fbpx

The 3 FinMarie Steps

1. A web-based questionnaire

At FinMarie, every investor can choose a personally tailored investment portfolio. First,
select your return expectations and risk appetite. With the help of FinMarie, you can
determine and define your investment profile, create an investment policy, and watch your
asset management scheme develop.

Today, anyone who wants to build a fortune while avoiding high fees, will soon come across
exchange-traded funds (ETFs for short). These are mutual funds traded on the stock
exchange, with the goal of replicating the performance of an index as accurately as possible.
ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making
them an attractive alternative for individual investors.

ETFs require a particular investment strategy. Typically, this means tracking the performance
of indices such as the German Stock Index (DAX). These indices themselves reflect the
performance of the assets they comprise, for example in the case of the DAX, the shares of
30 large German companies. The management of EFTs can be thought of as passive, because
the administrator does not decide how to distribute the assets.

If you want to invest in ETF shares, you can usually buy them on the stock exchange without
having to pay the front-end load. The provider of an ETF does usually issues blocks of shares
rather than individual ones. These are then traded by so-called market makers.

 

WHY ETFs

Would Exchange Traded Funds (ETFs) make sense for me?

ETFs offer investors the opportunity to invest in an index without actually having to buy the
assets they hold, such as stocks. With index funds, you can invest in widely spread stocks
relatively conveniently and cheaply . At the same time, it’s a flexible form of investment: You
can buy and sell your fund shares at any time.

What are the risk of investing in Exchange Traded Funds (ETFs)?

Market price risk: The index serves as the base value for the ETF, so the value of an ETF
depends directly on how the index develops. The replicated index, in turn, is significantly
influenced by the development of respective assets, which it mirrors. Stock markets, for
example, can fluctuate enormously, and these fluctuations happen in accordance with the
respective index. Always be aware that ETFs carry risk.

If your ETFs are being managed passively, the administrator is strictly bound to replicate the
respective index (for example the DAX); she cannot actively react when the market changes,
and is therefore unable to counteract potential risks by making investment decisions.

On the other hand, passively managed EFTs are usually less costly than an actively managed
fund, for which the manager strives to do better than the respective index. And this active
management is a service that you, as an investor, must pay for.

 

On the other hand, passively managed EFTs are usually less costly than an actively managed
fund, for which the manager strives to do better than the respective index. And this active
management is a service that you, as an investor, must pay for.

What are the costs and obligations involved in acquiring Exchange Traded Funds (ETFs)?

Since ETFs only portray indices (ie the fund is managed passively on its own), fees are
generally lower than those of actively managed funds.

Termination – Can I return or sell Exchange Traded Funds at any time?

You can resell your shares in an ETF at any time via the stock exchange. You usually also have
the option of returning your shares to the fund.

What information does FinMarie have to provide me with?

Anyone who wants to offer a public fund in Germany must create a sales prospectus, which
contains all the economic and legal details of the relevant fund. Furthermore, certain main
details from the sales prospectus must be summarized in a Key Investor Information
document. Plus, FinMarie is legally obliged to make current versions of this information
publicly available on its website. The prospectus, Key Investor Information Document and
most recent annual and semi-annual reports must be shared prior to any investment in an
ETF.

For example, if you seek advice from a bank, savings bank, or financial services institution,
they must provide you with all of this information. In addition, you should receive a written
record of this consultation.

Who are Exchange Traded Funds suitable for?

If you want to diversify your investments and risk but don’t want to put your trust
completely in an investment manager’s strategy, then ETFs are a way to invest your money
over the long term, by relying instead on the performance of an index. For an ETF, it’s clear
from the start which investment assets are covered, so the fund manager cannot select
them at his discretion. Also, in terms of weighting and composition, the manager is tied to
the performance of the index.

Will I have to pay taxes?

All investments may incur taxes, so you should consider tax implications before deciding on
an investment.

How does the ETF market look at the moment?

The European ETF market got off to a good start in 2018, with a record-breaking EUR 13.4
billion invested in January alone.

2. Opening a deposit account

We will ask you to give us -beside the regulatory required disclosures – information about
your investment preferences and your financial situation which is essential for us to build up
your custom-made portfolio. Here are the steps you will be guided through when opening
your account:

Submit your contact details, starting with your name, address.
– Financial situation
– Investment experience
– ETFs potfolio proposal
– Final declaration
– PostID Verification under:
https://www.deutschepost.de/en/p/postident/identifizierungsverfahren.html
– Open bank account

As a customer, the account you use to make investments must be held by a depository bank
(or custodian) as defined by the German Investment Code (KAGB), and not with the asset
manager itself (in this case, FinMarie). The assets under management will be held in Sutor
Bank name and for the account of the client on the customer’s account or custody account.

 

3. Asset Management

FinMarie works together with german Robo-advisor platform growney https://growney.de/

Growney is an online investment services that automate investment advice in order to make
wealth management accessible to potentially everyone at any time. The intuitive platform
enables you to either choose the parameters proposed by the system, or configure your own
investment preferences. You can modify your settings at any time.

Based on informations from web-based questionnaire an algorithm creates an investment
proposal, sample portfolio or investment recommendation. Your FinMarie investment
portfolio will depend on many factors: The economy, inflation, government finances, taxes,
monetary policy and market psychology.

In order for FinMarie to administer your asset-portoflio you give us what’s called power of
attorney. This gives FinMarie access to your deposit account with the custodian bank.
However, we have no authority to take possession of your funds and securities.

FinMarie’s fee is usually determined as a percentage of the portfolio volume and often also
includes a performance-related component. Through our passion, professionalism and
experience, we take your asset management seriously, adding value and making sure you
achieve your financial goals.