Finaport presentation - Independent Asset Management Firm


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Presentation of FINAPORT - Swiss independent Asset Management Firm with offices in Zurich, Singapore, Hong Kong and Miami.

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Finaport presentation - Independent Asset Management Firm

  2. 2. 1 Agenda . About FINAPORT . Our services . Investment approach . Operations and Risk management . Our team
  3. 3. 2 About Finaport FINAPORT is a Swiss independent wealth management firm with offices in Zurich, Singapore, Hong Kong and Miami. With more than 2bln$ in assets under management, we are among top 10 independent wealth managers in Switzerland. Our clients are wealthy individuals and their families from around the world and we provide them with advice and solutions tailored to their specific needs. We offer advice and support in all financial matters, which include asset structuring, succession planning, tax planning and asset management and we work globally with carefully selected providers like banks, trust specialists, fund managers, corporate finance and M&A experts. Their offers, quality of service and costs are constantly monitored by us and made accessible to our clients.
  4. 4. 3 The idea of Independent Asset Management model The client opens an account in a custodian bank of his choice, and signs a limited power of attorney (LPoA). The LPoA allows Finaport to manage assets on client`s account, but does not allow to withdraw assets out of the bank. In parallel, the clients sign asset management agreement with Finaport, where risk profile and investment guidelines are clearly defined.
  5. 5. 4 Growth of Independent Asset Management (IAM) model in Switzerland 90% of IAMs are boutiques Assets – 80% have less than 300mln$ Employees – 93% have less than 10 Banks – 90% work with less than 10 custodian banks Locations – less than 5% have more than 2 locations 2000 2013 Number of IAMs % of total Swiss assets via IAM model 700 3 600 5% 15% Source: Hubbis 2013, Conseil 2009 The industry of IAMs is growing FINAPORT is among the top 10 Swiss wealth managers with 2bln $+ in assets and with presence in Europe, Asia and USA
  6. 6. 5 How Finaport differs from a bank? Unlike in a traditional bank, clients have the possibility to 1) Receive an unbiased independent advice, because we do not have our own products to promote. Often traditional bank employees may be biased towards promoting own bank`s products (banks have higher margin on own products), rather than offering solutions that provide the best cost/performance ratio 2) Diversify risk, by working with more than one custodian bank 3) Benefit from higher level of service – average banker in Finaport serves only 30 clients vs. 100-300 per banker in a traditional bank 4) Buy financial products from the wide array of suppliers 5) Consolidate view of financial situation in multiple banks, leveraging on Finaport`s advanced IT system 6) Access reduced fees, usually available only to institutional investors 7) Obtain transparency of fees – all fees are disclosed openly, there are no hidden charges or pay-to-play schemes
  7. 7. 6 Why clients choose IAMs vs. banks?
  8. 8. 7 FINAPORT: Custodian banks’ locations in Europe and Asia We offer to our client the access to a diversified spectrum of jurisdictions of custodian banks
  9. 9. 8 We work with top universal banks and with pure-play private banks
  10. 10. 9 Composition of our clients portfolio We have deep understanding on the needs of clients from the emerging markets Latin American clients Eastern European clients Western European clients 28% 32% 40% More than 700 clients in total
  11. 11. 10 Agenda . About FINAPORT . Our services . Investment approach . Risk management . Our team
  12. 12. 11 Our services cover 3 main areas of entrepreneurial activity Wealth planning Corporate Finance Asset management . Holding structures . Creation of trusts and foundations . Succession planning . Insurance-linked schemes . Discretionary and advisory portfolio management . Consolidation of assets among different banks . Portfolio review . Corporate Finance advisory (via partners)
  13. 13. 12 Agenda . About FINAPORT . Our services . Investment approach . Risk management . Our team
  14. 14. We start from the understanding of your needs 13 • Your assets and liabilities • Your risk appetite • Investment horizon • Family situation • Income requirements • Potential structure for tax and inheritance optimization
  15. 15. 14 Delegation style We invest for you You are actively involved in all the investment decisions We define the investment guidelines, invest for you and inform you about the results within the agreed timeframe. We develop investment suggestions, but you are actively involved in the regular discussions about the portfolio changes
  16. 16. 15 Investment committee The Investment Committee determines the overall investment process, which uses a disciplined multi-step approach. The Chief Investment Officer leads the investment committee, composed of 4 internal and 2 external members, with multi-decade experience in investing in Europe and Asia. Stephan Jaeggi, Chief Investment Officer (previously CIO of Hyposwiss and Head of Portfolio Management of Credit Suisse Switzerland) Alex Borissov, Co-Founder (previously Head of Credit Suisse Singapore and Head of UBP Eastern Europe) Daniel Bieri, Senior Portfolio Manager, Equities and Derivatives (previously Head of Trading in SwissLife Asset Management, earlier in Credit Suisse; Best Swiss Asset manager 2006) Beno Bruetner, Senior Portfolio Manager, Fixed Income (previously Senior Portfolio Manager and Bond Trader in Morgan Stanley) Rainer Rueppel, CEO, IS Partners (PHd in Math, quant models) Jimmy Hsu, Singapore (24 years in Private Equity in Asia)
  17. 17. Macro and Industry research . Banks and asset managers . Equity and bond traders . Hedge funds . Structured products co’ Our investment process is a combination of top-down and bottom- up approach 16 Strategic Asset Allocation Tactical Asset Allocation Portfolio implementation for each client, based on risk profile Fine tuning of the asset allocation, based on the current and expected short terms trends in the markets Selection of specific securities in the portfolio of the client . Selection of recommendations by banks and asset managers . Technical research . Traders view . Rating companies (Clipper, Morning Star, S&P) Equity Bonds Investment committee Portfolio managers
  18. 18. 17 Diversification is key – in different years leaders among asset classes change
  19. 19. 18 Different strategies bring different risk levels Expected yield Liquidity Fixed income Alternative investments Equities Conservative Income Balanced Growth Agressive Expected volatility
  20. 20. 19 Risk profiles and historical performance (index-based)
  21. 21. 20 What types of investments we manage Asset classes . Equities . Bonds . Currencies . Commodities . Precious metals Type of investment . Direct investments . Structured products . Funds Risk management . Hedging strategies . Risk management Investment style . Conservative . Income . Balanced . Growth . Agressive Credit solutions . Lombard lending against portfolios
  22. 22. 21 Lombard lending Client portfolio Goals Cash Equities Fixed income Commodities Alternative investments Lombard loan Lombard loan Liquidity Yield enhancement We help our clients to obtain cheap liquidity against their portfolio, with costs about 1% p.a., depending by amount and bank
  23. 23. 22 Agenda . About FINAPORT . Our services . Investment approach . Operations and Risk management . Our team
  24. 24. 23 Regulation and licenses Finaport in Switzerland is a member of SAAM (Swiss Association of Asset Managers). Alex Rabian, the long-serving chairman of SAAM since 2006, is a senior board member of Finaport. Outside of Switzerland Finaport is regulated by MAS in Singapore (CMS License) and by SFC in Hong Kong (licenses 4 and 9). Finaport Americas Financial Advisers LLC is registered with the SEC. Asset Management Company MRB (100% owned by the Finaport founders) is regulated by the Swiss regulator FINMA.
  25. 25. 24 Internal Compliance and controls We have internal risk management system, internal lawyers and compliance at very high standards. The key market risk factors within the portfolio are closely and actively monitored by the portfolio manager and overseen by the Head of Risk Management. There are clear concentration limits by issuers, sectors and countries and a maximum cap on leverage as specified in our risk management guidelines. The portfolio is checked regularly if the weight of the asset classes is within the defined limits. Banks delegate to us the client identification process during the account opening.
  26. 26. 25 Agenda . About FINAPORT . Our services . Investment approach . Operations and Risk management . Our team
  27. 27. 26 Board members HELLMUT SCHÜMPERLI, FOUNDING PARTNER, CHAIRMAN OF THE GROUP Hellmut Schümperli began his career with a major US brokerage firm. In the seventies, he founded a consulting firm focused on the financial sector in Zurich that opened branches in all major cities of Switzerland. In 1995, he created a new company specialized in strategic consultation for banks and financial institutions as well as information technology focused on private banking. In particular, Hellmut supported banks in the development, modernization and expansion of their private banking sector, both domestic and international. Parallel to this, he initiated the formation and operation of a school specializing in securities in Zurich. ALEX BORISSOV, FOUNDING PARTNER, DIRECTOR OF THE BOARD Alex Borissov worked as a consultant in the representative office of AIG in Moscow. In 1996, he transferred to AIG Private Bank AG, Zurich, assuming responsibility for Private Banking in Central and Eastern Europe as well as general management of the Cyprus Branch. Beginning in 2001, Alex managed the Eastern European division of Credit Suisse in Singapore and established the bank as part of their International Wealth Management Group. In 2004, he joined senior management of Union Bancaire Privée in Zurich, with responsibility for market strategy and development of their entire Eastern European business. ALEX RABIAN, HEAD OF LEGAL & COMPLIANCE, MEMBER OF THE ADMINISTRATIVE BOARD OF FINAPORT (SWITZERLAND) LTD. Alexander Rabian is a partner at the Zurich based law firm of Streichenberg. After graduating from the University of Zurich, he had worked as a legal clerk at public prosecutor's office and the district court of Zurich before being admitted to the bar in 1992. He is specialized in banking and finance laws on a national and international level. Other core fields of his professional activities are corporate and contract law as well criminal law with a focus on financial crimes. He also works as a business mediator and represents his clients in court and before administrative bodies. Since 2006 he is acting chairman of the self-regulatory organization of the Swiss Association of Asset Managers (SAAM).
  28. 28. 27 Investment committee members DR. STEFAN JÄGGI After having worked for the Credit Suisse Group for 11 years in various positions, including head of Portfolio Management for Zürich Region/Eastern Switzerland, he joined Hyposwiss Private Bank, Zürich in 2000 as Chief Investment Officer. When the bank was acquired by Cantonal Bank of St. Gallen in 2003 he was named Chief Investment Officer of the entire Group. He left the bank in 2005 to focus on managing investment funds such as Hyposwiss (Lux) Fund Danube Tiger and the Eastern Eagle Fund. He joined the Finaport Asset Management Team in August 2012 to support the European Team. DANIEL BIERI, HEAD PORTFOLIO MANAGEMENT Daniel Bieri's more than twenty years of experience in asset management include working as a member of the Equity Sales Team of Credit Suisse in London and Zurich. He later worked as a senior portfolio manager for Swiss stock investments for Allianz Insurance Group in Zurich. In 1996, he moved to the Swiss equity division of Swiss Life Asset Management. In January 2005, Daniel took over the management of the equity team of Swiss Life Asset Management, where he was awarded the Swiss Award for the best Swiss Equity Manager. Daniel worked as a director and head of Portfolio Management for a company specializing in hedge funds in Zug, Switzerland before joining Finaport in 2009. DR RAINER A. RUEPPEL, CEO AND MANAGING PARTNER ISPARTNERS Dr. Rueppel co-founded and acts as CEO of IS Partners. Rainer holds a Ph.D. from the Swiss Federal Institute of Technology (Dr. sc. techn. ETH) and worked as an Assistant Professor at the University of California in San Diego (UCSD). In 1989, he created R3 Security Engineering AG which soon became a leading supplier of security solutions for the Swiss banking industry. After selling R3, he worked as an investment advisor and business angel in the venture capital community. Dr. Rueppel published several books and numerous research papers and holds board positions throughout the European financial community.
  29. 29. 28 Investment committee members (cont.) DR. BENO BRUENDLER
  30. 30. 29 Summary: How Finaport differs from its competitors 1) Size – 90%+ of the IAMs are 10 times smaller 2) International presence – offices beyond Switzerland, especially in Asia, enable to have access to investment competence 3) Wide network of custodian banks and jurisdictions – most competitors are confined to Swiss banks 4) Strong investment approach – 95% of competitors do not have CIO and investment committee 5) Advanced Risk Management – compliance procedures have satisfied the most strict banks; the company is regulated in several countries 6) Innovative IT system: proprietary IT tools, enabling consolidation of clients accounts between different banks. 7) Composition of clients` portfolio: because >50% of the clients are from emerging markets, the pressure to deliver performance is higher than for clients in traditional markets like Switzerland 8) Experienced proactive bankers
  31. 31. 30 Attachments
  32. 32. 31 Custodian banks by jurisdiction
  33. 33. 32 Benchmarks for the performance
  34. 34. 33 Performance of Strategy: Balanced EUR (March 2014)
  35. 35. 34 Performance of Strategy: Balanced USD (March 2014)
  36. 36. 35 Legal Disclaimer The material provided herein is for informational purpose only. It does not constitute an offer to sell or solicitation of an offer to buy any interest in alternative investments or any related vehicle. Any such offering will occur only in accordance with the terms and conditions set forth in the offering memorandum pertaining to such funds if and when offered. Investments in alternative investments entail a high degree of financial risk and will be subject to substantial investment restrictions. Investors are strongly urged to review carefully the relevant offering memorandum and other documents pertaining to such funds and discuss any prospective investment therein with their legal and tax advisers prior to investing.