fund_invitation_english

To asset managers, fund managers,
fund administrators and financial institutions
Invitation to a CornèrTrader seminar:
FUNDS FOR THE FUTURE
FUNDS SOLUTIONS IN A FAST CHANGING ENVIRONMENT
AND THE NECESSITY FOR ONLINE MANAGEMENT
THE CORNÈR WAY
When and where?
LUGANO: Monday, May 26th, 18.00-19.45 – Grand Hotel Villa Castagnola, Viale Castagnola 31
ZURICH: Tuesday, May 27th, 18.00-19.45 – Hotel Baur au Lac, Talstrasse 1
GENEVA: Monday, June 2nd, 18.00-19.45 – Swissôtel Métropole, 34 Quai Général Guisan
We are pleased to invite you to one of our events in Lugano, Zurich or Geneva, where you will get a comprehensive
overview of the changing regulatory environment and the legal considerations you need to take into account before
starting a fund, how to set-up an offshore fund or optimizing the ones you already have and how trading online can
help reducing execution costs and most of the administration burden.
»Migrating to an online
execution platform is
becoming indispensable«
Interview with Jesper Grosen Jensen,
Head of CornèrTrader
Vittorio Cornaro
Executive Board Member
and Executive Vice President
Cornèr Bank
Dr. Günther Dobrauz
PricewaterhouseCoopers,
Head of Asset Management,
R&C Practice
Peter Kristensen
CEO, JP Fund Services
SHORT
INTRODUCTION
TO CORNÈR BANK
DEALING WITH
CHANGING
REGULATION AND
ENVIRONMENT
EXPERT AND PRACTICAL
INSIGHTS INTO ESTABLISHING
EFFECTIVE ALTERNATIVE FUND
STRUCTURES
Through its family of brands
and services, Cornèr Group
serves a full range of client
types including private,
commercial and institutional
clients, along with financial
intermediaries. Cornèr’s
well-respected branded
offerings include Cornèr
Bank, Cornèrcard and
CornèrTrader.
PwC will highlight the
prevailing challenges faced
by Asset Managers based in
Switzerland who are dealing
with the ever changing
regulatory environment and
are looking for models and
solutions on how to optimize
their funds.
Dominic Lawton-Smith
Director, JP Fund Services
In the seminar series, JP Funds executives will be
outlining the many processes and considerations
involved in establishing alternative investment
structures including insights into the structuring
process and the many legal, regulatory and
practical perspectives.
YOUR REGISTRATION IS NEEDED
Entrance is free but you need to register in order to make sure your seat is reserved. Please, go to www.cornertrader.ch/en/fund
for more information and to sign up for one of above events, call us at 058 880 80 80 or just send an email to [email protected]
Click here to sign up
EVENT REFRESHMENTS
From 18.00 and after the event refreshments will be served.
1. Centred but also gives us the perfect position to start
the next word underneath as an Asymmetrical alignment,
therefore keeping everything looking the same.
2. Left aligned
Asset management services
Why choose CornèrTrader?
Funds for the future
Offshore alternative solutions
and online management
CORNÈR GROUP
#3
The Banker
TOP
1000
WORLD BANKS 2013
thebankerdatabase.com
2013
Total assets (CHF millions)
Shareholders’ equity (CHF millions)908.2
2012-now:
Head of CornèrTrader
75%
59.165.7
Tier 1
26%
Staff (FTE)
Cornaro
Photo: Anna Bang
+
876.1
Net profit (CHF millions)
Bank founded
in Lugano,
Switzerland
2010-2011:
VP BHF Bank, Private Banking Zurich
Cornèr Bank is controlled
by the following family
founder groups:
6,030.55,468.0
Customer lendings (CHF millions)2,804.1 2,598.9
1975
2006-2009:
Head of Frontline Sales and Service, Saxo Bank
2012
Customer deposits (CHF millions)4,164.9 3,751.7
1974
2003-2005:
Sales Manager, Global Sales, Saxo Bank
*Source: The Banker
Key figures
1952
1998-2002:
Professional Handball Player in Denmark
in terms
of capital
soundness*
Cornèr Bank
World ranking: 644
Country ranking: 29
Funding
member of VISA
Jesper Grosen Jensen
25%
23.1%
Piotrkowski-Dollfus
966931
Establishment of
Cornèr Banque
(Luxembourg) SA
Establishment
of Cornèr Bank
(Overseas)
Limited, Nassau
1989
1996
First bank to
issue Visa cards
in Switzerland
1995
Member of the
Swiss Stock
Exchange
1998
Member
of Eurex
1999
Issuance of
MasterCard
2008
Visa Licence
to issue cards
also through
Cornèr Banque
(Luxembourg) SA
Launch of
CornèrTrader,
trading online
2010
2012
Visa Cross
Border Licence
for UK
2011
Acquisition of 100% of
BonusCard.ch Ltd.
CORNÈR BANK GROUP:
LUGANO
Via Canova 16, 6901 Lugano
Tel. + 41 91 800 51 11
ZURICH
Tödistrasse 27, 8002 Zurich
Tel. + 41 58 880 80 80
GENEVA
Rue de Rive 1, 1204 Geneva
Tel. + 41 22 816 17 00
WWW.CORNERTRADER.CH – [email protected]
»MIGRATING TO AN ONLINE
EXECUTION PLATFORM
IS BECOMING INDISPENSABLE«
Interview by Rohan Sant
How will online execution affect the
institutional trading and investment
environment in the future?
Any business that goes online has the
usual advantages of access, location
and economy of scale. Moreover, at
CornèrTrader, we strongly believe that if
a computer can do a task better than you,
you should have it do it. This statement is
particularly true in the case of transactions
execution. Most of the tasks involved in
this process are tedious and repetitive.
They are time consuming for the wealth
manager and they keep him/her away
from the more important tasks he/she
has to carry out for the clients, i.e. actively
manage the account, sharpen his/her
market views in order to find the best
investment opportunities and develop
client relationships.
We also believe that the future is now.
Beyond the famous quotation, it seems
quite obvious that migrating to an
online execution platform will become
indispensable in the years to come. The
major trends we see now on the market
which are transforming the industry – the
need for more transparency, high demand
and better educated clients with more
interest in managing part of their activity
themselves, among others – are inducing a
higher volume of administrative tasks.
Little by little, the general move to
online execution platforms will create an
environment where administration will
no longer be a burden in terms of time
consumption, while increasing automation
will enable economies of scale, and leave
less and less space for execution errors.
How can migrating to an online execution
platform help the money manager access
new client segments?
One of the great advantages is that it could
allow money managers to broaden their
client base. Indeed, the ability to scale
their business and work on a lean cost
structure grants them access to client
segments they did not consider before.
This is, for example, the case for smaller
clients for whom the administration costs
can easily be too heavy for the account to
be profitable.
But the advantages do not only concern
the costs of execution. The time saved on
execution can also be used to attract new
clients and develop business.
You claim you combine online access with
a professional high-end personal service:
how is that possible?
At CornèrTrader, clients’ needs have
always been the main focus of our
attention. This is part of the DNA we share
with Cornèr Bank and our sister brands.
This special attention is based on mutual
understanding and trust we have shared
with our clients for over 60 years. As part
of its unique offer, CornèrTrader introduces
wealth managers to a specifically
dedicated service: a trading team with
which managers can challenge trading
ideas. These seasoned professionals can
then execute the managers’ market views
with the best options available at a given
time. This department’s mission fits in
perfectly with the Cornèr Bank tradition:
always offer the best support to our clients.
The trading team supports the managers
from signing up, over to their first trade
and all the way to the performance fees
calculation, thus ensuring a smooth
transition to online trading and execution.
0
15
F
s
air
Xp
ts
ke
ar
Ds
m
CF re
23
0
o
00 m
6. nd
a
nt
insta
ick
e cltrading
n
O
UR
5M E
to 2
Up
g
adin
o tr
Alg
TR ADING SUPPORT
News and research
Sales trader
Training and
education
CLIE
N
ADM
INIS T
TRA
TIO
Alloc
N
a
man tion to
age ol /k
MA
R
me ey
Clien
nt
NA ISK
t on
boa
G
EM
rdin
Ma
Due
g
rg
EN
dilig
in
enc
ha
Ris
e
nd
kn
lin
ot
ifi
ca
tio
1
N
TS
EN
M
RU
ST
SS
ING
RT
PO
RE
The second step is what we call “hands
on practice and onsite training„. Once the
platform is set up, we configure the tools
with the clients in order to specifically
match their needs. We explore with them
the full extent of the platform capabilities
such as:
M
The last step involves signing up all the
manager’s clients onto the platform, and
granting each individual the full extent
of personal service and care we are
renowned for.
K
AR
CCE
ET A
g
rin
ito
on
tm
al
ien
isc
Cl
df
an
As an independent asset manager it all
fits into three easy steps. First, we open
an account with a few features requiring
little training, such as forex, equities
or commodities trading. This enables
the manager to get familiarized with
the features of our platform and all the
tools available. Then we proceed to a
full opportunity assessment, a thorough
analysis of the manager’s business model,
and we also take into account the number
and type of clients, the different investment
strategies, etc. in order to find the right
platform set up for each client.
• web connect: allows the end client
to monitor the trader’s activities (no
trading function)
L
P/
As part of the Cornèr Bank family, we
benefit from the bank’s long experience
and excellence in asset management. It is a
very sound and solid parent company which
offers its clients reliable and outstanding
tailor-made services. All this is in our DNA
and we strive to provide our clients with a
similar quality of service.
In practical terms, our clients generally
benefit from the Bank’s research via
daily market comments and trading
How does the manager start using your
platform?
• end of day overview (reporting)
g
How can your clients benefit from your
being part of Cornèr Bank?
Our motto is “personal service, solidity
and reliability„; these are our priorities.
Clearly, we are not entering the market
to compete exclusively on prices. We
were quite positively surprised by the
survey published in the Swiss media last
February. It turns out that thanks to the
efficiency of our business model and our
state-of-the-art technology we happen
to be very competitive on our prices.
This is very encouraging for our future
development.
• back-office tool
ASSET MANAGEMENT SERVICES
WHY CHOOSE CORNÈRTRADER?
T
Although we are convinced we have the
best technology on the market, we maintain
a rather conservative approach. We study
our clients’ situation closely and define,
with them, what is the best option for their
business. In this process, we also make
sure that we cover our clients’ needs for
the next 10 years or even more, ensuring
we provide them with the right tools for
execution trading and banking, as well as
the best technologies available at any time.
• chart functionality (from which you can
trade directly)
• equity tool (featuring “zoom„ option on
specific universe)
ns
We believe in a long-term approach. We
know the market and we are dedicated to
bringing the best to our clients at all times.
Our commitment to our clients is very
important and is part of the DNA we have
inherited from our group, Cornèr Bank.
We bring in the history, the responsibility
and the outstanding reputation of a bank
that has been here for over 60 years.
Recent articles in the Swiss press
have shown that you have the lowest
transactions rates. What is your cost
structure?
• technical analysis tool
I
What is your approach to client
relationship?
• trade allocation tool
On
ea
cco
un
Mu
t
lti
as
s
et
All
de
vic
es
We believe both the market and our
product are mature now. Launching now
enables us to offer our clients the latest
technologies and developments in online
execution and trading. The maturity of our
platform is also key to our lean operating
structure, which in turn is key to keeping
our execution costs rock bottom.
strategies suggestions available on the
platform. Synergies also include other
Group entities, such as the issuance of the
TradersCard (launched in April 2014, ndlr.)
through an alliance with Cornèrcard, the
other major brand of Cornèr Bank.
PL
AT
FO
RM
Why is Cornèr Bank launching its online
service for money managers now?
WE CUSTOMIZE OUR OFFERING TO MEET THE SPECIFIC
DISCRETIONARY TRADING NEEDS OF ASSET MANAGERS, MONEY
MANAGERS AND FAMILY OFFICES, HERE IS HOW WE CAN HELP:
Direct market access
Through an intuitive trading platform that allows you to build,
execute and allocate a nuanced multi-asset trading strategy
you get direct access to the international capital markets.
Easy and convenient client administration
Back-office support that simplifies client onboarding and
regulatory reporting, allowing you to spend more time
focused on trading.
Enhanced client relations
Keep your clients happy and satisfied by offering a
transparent and competitive online investment solution.
Simple fee structure
Transparent and volume based cost model with no custodian
or start up fees.
• W
e offer a vast range of trading products, including primary assets and their derivatives, allowing you to build
a nuanced hedging, trading or investment strategy from within a single platform.
• Within each asset class, we deliver unparalleled depth of product, giving you and your clients access to
emerging markets, commodities and exchanges from around the world.
• Live prices and deep liquidity give you the best possible execution of your trades.
• Our award-winning platform seamlessly transitions across devices, allowing you to customize your workflow.
WWW.CORNERTRADER.CH – [email protected]
By Rohan Sant
FUNDS FOR THE FUTURE: OFFSHORE ALTERNATIVE
SOLUTIONS AND ONLINE MANAGEMENT
These are challenging times. The regulatory evolutions have increased
the administrative burden. Setting up funds is no exception to this
trend. CornèrTrader teams up with JP Funds Group to offer clients a
low hassle range of highly efficient solutions.
The problem with writing about starting up
a fund is that there are so many questions
that have to be asked – for example, where
do you want the fund to be established,
how do you comply with new regulation, or
even how do you make it profitable… And
the answers to these questions usually
beg other questions.
• Secondly, identify service providers
and advisors, including an Attorney,
Auditor, PB, Administrator and Payment Bank or service providers that
can co-ordinate these functions.
Many new managers do not think about the
fund economics at all. They just think they
have the investors, the winning strategy
and want to “institutionalize„ that success
into starting their own fund. They forget
that starting a fund is really about starting
a small business – only it’s even higher
stakes and higher pressure because
there’s little to no tolerance for failure.
These documents, which will be drafted
by the Attorney, will include the Offering
Document, the Subscription Application
form and the Investment Management
Agreement as well as other Service Provider agreements. It will also be necessary to prepare a Pricing Policy Document
with the Fund's Independent Administrator
and, depending on the strategy, an Asset
Verification Agreement, also with the
Administrator.
When creating a fund, there are rules that
apply to all: regulation represents the
biggest chunk of those and are specific to
each country. But there are also common
sense or business rules of which three
might be crucial if you are to succeed: it
must be specific, it must be repeatable
and it must not be dependent on one set of
economic conditions or a single person, it
must be understandable.
Structuring the Fund
There are quite a number of things that
must be done and decisions that must be
made before the Fund can be set up. These
include, inter alia:
• Firstly, prepare a detailed business
plan so you can calculate what the
initial establishment costs are for the
Investment Manager, two years operating costs and repeat the exercise for
the Fund. That will establish the minimum capital needed, before you can
expect any revenue from investors.
• Draft documentation, which MUST be
complete and absolutely accurate and
must cover all possible situations.
The Offering Document should contain
amongst other things a detailed description of the investment strategy and policies, including the markets and assets/
instruments traded, the fund manager
and the individuals who run both the fund
manager and the Fund, as well as full risk
disclosure, investment restrictions that
will be followed and both subscription
and redemption policies and procedures.
And if it is an Offshore Fund the CVs of the
members of the Board of Directors, should
be included.
Here is a short list of questions to be answered or decisions that need to be made,
prior to start any of the set up process:
• What is the fee structure?
• Do you want an Exchange Listing?
• Will you want sub-funds for different
strategies?
• What currency will be the designated
currency of the fund?
• Will you need to hedge currency
exposure?
• Will you have sizeable cash balances?
If so, how will they be managed?
WHAT IS AN OFFSHORE FUND?
An offshore fund is a collective investment scheme domiciled in an offshore financial center. It is typically sold exclusively to “foreign„ investors (those not of the
domestic fund sponsor’s country of origin). Offshore funds also offer a cost efficient solution for managers to build a track record. Offshore funds offer eligible
investors significant tax benefits compared to many high tax jurisdictions.
WHAT ARE THE ADVANTAGES?
Offshore funds invest in a
range of assets, including:
Offshore funds employ a wide range
of investment and trading activities to
maximize return while reducing risk.
foreign exchange,
common stock,
commodities,
futures, ETFs and
derivatives.
• Will there be any sales fees/commissions charged?
• Who will be responsible for AML (Anti
Money Laundering) issues?
• How do you promote your fund?
• Where do my investors come from and
are there any special tax or regulatory
considerations that may affect the
structure and jurisdiction of the fund?
Cost effective
Great freedom
on how to invest
PORTFOLIO
DIVERSIFICATION HELPS
Such a process can turn out to be quite
tedious and exhausting for the managerto-be. A plethora of companies around the
world have specialized in setting up funds,
structuring them and even helping with
management administration.
CornèrTrader recently launched its online
trading & management platform and
developed an offer in fund creation and
management. Teaming up with renowned
fund consulting services specialist JP
Funds Group, CornèrTrader aims to offer
the full range of services and support
to create and manage a fund with all the
comfort of an integrated platform. “We
have identified a strong need for fully integrated fund management solutions in the
market. Our alliance with JP Funds Group
allows us to provide our clients with a
comprehensive range of services covering
all the fund manager’s needs from A to Z„,
confirms Jesper Grosen Jensen, Head of
CornèrTrader.
Ideal for emerging
investment managers
There are over
9000 offshore
funds formed in
offshore centers
like Cayman
Island or British
Virgin Islands.
Protect investments
from market volatility
Provide offshore funds with
stable returns over time
Prevent over concentration
in specific assets
There are many unique investment
strategies among the various
offshore funds, for example:
Global Macro
Managed
Futures
Quantitative
Funds
Equity
Funds
Relative
Value
WHO INVESTS?
Offshore funds are a direct
partnership formed between
the fund manager and his/
her investors. Typically
offshore funds are designed
for qualified investors.
Professional
investors
Family offices
Asset
managers
High net worth
individuals
Setting up a fund can also become quite
costly, which could potentially deter many
enthusiasts from taking such a path.
Offshore funds come with a quite hefty
discount: they can be set up at a fraction
of the price of an onshore equivalent and
can sometimes be managed at roughly
40% of the cost of an onshore vehicle. “Our
lean structure and strong expertise allow
us to offer very competitive set up prices.
CornèrTrader’s is recognized as one the
most competitive platforms on the market,
making our solutions probably the most
efficient out there„, adds Peter Kristensen,
CEO of JP Fund Services, a JP Funds
Group company.
The question of where to register the
fund remains. Choosing a country means
adopting its regulation and this can become quite a nightmare to figure out without professional support. “Through our
long experience in the industry, we have
acquired extensive experience and expertise in fund regulation matters around the
globe. Within the scope of our partnership
with CornèrTrader, we register the funds
in the Cayman Islands. This jurisdiction is
recognized by all major financial centers
worldwide and offers a great deal of comfort and familiarity for the qualified and
experienced investors placing money into
funds with alternative investment strategies„, specifies Peter Kristensen.
CornèrTrader brings into the partnership
not only its state of the art online execution
platform, but also the synergies it derives
from being part of the third financially
strongest bank in Switzerland, Cornèr
Bank. Part of its DNA is the capacity of the
bank to act as a custodian for the funds,
“thus taking away one more hassle for
the manager and ensuring an even higher
standard of quality and security for the end
client„, concludes Jesper Grosen Jensen.
Learn more about setting up a fund at the
CornèrTrader seminars in Lugano, Zurich
and Geneva. See invitation on next page.