Choosing an asset manager is a crucial step in an investor\u2019s life. This decision is a long-term commitment and involves sensitive issues such as taxation, estate planning, and personal goals that are often difficult to entrust to others.<\/p>\n
Many decisions are made based on a recommendation, a brochure, or a performance promise. What many people don\u2019t realize is that there are several essential criteria to consider before choosing an investment management firm.<\/p>\n
One of the first steps to take is to verify which regulatory regime the company is subject to. In Switzerland, since the Financial Institutions Act (LEFin) went into effect, all asset managers must hold a license, and they are also supervised throughout their operations by a regulatory body approved by FINMA. Financial service providers are also required to comply with the provisions of the Financial Services Act (LSfin<\/a>) and covers several areas: customer information, verification of the suitability of services, management of conflicts of interest, and many others.<\/p>\n Don\u2019t hesitate to ask the company about the license it holds and the regulatory body that oversees it. This will give you a comprehensive understanding of how these obligations are actually implemented in the client-company relationship. <\/span><\/p>\n Every investor prefers a different level of involvement in mind, which allows them to choose between advisory and discretionary management.<\/p>\n Advisory management allows you to retain full control over decisions; that is, the company gathers all the necessary information, analyzes market data, and provides you with personalized recommendations, and you are the one who approves each transaction.<\/p>\n In contrast, delegated or discretionary management allows you to entrust day-to-day decisions to your portfolio manager, within the framework of a mandate that defines your objectives, investment horizon, and risk tolerance in advance.<\/p>\n No single management style is superior to another; it simply comes down to each investor\u2019s preferences and the extent to which they wish to be involved in day-to-day financial decisions regarding their assets. It is therefore important to discuss this with the management company before signing any management agreement.<\/p>\n Wealth is not limited to a stocks portfolio. It can include real estate, equity interests, and even tax issues or estate planning matters. A competent wealth management firm takes a holistic approach to all these elements, including a comprehensive assessment of your assets, wealth and estate planning, an investment strategy, and goes beyond that. A high-quality management service is one that begins with a thorough understanding of your situation and your challenges, in order to offer services that are tailored to and aligned with your wealth management goals.<\/p>\n During an initial discussion, this is one of the most important factors to consider in order to make a better choice of management company.<\/p>\n A management company\u2019s past performance is a good indicator to consider. However, it is not a guarantee. What sets a good partner apart is its regulatory framework, its transparency, and its ability to take your overall situation into account. A financial decision of this magnitude is worth taking the time to compare options and ask the right questions, while prioritizing a relationship based on trust and transparency.<\/p>\n SFMI has been supporting investors since 2007 with a range of services that includes wealth and tax planning, as well as investment advice. Do you have any questions? Please feel free to get in touch with us<\/a> to discuss your plans.<\/p>\n This article was written for informational purposes only and does not constitute financial advice. We recommend that you seek professional advice before making any decisions regarding your finances or investments.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":" Choosing an asset manager is a crucial step in an investor\u2019s life. This decision is a long-term commitment and involves sensitive issues such as taxation, estate planning, and personal goals that are often difficult to entrust to others. Many decisions are made based on a recommendation, a brochure, or a performance promise. What many people… Read More »How to choose an asset manager: 3 non-negotiable criteria<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":7600,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[45],"tags":[184,161,118],"class_list":["post-7603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-management","tag-management-company-en","tag-wealth-management-en"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tManagement style: advisory or delegated<\/b><\/h2>\n
The management company’s comprehensive approach<\/b><\/h2>\n