The role of an asset manager

For many individuals, using one of Switzerland’s registered Asset Management companies (such as Strategic Capital Portfolio Partners AG, Encore, SAM or Everest as an example) might be extremely advantageous. The role of a good asset manager is not only to introduce a client to establish a banking relationship with a banking group within Switzerland for tax reasons but also (and more importantly) to oversee a full range of banking and investment services.

These services may include:

Introduction to ‘Triple A’ rated guaranteed investment products possibly offering a greater balance to a portfolio.

Seeking and advising on the best balance for a portfolio, designing placement within a specific client's needs, with access to a diversified field of banks and fund managers.

Once funds have been placed, the Asset Manager monitors the development and/or evolution of the client's portfolio with appropriate advice regarding its performance.

Your Asset Manager will be 'pro-active' as an intermediary between the client and the banks and fund managers.

Another service of growing importance in today’s financial world is the role of the Asset Manager acting in its client's best interests should any disputes arise between the client and the bank or any another third party.

The very best Asset Managers will also have a range of exclusive ‘in-house’ opportunities that may well not be found through any other institution.

In Switzerland, a bank often prefers an Asset manager to act as intermediary because;

Should any dispute occur regarding alleged money laundering, then the bank is not directly libel, they are more easily able to fall back on the asset managers due diligence of that client.

An asset manager provides a steady stream of qualified investors to their door.

In certain areas where the bank is active in seeking new clients, they are restricted by local laws in the methods they can employ to advertise their services. By working through an asset manager, who is unimpeded by the banking restrictions, the bank can draw more clients to its door.

What is the relationship with Gold and Private equity?

The price of Gold has smashed through the $800 per ounce level and now seems set on achieving $850 per ounce before year-end. That is where we stand today, but who was it that saw the meteoric rise of this precious metal about to happen back when it was languishing below $300 per ounce? Of Switzerland’s many private equity groups, several groups can claim they saw it coming and made early moves to ‘ride the wave.’

In 2003 Strategic Capital Portfolio Partners AG of Zurich came out and said they were seeking and reviewing many junior mining companies with potential, while Investec was actively aiding Harmony with their acquisition of Avmin and its 42.2% stake in Avgold. Household names have also been active: CSFB Private Equity, a unit of Swiss banking behemoth Credit Suisse Group, had been turning its attention to mid-cap gold companies as early as the year 2000.

The ability to see the next "big thing" is essentially what private equity groups look for.All investors want to be part of that next big thing. Some of these private equity groups actively seek new investors while other are more select and will only allow a limited number of new "members".

In forthcoming articles we will seek to discover the secrets of some of Switzerland’s foresighted Private Equity groups who seem to have the power of looking into tomorrow.

To be continued....