Firstfive AG has entered into a partnership with Swiss based fintech company FinGuide in order to strengthen its presence in Switzerland. This partnership will create more transparency in Swiss private banking.
Private banking customers will get the opportunity to compare the results of their providers. Banks and asset managers with good performance can distinguish themselves positively from their competitors.
Since 2000, Firstfive AG has provided portfolio performance comparisons for private banking providers and their clients. FinGuide will make sure that more banks and asset managers join the performance comparisons, which would increase transparency in Swiss Private Banking.
Firstfive AG’s custody account comparisons allow banks and independent asset managers to continuously evaluate their performance and compare it with their competitors based on various return, risk and performance metrics. The calculations meet the requirements of MiFiD-II, as they are time-weighted and cost-based on a common basis. The external rating increases the credibility of the reported performances to potential clients and is suitable as a track record in the context of mandate tenders.
The custody account comparisons are therefore a pragmatic alternative to the internationally recognised but very complex Global Investment Performance Standards (GIPS). In any case, the GIPS are only familiar to institutional clients and are limited to yield data without risk indicators. In contrast, Firstfive AG creates added value for the wealthy private customer through comprehensible information.
On a quarterly basis, the top 5 providers of the strategies are listed on a conservative, balanced, moderately dynamic and dynamic basis over 12, 24 and 36 months.