Based in Liechtenstein, Incrementum AG offers wealth management services for private clients, as well as a range of investment funds and investment solutions.
To hear about Incrementum’s wealth management offerings and services, Finance Monthly caught up with the company’s CEO and Co-founder Stefan M. Kremeth.
What inspired you to found Incrementum?
Our objective when founding Incrementum AG was to offer first-class services to private clients and investment fund investors at fully transparent and competitive prices and to work with an inspiring team, in a fun environment.
What would you say are the key issues that you assist clients with regarding asset management?
Our investment team is very interested in and has a profound understanding of monetary history, combined with out-of-the-box reasoning and prudent, fundamental financial research, purposely avoiding daily chatter and noise. This offers a distinct skillset that has proven to be utterly valuable for our private clients and investment fund investors alike.
What strategies do you implement to ensure that your clients’ goals and objectives are achieved?
We only offer cashflow generation and capital preservation strategies. Participation in listed companies is very tangible to us and equities therefore belong to our core investments. We are building truly customised client portfolios according to our clients’ requirements, needs and willingness to accept risk. We are long-term investors and we invest solely in equities of listed companies with a proven track record of producing net-free cashflows over years, happy to share those cashflows, at least partially, with investors in the form of dividends and/or capital reductions. On the other hand, and after many years of extraordinary money supply and ultra-low interest rates, we do not invest in government bonds, as we do not feel comfortable with the current risk reward profile offered by them. Large-scale monetary policies are difficult to judge and while we are not entirely certain that the increase in global debt will be sustainable, we are humble enough to recognise that so far, the leading central banks seem to have dealt with the 2007/2008 financial crisis rather well. Either way, at Incrementum, we see money only as a means for facilitating global trade, consumption, potentially storing short-term value and thus - as a lubricant for the global economy.
How important is a maintenance strategy for optimising asset value?
At Incrementum, we very much believe in an active portfolio management approach. We cut back positions that have reached our price targets and we are interested in buying into companies that have sound underlying business models, but have missed their targets for a quarter or two. We are very patient investors.
What are your hopes for the future of Incrementum?
We are happy with what we have achieved so far but are constantly striving for innovative growth. Last year, we entered a new business field by setting up our Crypto Research report, which swiftly became the most read research report in the crypto currency field.
Website: https://www.incrementum.li/
This month Finance Monthly had the privilege to speak to Gianluigi Montagner - the Chief Executive Officer of Malta-based Framont & Partners Management Ltd. In his interview with us Gianluigi tells us all about the services that the company offers, their business strategy and priorities towards their clients, while also providing a rich insight into the investment services sector in Malta.
How are most financial investments structured in Malta?
Malta holds a good reputation as a jurisdiction for smaller and medium financial companies and start-ups. Thus, the fund sector attracts asset management activities all around Europe, being a cost-effective and efficient solution with respect to other jurisdictions that are traditionally experienced in the same field but less appealing from this perspective.
Malta has been able to develop numerous investment funds, which is the main reason why we opted for a full AIF and UCITS licence as fund managers, both targeting professional and retail investors. Framont can offer even the traditional investment services, since we offer services of portfolio management, as well as advisory.
What are the main considerations that need to be followed when providing investment plans to your clients?
The main considerations to be followed always relate to the risk management and the investment objectives. This can either be in terms of target or timeline.
It is imperative to help the clients understand that all investment plans involve some degree of risk, as the reward of taking risk results to the potential for a greater investment return.
Can you outline the process Framont & Partners go through to assess your clients’ current financial situation and assist them with identifying financial goals and concerns?
We perceive it as imperative to hold a frequent and close relationship with each client we have, in order to update their characteristics, understands their needs while trying our best to accommodate them, as well as their personal financial positions. Therefore, this successfully allows us to assist the clients and reach their goals.
Since we are in close contact with our customers and form part of the network in the wealth management markets, trends are identified at an early stage. This is the main reason for offering solutions that are customised for the customers’ needs.
How do you assess levels of risks for investment strategies? How can you accurately assess the level of risk that an individual is prepared to accept?
In order to assess the risk levels, we make use of internal models that are drafted to combine risk profiles and goals. The risk manager assists us on a daily basis and we make sure clients are well informed about the investments in their portfolios by providing regular statements and information upon request at any time.
What strategies do you implement to ensure that your clients’ goals and objectives are achieved?
We always make sure to understand and acknowledge our client’s goals and objectives. Therefore, we periodically review the financial situation of the client and match such strategies and goals. Our team is always available for any needs or questions that the clients or any potential clients might have.
As CEO, how do you ensure you are directing the company in the correct direction? How do you advise your team to make the correct decisions for the company alongside clients?
As the CEO, I make sure that the company’s direction is assessed very often, in terms of competencies as internal goals. We also check closely the reference market in order to promptly meet together with the regulation requirements and the clients’ needs. Turnover may be possible but generally, the employees on board portray a desire to remain with the company. I think this is a signal of a positive and growing environment for the employees and the partners.
About:
Gianluigi Montagner is the Chief Executive Officer of Malta-based Framont & Partners Management Ltd. It is one of the main players for wealth management market and a well-developed and growing reality in the Maltese Financial marketplace. The Company holds a Category 2 Investment Services Licence, allowing a wide variety of products and services, including outsourcing services, structuring, coordination of fund launches, investor relations, investment management, as well as distribution services for investment funds from Malta.
Thanks to the wide ranging financial background of the Company’s founders and the support of a highly specialised team with a deep knowledge of today’s constantly evolving markets, Framont places particular emphasis on stability and flexibility. Its solid structure means that the company offers personalised investment services, which are in tune with the expectations of even the most demanding of customers.
As a Fund Manager, Framont is able to establish different ad hoc sub-fund types for the management family assets or for the implementation of particular investment strategies. The firm also offers support within the evaluation of investment strategies proposed by private customers, institutional or advisory to attain the product that best suits them.
The Company’s task is to be able to switch between being a facilitator of communication, to a supporter of the observance of agreements, rules and intensive choices. Furthermore, it aims to facilitate in the process of the transitions and handover of corporate assets in the least traumatic and linear way possible.
“Framont & Partners Management Ltd aims to be a key market player within the financial markets where independency, quality and efficiency are met at all times. Excellent results mean satisfactory clients, team and partners, led by a professional approach and guidance.”
Website: http://www.framontmanagement.com/
Retail investors withdrew £3.5 billion from UK investment funds in June, according to Investment Association data released today.
By comparison, in the worst month of withdrawals during the financial crisis, January 2008, retail investors withdrew £561 million from UK investment funds. In October 2008, just after the collapse of Lehman Brothers, retail investors withdrew £493 million from UK investment funds. Total assets under management are now around twice as high as they were back then, but June 2016 was still an exceptional month for outflows.
The exodus was led by investors in the property sector, who withdrew £1.4 billion from these funds, leading to some funds suspending trading, and others imposing hefty dilution levies on those who did want to sell.
£2.8 billion was withdrawn from equity funds across the board, with £1 billion of net withdrawals from the UK equity sectors.
£464 million was also withdrawn from ISAs over the course of the month.
Laith Khalaf, Senior Analyst at Hargreaves Lansdown comments:
‘The scale of the exodus from investment funds in June is quite extraordinary, with the Brexit vote eclipsing the financial crisis in terms of putting the frighteners on retail investors in the short term.
The property sector saw the biggest outflows, as investors flocked to the emergency exits, concerned that the economic effects of leaving the EU would damage commercial property prices. Since the vote some property funds have been forced to suspend trading because of the high level of outflows, with others imposing high transactional charges on those wishing to sell. UK and European equity funds also saw heavy outflows over the course of the month, with fixed interest and absolute return funds being the main beneficiaries.
Clearly investors were rattled by the referendum, and switched out of assets they perceived to be at risk from a vote to leave the EU. UK investors who withdrew from equity funds are probably regretting this decision in light of the performance of the stock market since the referendum, and that goes in spades for those who cashed in their ISA allowance, losing that tax shelter forever.
This demonstrates the danger of events-based investing, because even if you do happen to guess the correct outcome, you still might not be able to predict the effect on markets and asset prices.
When it comes to elections and referenda, investors are better off voting with their polling cards rather than their finances. In these situations it pays to keep a cool head, to ignore the inevitable clamour, and to take a long term view on your portfolio.’
(Source: Hargreaves Lansdown)
