Zero or Negative interest rate charge – what to do?

The situation gets tricky, more and more banks stop subsidizing and charge their clients for holding cash on the account.

Thresholds get reduced, new client segments such as private clients get confronted with the charge. And reading between the lines, further interest rate steps by SNB can not be excluded anymore.

There are solutions to soften the issue, and this without extending the rist pattern substantially.

Many investors have increased their cash portion due to lack of confidence towards many market levels and due to historic low yields on Bonds, many High grade segment even yielding negatively.

The Fixed Income markets have seen a major change since 2008. It needs new and adopted strategies to generate a mostly positive contribution.
Real specialists do have the skills and the time to monitor the markets actively, act and optimise timely if needed.

What to do?

Get in touch with us and listen to our solutions, maybe it fits for you too.
We worked out a solution which has to fulfill the following needs and requests:

  • broadly diversified portfolio with good quality level
  • no currency risks and the least possible interest rate change risk
  • daily liquidity
  • small denominations (to enable smaller clients to participate too)
  • aim to provide mostly positive returns

Solution with many advantages

The above mentioned needs all are taken care, which makes this cash-alternative already better than cash. On top, we

  • can provide a AAA counterparty risk
  • don’t allow leverage in the product
  • offer competitively (no stamp duty, low management fees)
  • monitor the solution and the underlying elements actively and react if needed
  • help you smoothen the threat of negative interest rate charges
  • achieve a professional result by enaging with proven specialists
  • help increasing efficiency of buyers/investors/advisers as it is time consuming and challenging to stay always on top of the market moves

Wealth preservation or retaining purchase power mostly is the expectation towards a Fixed Income portfolio. And this is what our solution is aiming for too. It is a conservatively managed strategy, working with volatilities which are lower than the comparisons. This solution of course is exposed to market movements and interest rated moves as other solutions, however we aim to immunise the impact by choosing complementary strategies.

Driving and managing a Fixed Income portfolio well has become more challenging due to low interest rates, higher volatility and lower liquidity. Hence to engage with proven specialists and insource their skills to manage market liquidity and the risks pays off.

Contact us by phone or mail. We look forward to be in touch with you.

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Convestro AG

Schipfe 2
CH-8001 Zurich

T: +41 43 888 45 45
E: info@convestro.com

M2Wealth AG Announces Change of Address

M2Wealth AG Announces Change of Address

06/10/2016

Zug – SWITZERLAND – M2Wealth AG, a leading FinTech company specialised in wealth management technology such as data aggregation and portfolio management software, announces today that they have moved their Zurich – SWITZERLAND office to a new location in Zug – SWITZERLAND.

The address of the new location is Hinterbergstrasse 18, 6330 – Cham / SWITZERLAND. All other contact information including phone numbers remain the same.

“As M2Wealth International continues to grow, we are excited to expand our footprint in the European region,” said Group Sales Director, Henry Kortt.  “This new facility allows us to better serve the needs of our local customers and employees, and reflects our long term commitment to expanding the European market.”

About M2Wealth International

Founded in 2001, M2Wealth International is a privately held, FinTech company helping Wealth Management firms, Independent Asset Management companies and Family Offices with its fully automated data aggregation engine and AI-powered portfolio management system. The company is headquartered in HONG KONG with regional offices in AUSTRALIA (Melbourne and Sydney), and SWITZERLAND (Zug).

For more information, visit www.m2wealth.com

Are Today’s Wealth Management Tools Able to Cope with Financial Advisors and Investors’ Modern Needs?

Financial institutions worldwide are focusing strongly on High Net Worth Individuals (HNWIs) having determined that these customers consume the greatest portion of high margin services and generate higher profits. The range and capability of investment facilities offered to customers is emerging as a significant competitive differentiation factor between institutions.

Younger professional people are now used to getting the investment information they want, when they want it, and they expect it ‘online’ from the web, mobile devices and social media. At the same time, the aging population of ‘boomers’ is significantly expanding the number of people actively managing investments for future retirement or current income. As more people become involved in their own investments and increase the scope of their portfolios and strategies, they require more sophisticated wealth management tools and a new collaborative relationship with their advisors.

Financial Advisors are too often not listening to or responding to the evolving new requirements of the investors especially the HNWIs and the younger investors. Many providers in the financial services sector are still in denial that a massive change has already occurred and are still operating under the ‘leave it all to us – we know best’ approach of the past.

“Financial Advisors are too often not listening to or responding to the evolving new requirements of the investors especially the HNWIs and the younger investors.”

Systems designed for the Financial Services industry are typically built from the perspective of the Financial Institution to fulfil their own vision of the way they want to provide services to Investors. This has compounded the mismatch problem and has severely limited their ability to react to the changing requirement – the existing systems often lock the institutions into the out-dated practices.

The irony is that in this age of internet, social media and mobile devices, the investor client often has the same access to wealth management information as the Advisor and is aware of broader investment opportunities and strategies than they are being presented with. The investor clients understand their own requirements well and are actually looking for a new ‘collaborative’ relationship with the Advisor that takes into account their own knowledge and preferences, their busy life-style and the online tools they prefer to use.

In addition, another major problem is looming. Many Investors actually deal with multiple asset managers: banks for cash and loans, brokers for stocks and bonds, financial advisors for funds and property, fund managers for pensions, accountants for private lending etc. Portfolios are becoming more active and diversified and ‘statements’ of all shapes and forms are rolling in almost every day making it impossible to keep control over the big picture without resorting to complicated spreadsheets or accounting packages or getting the accountant to manage it all.

These affluent people and their advisors who are usually employed by an asset management firm, wealth management company, single & multi-family offices and bankers constitute the primary audience for sophisticated yet easy to use wealth management systems.

Paul Graham

m2Wealth, CEO

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