Let us not delude ourselves that an individually managed portfolio brings more benefit to the client than a well-built strategy in the form of a single fund of qualified investors. In order for the manager to really approach the portfolio management individually, such a portfolio would have to be in the size of hundreds millions of crowns. Even such a portfolio, however, takes advantage of the bank’s view of the composition of the portfolio and must comply with a number of constraints.
Investors are looking for simple, cost-effective and tax-efficient solutions, and so the Raiffeisen Investment Company (RIS) solution for Private Banking clients of Raiffeisenbank – Friedrich Wilhelm Raiffeisen (FWR) can suit them. It now offers them four comprehensive investment strategies named by share of risk asssets.
Each strategy contains a different equity / bond share, with the following strategies to choose from, based on the proportion of risk assets in the fund:
- FWR Strategy 15
- FWR Strategy 30
- FWR Strategy 60
- FWR Strategy MIX (combination of the two previous ones, eg 15 + 60).
FWR Strategy takes the form of Qualified Investor Funds (FKIs), which are increasingly popular among Private Banking clients. The minimum investment in the fund is 5 million crowns in all cases, followed by at least one million crowns. Management fees range from 0.9 to 1.2 percent per year.
“Currently, there is growing interest in strategic funds, complex active products that cover the profile of a conservative, balanced or dynamic client, as well as passive products such as ETF funds. In both of these solutions, the investor buys an already completed investment strategy and does not have to deal with the selection of specific instruments, ”said Jaromír Sladkovský, CEO of Raiffeisen Investment Company.
After three years of holding the investment, the czech investor is exempt from income tax and does not have to worry about anything. Liquidity is ensured to the client at any time, the strategy is active, reacts to the economic cycle and there is a regional and sectoral rotation. As in the case of an individual portfolio, the investor does not have to deal with annual tax documents. At the same time, in the case of a loan as opposed to FKI securities, it is better graspable for the bank, so you have easier access to the loan if needed.