Schroders Private Bank Schroder Fund Investment Account


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Schroders Private Bank Schroder Fund Investment Account

  1. 1. Schroders Private Bank Schroder Fund Investment Account Fund based discretionary asset management
  2. 2. 2–3 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 used.
  3. 3. Schroder Fund Investment Account 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 of assets. Performance 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.
  4. 4. 4–5 Investment process 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.
  5. 5. Investment Policy Schroder & Co Bank AG Asset Allocation Equities Bonds Alternative Investments Cash Regions Style Duration Quality Quality Style Currency Consolidated 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.
  6. 6. 6–7 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 portfolio. Risk profiles 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:
  7. 7. Risk profiles Income oriented 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. 5 1 4 Risk categorization: Moderate 3 2 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 4 Risk categorization: Considerable 2 3 1 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.
  8. 8. 8–9 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 2 Risk categorization: High 3 Enhanced return 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. 1 2 Risk categorization: Moderate 4 3 Within these risk profiles, the chosen reference currency determines the currency allocation of your portfolio. Occasionally, the currency exposu- re may be hedged. 1 Cash 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 mentioned.
  9. 9. 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. management mandate. 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. CHF 250,000. Reporting 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 on request. 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.
  10. 10. Comprehensive Wealth Management Advisory services Discretionary management Loans and financing Trust and foundation services Art consulting 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: E-mail: