Why should I have BPM manage my assets?
Asset holders who contact BPM - Berlin Portfolio Management GmbH - are usually interested in significantly optimising their previous investment in several areas. It is often the desire for more flexible remuneration models that leads to reorientation. And thirdly, it is often the desire for dynamic and more creative portfolio elements and strategies that lead to a concrete interest in discussions.
In a coordinated and multi-level process, we combine effective portfolio components that significantly increase the long-term prospects of success, optimise costs and adapt the overall risk to the client's true risk capacity and requirements.
What sets independent asset managers apart from banks?
The sole objective of independent asset managers is to structure and manage assets in accordance with the requirements and wishes of the asset holders. They are therefore dependent for their livelihoods on the success of their management services. They are not restricted by sales targets or centrally specified commission targets. Independent asset managers gear all their actions to the interests of the client. Trust and reliability are at the core of their work.
How much money do I need to have to use professional asset management services?
BPM offers you successful distribution, opportunity and value-based management solutions, making consistent use of low-cost institutional asset classes with investable assets of EUR 500,000 or above.
Is it "safe" to work with independent asset managers?
In Germany independent asset management (officially: financial portfolio management) is a licensed financial service which is closely monitored.
This licence to operate a financial services institution is granted on the basis of the German Banking Act (KWG) after intense scrutiny by Deutsche Bundesbank and the Federal Financial Supervisory Authority (BaFin). Only licensed and continuously monitored financial services institutions with verified employees who act with integrity may engage in financial portfolio management.
Typically, asset managers act on the basis of a limited power of attorney from the client. This authorises them to dispose over a bank account and custodian account with the chosen custodian bank, but not to unauthorised withdrawals or transfers of assets.
The custodian bank is responsible for the safekeeping of assets and the proper settlement of all transactions. Please also enquire about the advantages of the EU deposit guarantee scheme, additional protection schemes of several groups of institutions and state guarantees for bank liabilities.
Can I afford an independent asset manager?
Yes you can. A professional asset manager will, similarly to a lawyer or tax consultant, charge a performance and cost-based fee for the service. Clients of BPM can flexibly choose between fixed and performance-based fee options.
Compared to bank conditions, asset managers are often much cheaper and more transparent. There are many reasons for this, the most important of which are the excellent conditions BPM has negotiated with settlement banks for its clients and the complete absence of hidden commissions.
Can I simply transfer my existing custodial account to you?
Yes, this is quite easy to do. You do not have to visit or contact your current bank directly. Qualified independent asset managers, including BPM, will assist you with the necessary formalities. Custodian accounts can also be transferred across borders.
In principle, it is also possible to take over an existing mandate from the previous bank. However, this is not really recommended as the best and most cost-effective solution.
Can asset managers offer special terms with custodian banks?
Yes, they can. Since the custodian bank only provides a few services here, its fees can be relatively low. For banks asset managers are sought-after partners. The special terms they receive are passed on directly to clients. As a rule, there are relevant agreements with various custodian banks to match the bank to the requirements of the client.
How can I keep abreast of the status of my assets on an ongoing basis?
As an asset holder, you will be promptly notified in writing or by email about every transaction completed by your asset manager. You can also set up a secure "view-only" access to your account and custodian account online. Your asset manager will also be able to provide you with additional information using a broad range of communication channels. Clients of BPM prefer to use electronic information solutions.
Where can I see your references?
The approval letter from the Federal Financial Supervisory Authority (BaFin) licensing BPM to provide financial portfolio management services can be made available to you at any time. You can also review the registration, annual accounts and auditor's certificates online. Furthermore, successful and experienced asset managers always have clients who are willing to share their experience and recommend them.
Membership of a recognised professional association (e.g. Association of Independent Asset Managers (VuV)) indicates a good reputation and an accepted code of ethics by members of the association. BPM has been a member of this association since its foundation.
You should also review and request the CVs of the relevant asset managers, including their career history and work experience.
You can also contact employees of the custodian banks who will be happy to provide you with information about the asset managers, since they know them very well from their daily service activities.
Is it easy to issue an asset management mandate?
Yes. You can discuss and sign the relevant management contract at the time you open your account/custodian account. Key points of the contract, such as the investment guidelines, the maximum allocation of the individual asset classes, the desired benchmarks, the total costs or even the loss threshold, are discussed in detail and agreed individually.
What happens if the asset manager or the service bank ceases to operate for what-ever reason?
You, as an asset holder, retain control of your assets at all times. You may modify the mandate at any time or revoke the limited power of attorney, transfer the assets at any time or otherwise dispose of them. Even in the unlikely event that the asset manager cannot be reached, your ability to act is guaranteed at all times. In the event of a bank default, the assets in your custodian account are also protected, as your assets are not liable for the bank's liabilities.
Why are investors increasingly opting for "independent asset management" as the logical alternative?
The perception and the knowledge about the range of services offered by independent asset managers vary greatly across different countries. What is common in the US and Switzerland, for example, was still in its infancy in other countries until just a few years ago.
For many private clients, families, entrepreneurs, heirs, foundations and companies, the engagement of a personal and licensed asset manager has become common practice. In an increasingly complex world, the trustworthiness and the independence of the client's "own" financial specialists have become key criteria for decisions and success.