tag:blogger.com,1999:blog-91275131242886234662024-03-13T08:42:27.687+00:00Private Banking AdvisoryThe experienced Partner for the Investor with a substantial PortfolioHeinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comBlogger467125tag:blogger.com,1999:blog-9127513124288623466.post-1006921566234660302023-03-14T10:27:00.003+00:002023-03-14T10:29:19.149+00:00How you can protect yourself from Banking Crisis<iframe width="480" height="270" src="https://youtube.com/embed/G96e4OGKM4A" frameborder="0"></iframe>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-20473467290610229312023-03-14T09:04:00.000+00:002023-03-14T09:04:01.980+00:00Do not rely on Regulation!<p>Regulators are beholden to to politicians who in turn are beholden to the industries they are supposed to regulate. Banking regulations were loosened substantially in the United States towards the end of the last decade. The current crisis of confidence is to a large extent due to wrong policies pursued by regulators and the Federal Reserve Bank. The situation in the Eurozone and the UK is not much better. </p><p>Lesson for all Investors: diversify your banking relationship and if possible invest in assets that are not dependent on a healthy bank.</p><p>Private Banking Advisory is happy to analyse risks contained in your investment holdings.</p><p><a href="https://finance.yahoo.com/news/how-silicon-valley-bank-skirted-washingtons-toughest-banking-rules-215501909.html">How Silicon Valley Bank skirted Washington's toughest banking rules</a><br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-50685505247272059652022-11-18T13:19:00.006+00:002022-11-18T13:21:45.294+00:00Is there a difference between a Painting and a Crypto Token?<p>Don't misunderstand me. I went to any number of Art Museums and Exhibitions. Love to see great paintings of all ages. But looking at the latest Mondrian painting that just got auctioned for $US 51 Million I start to wonder.</p><p>What is really the difference between a painting like this one and a crypto token like Bitcoin? Why is the world so obsessed with originals when any decent art school graduate could replicate the Mondrian quite easily?</p><p>I don't have the answer, only the question. Maybe you readers make some comment that helps me understand this better.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpsW-P1qelzi81IxuqLJFGponaETae9lX_mioA4d4GM8bwbjSk2ZU_lAbITmixgS5LMsV-TuUpNVxTfMJXz2t9qsh46f6C9jdKQ4BINC_1ecuBYQLF32UaK6tPxr8J2zAkjpOXgp0Qa8rOtgMw2VSa4hho8KwxvoA9Td4-ZJ6OB6PrKoaX-8zvkiw2/s976/Mondrian%20Composition%20No%20II.webp" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="549" data-original-width="976" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpsW-P1qelzi81IxuqLJFGponaETae9lX_mioA4d4GM8bwbjSk2ZU_lAbITmixgS5LMsV-TuUpNVxTfMJXz2t9qsh46f6C9jdKQ4BINC_1ecuBYQLF32UaK6tPxr8J2zAkjpOXgp0Qa8rOtgMw2VSa4hho8KwxvoA9Td4-ZJ6OB6PrKoaX-8zvkiw2/s320/Mondrian%20Composition%20No%20II.webp" width="320" /></a></div><br /><p><br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-1827712901248268642022-09-30T10:28:00.003+01:002022-09-30T10:29:09.298+01:00Beware of Financial Engineering!<p></p><p class="MsoNormal"><span style="background: white; color: black;">When Times are
good it is easy to forget Warren Buffett's famous dictum: "Derivatives are
weapons of mass destruction". Recent turmoil in the UK Gilts market
demonstrated that Financial Engineering (better called alchemy) has its
limitations. And how much did the Pension trustees really understand when LDI
was proposed as the magic solution? It just shows that the Quality of your
Advisers is crucial for Investment success.</span><o:p></o:p></p><br /><p></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-17387165820775442742022-08-10T10:08:00.004+01:002022-08-10T10:08:55.340+01:00Don't get suckered by 'Celebrities' pushing NFTs<p> <a href="https://www.buzzfeednews.com/article/katienotopoulos/celebrities-warning-letters-nft-ftc?utm_source=dynamic&utm_campaign=bfsharetwitter">17 Celebrities Just Got Warning Letters About Shilling NFTs</a></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-43503048203114462472022-05-01T10:00:00.003+01:002022-05-01T10:04:38.544+01:00No reason to panic yet!<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3DqhRh1Pe0dgHbyJMiG-wHSENKGjlFIuEcz1Uz57WJEOcT0ttKbHmQjGCQkLXqNNIxIaf7zQTIvmKwoc7CW7741AFweXq5N63KOVjf3z5E0YGP3UTi_qN-9bQ2TNvB6t3UBuE3eERAvPTTtA59i4rOnrBXALxhlkSKFXFhCxH-XxcIW_9teGFO1oi/s1193/Screenshot%20(33).png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="630" data-original-width="1193" height="306" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3DqhRh1Pe0dgHbyJMiG-wHSENKGjlFIuEcz1Uz57WJEOcT0ttKbHmQjGCQkLXqNNIxIaf7zQTIvmKwoc7CW7741AFweXq5N63KOVjf3z5E0YGP3UTi_qN-9bQ2TNvB6t3UBuE3eERAvPTTtA59i4rOnrBXALxhlkSKFXFhCxH-XxcIW_9teGFO1oi/w580-h306/Screenshot%20(33).png" width="580" /></a></div><br />No reason to panic yet. While the short-term charts may appear to be horrible the long-term trend is still intact. This is a logarithmic chart of the S&P 500 and it shows that is still well within the uptrend. On the other hand, you can also see that there were quite long multi-year periods in the 1970s and between 2000 and 2012 where the Index moved sideways and the only return investors made derived from dividends.<p></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-43505363950033186422022-04-18T14:32:00.006+01:002022-05-01T09:53:01.695+01:00The Importance of keeping Fees low in Low-Return Investment Era<p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='563' height='468' src='https://www.blogger.com/video.g?token=AD6v5dzvTJ4X85YlkQGqV__Q_dJJQOTEXqGD88M1FU4CBAa0E3j2e73ZnFiBGiFX5n819RKXyFgFyrQFKPwZ4Vcu9Q' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /> <p></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-11600319282746809022021-08-27T09:02:00.006+01:002021-08-27T09:04:01.447+01:00Crypto "Currencies" - read this before you invest<p>Make sure you understand these terms if you really think you must not miss out on the crypto craze/mania: do you know what they mean? Hard Fork, chain activity, gas fees, burning mechanism, EIP-1559 upgrade, deposit contract address, ledger device, staking contract, (crypto) wallet, proof-of-work vs proof-of-stake technology.<br /><a href="https://finance.yahoo.com/news/london-burning-100-000-eth-164002089.html">London burning! 100,000 ETH up in smoke after Ethereum upgrade</a><br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-62217755705585841202021-07-04T10:49:00.005+01:002021-07-04T10:50:24.581+01:00Three Certainties in Life - Tax, Death and Fund Fees<p>Are you aware of the tremendous impact that fund fees (and fees for Private Banking or Independent Financial Advisers) have on the long-term performance of your Investments?<br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-85000415564542797372021-07-02T09:36:00.004+01:002021-07-02T09:36:14.907+01:00How to measure the performance of your Financial Adviser<p>Most ordinary people - and I include the Rich and SuperRich in this category - are not really trained or qualified to manage their Financial Affairs, let alone their Investments. One would not expect them to as we all lead busy lives with family, work and other - maybe more interesting hobbies than checking on your portfolio every day.</p><p>As Financial Advisers handle the Investment affairs of the majority of people it is essential that their performance is checked in a professional and unbiased way.<br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-38167040074358956722021-06-21T09:06:00.001+01:002021-06-21T09:06:05.377+01:00What is a 'Leading Wealth Manager?'<p>HSBC aims to be Asia's leading wealth manager in five years. I tell you what to make of this announcement.<br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-40731913315277265992020-10-12T15:28:00.003+01:002020-10-12T15:30:32.872+01:00Never forget to check the fees on Active Equity Funds<p>Stable returns, but high costs. This headline caught our attention in today's edition of a German newspaper featuring a large Fidelity Fund focusing on German Equties. So when we checked Morningstar it said that the ongoing charge was a whopping 1.92% PER ANNUM<br /><br />When you consider that this means that total fees accruing to Fidelity on this fund is around €20 Million (given the total fund size of just over 1000 Million) one is left with the question: is this amount really justified when at most 2 fund managers and a few analysts are needed to run this fund? Pay them a generous €300000 each and allow some ancillary expenses and one would have to assume that fees of 3-4 Million would be more than enough.</p><p>Delicate detail: as this fee does not explicitly state it is the TER - Total Expense Ratio - it could well be that the unlucky investor is hit with more fees.</p><p>And on top of that many - if not most investors - are charged on average an additional 1% by the Asset Manager or Private Banker that allocates their savings to that fund.</p><p>So does the performance justify investment in such an 'active' fund? Yes and No, not if you compare performance sinc 1990, yes if you just look at the past 10 years. <br /><br />Does the performance justify high fees? As always, it depends. So speak to an independent analyst or consultant who has no financial interest in your decision and be aware that high charges are a serious drag on performance.<br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-20671586776961320942020-09-27T11:16:00.001+01:002020-09-27T11:21:45.338+01:00Given interest rates are near zero - should you pay for an 'Active Manager'?<p class="MsoNormal">Given that most Private Client Fund Managers charge fees of
at least one percent and that the funds that many put their client's money in
charge another 1.5 percent on average (if you are lucky) the total cost of fund
management will be at least in the region of 2.5 percent PER ANNUM!<br />And you
have no guarantee that you will have a positive performance, the costs are
incurred whichever result your fund manager produces. Nice work if you can get
it! <br />Investing in Bonds used to be recommended in most balanced portfolios but given the low rates and risk of capital losses once interest rates rise again it might be better to park a good portion of your portfolio in cash - even if it gives you no return. <br />But at least you do not pay any fees on that part of your money, and have no risk of loss. But do not leave it with your fund manager(s) as they will charge a management fee even if money is just parked in cash as well.<br />So at the very least investors should try to find a truly independent
Private Banking Advisory to avoid the most costly options.</p>
Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-42639709622459554102020-08-11T17:18:00.002+01:002020-08-11T17:18:29.812+01:00Be wary of SPARCs and Blank Cheque Companies<p>This latest investment fad is calculated to capitalise on the public's desperate search for yield and will primarily suit the promoters. So look out for any of these 'investments' that appear in your portfolio and question the financial adviser or private banker who selected them for the reasoning behind their decision.</p><p><a href="https://www.ft.com/content/1681c57d-e64d-4f58-b099-8885e85a708e">The Spac race: Wall St banks jostle to get in on hot new trend</a><br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-13671972041094776262020-08-07T11:18:00.008+01:002020-08-07T11:35:24.726+01:00Another Ponzi Schemes- 'only' $400 Mio go missing<p>Never invest on the word of a good friend or well-regarded person (in politics, media, business) without getting a second opinion from an independent professional who has no stake in the proposal - be it a fee or being involved in the investment in any form or shape.</p><p><a href="https://www.ai-cio.com/news/san-diego-magnate-masterminded-400-million-liquor-license-scam/">San Diego Magnate Masterminded $400 Million Liquor License Scam</a></p><p>and another Scam, this one 'only' for $18.5 Million:<br /></p><p> <a href="https://www.ai-cio.com/news/private-investigator-tech-startup-charged-18-5-million-fraud/">Private Investigator Tech Startup Charged in $18.5 Million Fraud</a></p><p>this one is 'only' for $25 Million:<br /></p><p><a href="https://www.ai-cio.com/news/cryptocurrency-firm-co-founder-pleads-guilty-coin-offering-fraud/">Cryptocurrency Firm Co-Founder Pleads Guilty to Coin Offering Fraud</a> </p><p>and another $60 Million changed hands: <br /></p><p><a href="https://www.ai-cio.com/news/investment-adviser-cio-charged-running-ponzi-like-scheme/">Investment Adviser CIO Charged with Running Ponzi-Like Scheme</a><br /></p>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-25408851886228844962020-07-24T10:56:00.000+01:002020-07-24T10:56:13.489+01:0060/40 Balanced Portfolio in times of Zero Interest RatesThe advocates of the 60/40 balanced portfolio forget that the 40% that is invested in bonds poses a great risk for no return. Given where bond yields (if you want to call the puny returns on offer a 'yield') are the only way that bond prices will ever move to a significant extent is DOWN. That would mean losses on the bond portion of the portfolio. Much better to stay in cash (or pull out the money from the bank if ever the governments impose negative interest rates).<br />
<a href="https://www.marketwatch.com/story/vanguard-comes-to-defense-of-the-6040-portfolio-as-it-forecasts-stock-market-returns-for-the-next-decade-2020-07-23?mod=home-page">Vanguard defends 60/40 Portfolio</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-82212130581571193452020-03-27T12:27:00.001+00:002020-03-27T12:27:05.239+00:00Another slap on the wrist of UBS<h1 class="lede-text-v2__hed">
<a href="http://UBS Fined $8.2 Million by Singapore for Misconduct by Advisers">UBS Fined $8.2 Million by Singapore for Misconduct by Advisers</a></h1>
Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-486000704299029932019-11-14T18:51:00.004+00:002019-11-14T18:57:20.306+00:00Fees in an area of Zero Interest Rates£1,720 smackers for 'advice' - that is 1.72% BEFORE you even make a penny on your £100,000. That is the sad reality in today's Private Banking business. And there is NO GUARANTEE that you will make any money - the fee is payable whether your portfolio has a positive or negative return. Nice money if you can get it! Ask for INDEPENDENT advice before signing on the dotted line!<br />
<blockquote class="tr_bq">
<i>"Schroders Personal Wealth gave the example of a client with an
investment of £100,000 to illustrate the fees. Their total annual costs
will be around 137bps (see table below), or 172bps if they use a Discretionary Fund Manager"</i></blockquote>
Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-57444736744648896242019-11-05T08:30:00.000+00:002019-11-05T08:30:02.186+00:00Fund of Funds - nice but how much do they cost?If they charge a separate fee on top of underlying funds you basically pay two people to do a job that one of them should do. Or let them split the fee, which should not be out of line with the regular fund fee. Take independent advice if you are not sure what level of fee can be justified.<br />
<a href="https://citywireselector.com/news/cpr-launches-smart-trends-fund-to-capture-range-of-themes/a1289881?utm_campaign=latest+news&utm_source=selector&utm_medium=twitter&utm_content=CPR+launches+smart+trends+fund+to+capture+range+of+themes">New Fund of Fund launched</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-53888874516204927122019-10-14T08:34:00.000+01:002019-10-14T08:34:55.208+01:00Don't take my free holiday away from me!That is the cri de coeur that goes out from the pathetic Financial Salesmen (aka Financial Advisers) at the St James Partnership. At least investors know that they are not financing yachts but this still makes crystal clear where their priorities lie. It demonstrates that all investors should take independent advise about fees, charges, risks and performance comparisons before committing any funds to a fund manager or Private Banker.<br />
<a href="https://citywire.co.uk/wealth-manager/news/sjp-advisers-threaten-revolt-over-lost-holiday-rewards-perks/a1280346?ref=wealth-manager-new-latest-news-test1-list">St James Place Advisers threaten revolt over lost holiday rewards perks</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-744151906985706532019-10-11T10:42:00.000+01:002019-10-11T10:42:48.939+01:00Should you ever pay an initial fee?Initial Fees charged by Financial Advisers or other Fund Managers/Private Banks can take a hefty chunk out of you savings. They vary but in some cases or countries they can reach nearly 5 per cent of your capital. In addition you will then be charged an ongoing annual fee by the adviser or the custodian of your investments.<br />
Investors should take independent advice before accepting any terms and conditions. A small one off consulting fee may well save you thousands over a period of time.Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-40750931309278240582019-10-05T15:17:00.000+01:002019-10-05T15:17:19.271+01:00Happy to pay a Wealth Tax - to your Financial Adviser?This calculator will do the sums for you<br />
<br />
<a href="https://larrybates.ca/t-rex-score/">https://larrybates.ca/t-rex-score/</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-45006100230481881242019-08-20T08:10:00.001+01:002019-08-20T08:10:19.501+01:00Megatrend Funds - is this a clear strategy?Bankinter jumps on the "Megatrend" train, launches a fund that seems to be able to invest in a mishmash of asset classes. "Fund invests above 60% in companies without any constraints in
terms of market capitalisation, sectors, currencies or geographies.The
remaining part of the portfolio will be invested in public and private
fixed income instruments.The fund's portfolio could also have exposure to other asset classes
or factors including commodities, credit risk, volatility, interest
rates, inflation and currencies."<br />
So what is the strategy? And how will the performance be measured as there is no clear benchmark against which such an asset mix can be compared.<br />
<a href="https://www.investmenteurope.net/news/4004208/bankinter-joins-spain-megatrends-boom-fund">Investment Europe</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-72304413943530541122019-08-05T09:45:00.002+01:002019-08-05T09:48:55.984+01:00Questions to ask before you buy any bondI have a somewhat critical view of rating agencies - they should not be paid by issuers as this could create a conflict of interest. But the regulatory authorities seem to condone this practice.<br />
But if you as a non-professional investor/saver are offered the opportunity to invest in a bond you should ask some basic questions before taking the plunge.<br />
Now with interest rates globally at rock-bottom bonds that offer high interest rates may at first glance look attractive. So ask the following questions:<br />
<br />
Who is promoting the bonds? Does the broker/investment bank have skin in the game?<br />
Who is issuing the bonds? Is the issuer guaranteeing the bonds? How long has he been in the business? What is their track record?<br />
If there is collateral or any guarantee - what is behind? Is there a good margin of safety?<br />
What is the maturity of the bond? You may not be able to get your money out before<br />
Especially if there might not be a liquid market in the bonds<br />
Is the bond rated by one of the large rating agencies? As mentioned above, they do have their problems but no rating would be a serious red flag<br />
How high are the fees charged by the issuing/placing agents?<br />
If a Financial Adviser recommends a bond, is he charging a commission from you or the issuer?<br />
<br />
Please be aware that this site gives no advice on specific investments but is intended to offer general guidelines for educational purposes. You or your Adviser may have a look at this new offering in order to see how the above suggestions can be applied before you make any investment decision of a similar kind. <br />
<br />
A current example of a bond issue would be Urban Exposure Finance Plc 6.50% Secured Notes due 13 August 2026<br />
<a href="https://www.sharesmagazine.co.uk/news/shares/urban-exposure-launches-6-5-sterling-bond-as-income-investors-offered-chance-to-fund-new-builds">Urban Exposure launches Sterling Bond</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.comtag:blogger.com,1999:blog-9127513124288623466.post-48844115470572077882019-07-18T08:14:00.000+01:002019-07-18T08:14:01.559+01:00Fintech Bubblemania is back with a vengeanceShould Joe Public be concerned about these fantasy games that are played
with 'valuations'? $3.5 bio for an operation that has a pitiful balance
sheet of 150 Mio as per last data I could find. Even if double that it
is still ridiculous. And what is the business 'model'? Offering an app
and collect deposits? But that is the easy part in banking, if all they
then can do is lending it to the wholesale market, mainly other banks,
where is the added value? and how much margin is in this 'model'? And
the investors that put money into this - and similar start ups - whose
money do they look after? It is not their own money but the money that
investors - the Joe Public again - have entrusted to them. So any losses
are not suffered by the promoters/insiders. The media should be
critical and not write adulating reports. And the regulators? Better not
say too much, bad for my blood pressure.<br /><a href="https://www.ft.com/content/4d31c764-a8c6-11e9-984c-fac8325aaa04#comments-anchor">On line Bank N26 valued at $3.6 Bio</a>Heinz Geyerhttp://www.blogger.com/profile/18074243078564794000noreply@blogger.com