Independence starts
with independent thinking.
It is only the best solution for our clients which matters.
Our Philosophy.
Independence starts with our thinking. It is only the best solution for our clients which matters. The last two decades have provided us with some lessons to be learned and we strive to avoid these errors. And the efficient frontier of scientific research and knowledge has changed. This should be respected in the best solution.
Lessons We Have Learned.
We strive to avoid common errors:
1
Investment Exposures of Total Wealth
Decisions for the structuring of total wealth suffer from a holistic view including illiquid and liquid investment exposures. Measures for the risk of total wealth and expected returns miss for the illiquid assets. Liquid asset exposures are often chosen with the use of benchmark references even if these do not reflect the desired investment targets of the client.
2
Conflicts of Interest
Due to the lack of independence the choice of solutions and investment products suffers from conflict of interest and incentive misalignments. It is often not the best solution which is chosen but the one which benefits the one giving the advice. Product pushing is a commonly observed practice. Pro-cyclical investments are preferred instead of long term decisions which are in line with the risk tolerance of the client. Return expectations are not clearly managed or simply derived by historic references.
3
Value for Money
From front to back along the investment processes a lot of cost is hidden and not transparent for the client. Not all costs are explicit and all too often apples are compared with oranges. After decisions are taken the ex post argument of “this was not included in our offer” leads to unpleasant surprises.
Independent Thinking.
To generate value for our clients, we focus on:
01 | Embeddedness:
Ensure that decisions on liquid investments (“stay rich”) are embedded from the perspective of total wealth for the client. Return and risk overall wealth stems from the illiquid part (“get rich”) as well as from the liquid part of the assets. The liquid part must also at all times reflect the liquidity needs of the client.
02 | Care & Quality:
The design and setup of the solutions is crucial for the achievement of the investment goals of our clients. We are independent and keep a clear and concise view. On the contrary, true independence is of significant importance. We are not driven by product pushing or cross selling. We also do not compromise quality for speed.
03 | Simplicity & Transparency:
We try to keep solutions as simple as possible. Clear and concise communication, the development of concepts together with the client is a major cornerstone of our work. When we have a conflict of interest we do not take on a mandate.
04 | Safety & Risk:
Our solutions are based on academic research and experience. We do extensive testing under real-time conditions to make sure what we propose works, in calm and easy market conditions but more important in stormy and stressful market environments. The return of capital through careful selection of counterparties and service providers is as important as the return on capital. A holistic view on risk management is essential.