PBA 

  
Private Banking Advisory



 "There are so many professionals telling the security buyer what to do, that his self-preservation at times depends perhaps more on knowing what not to do - and when."
(Sydney B. Lurie)

The experienced Partner for the Investor with a substantial Portfolio

June 2017

Click here for Private Banking Directory

> Contact

 


> Home

> Our Services

> Management

> Contact

> News and Comment

> Directory

> Absolute Return
> Asset Allocation
> Banking Secrecy
> Bonds Investing
> Conflicts of Interest
> Credit Risk
> Day Trading
> Diversification
> Foreign Exchange
> Fraud and Scams
> Futures
> Guaranteed Products
> Hedge Funds
> Inflation
> Inflation Bonds
> Investment Fads
> Investment Funds
> IPO Initial Public Offers
> Life-Cycle Funds
> Multi-Manager Funds
> Operational Risk

> Property Investment
> Regulation
> Reverse Convertible

> Segregation of Assets


> Links


"The purpose of money is not to have to worry about it"
 




 

 


 


 

Absolute Return


More and more investors are following the siren songs of the asset management industry and put their faith in the rapidly growing offerings of 'absolute return' funds and investment products. Apart from the fact that providers usually charge higher fees for these vehicles investors should also be aware that the word absolute may have a meaning in other connections but when it is used to describe an investment product's properties it can at best be called nebulous. A quick look at the definition of the word demonstrates that the following meanings can be associated with the term: supreme, total, unadulterated etc. All these connotations have a positive tone and as such one can see that the use of the term absolute is nothing but a clever trick devised by marketing departments in order to lull investors into a false sense of security. Absolute return funds are supposed to stand in contrast to relative return funds. The latter are dominating the institutional fund management space where portfolio managers strive simply to outperform their chosen indices on a relative basis. This can lead to the (absurd) situation that managers that simply lose less than their benchmark index are seen as successful and rewarded accordingly. Absolute return funds are supposed to prevent this from happening by aiming to make a positive return in all market situations. But investors should be aware that the emphasis is on the word 'aim'. There is no guarantee that that there will be any positive return at all. Even worse, given the lack of clear index benchmark it is well possible - maybe even likely - that absolute return funds will under perform compared to the main equity and bond indices when market conditions are favorable.

More on Absolute Return

   


 

 

PBA will help you with the following:|

 

Is your Adviser executing Foreign Exchange transactions at correct prices?

Should you accept 'Financial Products' at part of your Portfolio?

Are you aware of the hidden costs of Structured Products?


How secure is your wealth in a safe deposit box?


Binary Options
- you may better visit a Casino


Risk Premia Strategies -
old wine in new bottles

Stock Picking
- can you beat the Market this way?

Do Women make better fund managers?

Are Index Funds the best choice under any market scenario?

What should I do when my Financial Adviser (Private Bank, Investment Fund) merges?

Should I pay a management fee if my Financial Adviser uses funds that already charge me a fee?


Does my Financial Adviser really select the best possible investment funds for me or is he obliged to select from a pre-determined or proprietary list set by his firm?


Are you at risk from a blow-up in the CDS market?

Should you have to understand what the 'Barrier Hit Probability' is?

Do you know what risks are hidden in your UCITS Fund?

Not all performance fee structures align interests effectively

Does my Financial Adviser provide me with account statements that disclose all fees?

Can you rely on performance projections?

What is private in Private Equity Funds?

Should you participate in Euro experiment?

What can rebalancing your portfolio achieve?

How can you protect yourself against states going bankrupt?

Should you trust your financial advisor?

Are all Index Funds created equal?

Are you in- or outside your hedge fund's sidepocket?

Implementing an appropriate asset allocation

Can financial advisors really be 'independent'?

MIFID
- a flop for the private investor

Are your management and performance fees calculated correctly?

Can you trust relatives when investing?

Pitfalls of investing in ETF's, ETN's, ETC's and ETT's

What is a step-down express
certificate?

Are Hedge Fund Billionaires good for your financial health?

Should you consider 'Newcits', and what are they?

Understand why some ETF's may not perform as you expect

How to survive the global war between savers and speculators

Is your financial adviser a professional or a business man/woman?

Why traditional diversification is no longer sufficient

How to protect yourself against currency 'reform'?

Risk aspects of property and money market funds

Is my money used to pay for banker's bonuses?

What is the best way to invest in Gold?

How should you Financial Adviser be compensated and what role does the remuneration structure of his employer have?

Does it matter where my investment manager is located?

Who is ultimately responsible for the regulation of my investment fund?

Are investments in the USA sensible given proposed changes in the tax law?

Where are my confidential financial affairs still treated with respect?

How to protect yourself from toxic financial instruments

Does past performance help in picking investment managers or funds?


Should you stay away from firms that use Celebrity endorsements?


How to understand what performance statistics hide

Do you need a financial advisor that walks your dog?

Not all regulators are created equal. Which ones should you trust - and what does it mean when an advisor is regulated?


What type of Institution will suit your needs better? Large or Small Banks, Private Banks, Independent Asset Managers or Boutique Managers?

What are the implications if Hedge Funds hold massive cash reserves?

How meaningful is the fact that a Hedge Fund has had only 15 losing months during the past 15 years?

Are larger Hedge Funds or Fund of Funds necessarily better for you?


What is the correct way to set targets for performance fees on Hedge Funds?

Is a 'High-Water-Mark' sufficient to protect the interests of Investors in Hedge Funds?

Are Hedge Funds really a new Asset Class?

There are so many different Indices of Hedge Fund Performance - which one shall I pay attention to?

 


 




 

   
Copyright PBA Private Banking Advisory 2016 - All rights reserved


WE ARE NOT REGISTERED AS INVESTMENT ADVISORS IN ANY JURISDICTION AND WE DO NOT PROVIDE INVESTMENT ADVICE. WE ONLY PROVIDE ADVICE ON COST CONTROL AS WELL AS THE MONITORING AND MEASUREMENT OF PORTFOLIO PERFORMANCE AND RISK. WHERE REQUIRED, WE MAY ALSO ASSIST WITH THE RECRUITMENT OF SUITABLE INVESTMENT PROFESSIONALS. THE INFORMATION AVAILABLE ON PBADVISORY.COM IS FOR YOUR GENERAL INFORMATION AND PERSONAL USE AND THE INFORMATION DOES NOT CONSTITUTE ANY FORM OF INVESTMENT ADVICE AND SHOULD NOT BE CONSIDERED TO BE A RECOMMENDATION WITH RESPECT TO ANY INVESTMENT THE READER MAY CONTEMPLATE. INVESTMENT DECISIONS REMAIN THE SOLE RESPONSIBILITY OF THE INVESTOR OR HIS INVESTMENT ADVISORS. PBADVISORY DOES NOT RECEIVE ANY COMPENSATION TO WRITE ABOUT ANY SPECIFIC STOCK, SECTOR, STYLE OR THEME.