experience, fund size
ties to be invested in is defined. The assessment and quality of reporting.
of foreign currency risk, which may have to be
hedged, is the final stage of this process. Even though each fund selection is continuously
reassessed, frequent changes from one fund to
another are avoided.
Investment Policy Schroder & Co Bank AG
Equities Bonds Alternative Investments Cash
Regions Style Duration Quality Quality Style Currency
view Fund Selection
Fund Portfolio Selected profile
Asset management with funds: the reasons The broad range of funds available to our clients,
why be it Schroder funds or third party funds, permits
Today’s global financial markets make it imperati- not only a flexible reaction to market conditions
ve to consult analysts specialised in specific re- but also the selection of funds which comply with
gions or types of investments. The individual as- the investment style and risk behaviour of the se-
set manager and client advisor rely, therefore, on lected strategy.
the expertise of a whole team. With the excep-
tion of very large portfolios, the required risk di-
versification within a particular portfolio is only
possible through the use of investment funds. By
not investing in individual equities the investment
strategy can be adjusted in a much more cost-
effective way. In other words, this approach
achieves a good level of diversification with the
resulting positive impact on risk.
Client service and reporting
As an investor, you can discuss the investment
strategy and fund selection with your personal re-
lationship manager at any time. In addition, you
receive a detailed quarterly report on the status of
your investments and the performance of your
portfolio. On request, we will also supply you with
the quarterly reports of the individual funds in your
The choice of risk profile has a major influence on
both the future performance and the risk potential
of your portfolio. The reference currencies availa-
ble within the four risk profiles are Swiss Franc,
Euro, Sterling and US Dollar. You can choose
from the following four risk profiles:
This risk profile emphasises the generation of in-
come from fixed income investments and, to a
lesser degree, capital gains from equity invest-
ments. Investments in uncorrelated alternative in-
vestments1 provide stability to the portfolio. In-
vestments in correlated alternative investments
add potential for further capital gains.
Risk categorization: Moderate
Long term growth
With a higher proportion of equity investments
and correlated alternative investments, this risk
profile generates less income but provides a high-
er degree of potential for capital gains with more
risk. Investments in uncorrelated alternative in-
vestments provide additional stability to the port-
folio. 5 1
Risk categorization: Considerable
Within alternative investments, there are correlated and uncorrelated investment ca-
tegories. The difference between these two categories is established by their expec-
ted price behaviour in relation to traditional investment categories (equities/bonds).
Correlated alternative investments (e.g. private equity) show similar price trends to
equity markets whereas the performance of uncorrelated alternative investments
(e.g. hedge fund of funds) should not be dependent on traditional markets.
Dynamic long term growth
This risk profile emphasises capital gains with up
to 90% of the portfolio invested in equities and a
lower proportion of uncorrelated alternative in-
vestments. With considerable investments in cor-
related alternative investments, this investment
profile carries higher risks.
4 5 1
Risk categorization: High
This risk profile aims for stable returns exceeding
traditional fixed income securities through em-
phasis on uncorrelated alternative investments. It
also allows for investments in equities.
Risk categorization: Moderate
Within these risk profiles, the chosen reference
currency determines the currency allocation of
your portfolio. Occasionally, the currency exposu-
re may be hedged.
2 Bonds Disclaimer
3 Equities This material is not intended as an offer or solicitation for the pur-
chase or sale of any financial instrument. Income and risk expecta-
4 Uncorrelated alternative investments
tions specified above are based on past performance and are not a
5 Correlated alternative investments guarantee of future returns. The value of investments in all risk cate-
gories and over different time frames may fall or rise. Readers
should consult additional information on each individual risk profile
Terms and conditions
Investment universe Fees1
The investment universe covers those investment – Investment strategy, fund selection, custody
funds which have been selected by Schroder & Co account fee and administration:
Bank AG, as well as structured products, cash on Asset value up to CHF 1 million: 0.90% p.a.
current account, fiduciary investments and money Asset value above CHF 1 million: 0.75% p.a.
market funds. With regard to alternative investments, Charged quarterly on a pro-rata basis
fund of funds products and publicly quoted private Minimum fee CHF 600 per quarter
equity investment companies are permitted.
Portfolio management – Transaction costs:
Schroder & Co Bank AG is responsible for select- CHF 100 all-in fee for the purchase and sale
ing funds and investing in line with its internal in- of funds. In individual cases, a front end fee
vestment guidelines and the chosen risk profile. may also be charged by third party funds.
Portfolio management adheres to the investment
guidelines of the Swiss Bankers’ Association and Stamp duty and VAT, where applicable, are not
the provisions of Schroder & Co Bank AG’s asset included.
Additional services (numbered custody accounts,
Size of account retain mail held at the bank, securities deliveries,
The Schroder Fund lnvestment Account is tax statements and other services) are charged
suitable for portfolios with assets of at least according to a separate fee schedule.
Confirmations are issued for each transaction
made. Custody account statements and per-
formance reports are prepared each quarter.
Quarterly reports on individual funds are available
1 This fee schedule applies to Schroder Fund Investment Ac-
count discretionary asset management mandates. When in-
vestment guidelines or other particular restrictions have been
defined on an individual basis, the standard Schroder & Co
Bank AG fee schedule applies.
Loans and financing
Trust and foundation services
Custody and execution services
Schroder & Co Bank AG Schroder & Co Banque SA
Central 2 8, rue d’Italie
Postfach 1820 Case Postale 3655
CH-8021 Zürich CH-1211 Genève 3
Telefon +41 (0)44 250 11 11 Telefon +41 (0)22 818 41 11
Telefax +41 (0)44 250 13 12 Telefax +41 (0)22 818 41 12
E-mail: firstname.lastname@example.org E-mail: email@example.com