Those who no longer wish to manage their assets themselves are best off delegating the task to an asset manager. In Germany there are numerous financial service providers active in the field of individual asset advice and management. However, in order to find the right company, one should first obtain a few quotes and consider things that will make the selection easier.
What forms of asset management are available?
Many banks offer so-called standardized asset management to their clients. This means that as a client, you have no influence on how your assets are invested in this option. The only vote is on whether assets should be invested more conservatively or more riskily. Asset managers would then take care of the management without the client being involved in the process. In the case of individual asset management, as offered by JRC Capital Management, the customer can specify precise guidelines as to how the assets are to be invested. This type of asset management often requires a very large amount of assets. Investment sums from 500.000 euros is the entry level for individual asset management. However, there are also asset managers who manage portfolios individually even for smaller amounts. In general, the more you want to invest, the greater the influence you have on the investment strategy.
What are the costs of asset management?
In most cases, the manager charges a total flat fee, which is based on the volume of invested assets and risk profile. The more you invest, the lower the fees, which range between 2.0% p.a and 0.8% p.a can move.
How does asset management work?
Every asset manager has his own strategies to invest the money of his customers as profitably as possible. When selecting an asset management company, it is therefore important that the client is informed in detail about the investment strategy. Because if one does not agree with this, one should leave the fingers of it.
Depending on what has been agreed with the asset manager, the latter will invest the client's money in accordance with the risk profile. The investment is made on the capital markets, that is, it can be invested in securities, funds or other stock market products, as these still promise very high returns. Some asset managers, such as JRC Capital Management, also focus on trading foreign currencies.
What distinguishes good asset management?
In principle, you should only let your assets be managed by someone who has experience in the field of asset management and has already had success in this area.
Since asset manager is not a protected job title, one should not be blinded by this expression, because in principle everyone can call himself so. It is therefore important to find out in advance about the asset manager and his or her experience.
If an asset manager does not have a license for financial portfolio management issued by BaFin, he or she is not allowed to manage client portfolios that include securities. You should stay away from such managers and entrust your money in principle only licensed asset managers.
It all depends on the feeling
Leaving the management of one's own assets out of one's hands is not easy for everyone. Therefore, this important task should only be entrusted to someone you trust. If you do not want to invest your own time in managing your investments from now on, you should seek information from various asset managers. A personal meeting is advisable, because there you can immediately find out whether the chemistry is right.