Although it will probably only come into force in 2019 and not in 2018 as planned, the LSFin will have many consequences for asset management professionals, particularly independent managers and smaller private banks.
Although it will probably only come into force in 2019 and not in 2018 as planned, the LSFin will have many consequences for asset management professionals, in particular independent asset managers and smaller private banks.
In particular, financial intermediaries managing portfolios will have to formalize and document their investment process and apply their investment policy in practice in the accounts they manage. Recommendations and transactions will have to be justified.
But a small private bank, an independent asset manager or a family office does not always have a person in their team who is able to assume the role of Chief Investment Officer (CIO). Recruiting an experienced in-house CIO is difficult and does not always make economic sense.
The new Geneva-based investment advisory firm Premyss fills this gap by offering professional intermediaries the opportunity to outsource the CIO activity. This not only ensures a quick compliance, but above all allows to benefit from the expertise of an experienced specialist at an advantageous cost.
External CIO office
The first step is to define the investment policy, i.e. the objectives and management principles, governance, investment rules and different risk profiles. The investment policy is tailor-made to match the DNA and values of each institution.
The next phase is the implementation and management of the investment policy. Thus, on the basis of macro-economic studies and market analyses, Premyss prepares the Investment Committee meetings, whose decisions are then formalized and translated into allocation grids and model portfolios. Management dashboards are used to verify the correct application of decisions and the soundness of decisions. Finally, the decisions are communicated and explained to the relationship managers, so that they can better convey the message to their clients.
Because the needs of each asset management company or private bank are different, Premyss' external CIO office offers different degrees of involvement. The client can choose to delegate the entire investment process, share the responsibilities or make all decisions themselves based on the recommendations received.
Portfolio audit
The new law also provides for the establishment of independent mediation bodies recognized by the State, in cases where an impartial expertise is required, for example to evaluate the management carried out. Premyss will register with these bodies as a recognized expert, in order to offer a wide range of in-depth portfolio analyses: performance and benchmarking, risk, adequacy of asset allocation and instruments used, liquidity, transactions carried out, costs...