Reichmuth & Co Privatbankiers
Origin of Reichmuth & Co Privatbankiers
Reichmuth & Co specializes in asset management. The bank was established in 1996 in Lucerne as an asset management company and was converted in 1998 into a bank. Reichmuth & Co is the youngest real private bank, an is organized as a limited partnership with three general partners with unlimited liability. Reichmuth & Co has offices in Zurich and St. Gallen.
Philosophy and Strategy
The structure of Reichmuth & Co allows them to offer stability and continuity to their clients. Reichmuth & Co is visiting their clients also at home because the clients appreciate it. The bank has an individual and flexible approach. The motto is: to advise the customers as you would like to be advised.
Reichmuth & Co believes that wealth can best be preserved and increased over generations through integral asset management.
The bank has an independent investment approach based on innovative niches and clear opinions. Reichmuth & Co aims to reconcile man and money.
The portfolio managers at Reichmuth & Co have their responsibility. During the morning meeting the strategy is fixed; how do the markets look like, how do we have to adjust the strategy. There is a house opinion but no central portfolio management at Reichmuth & Co. Each portfolio manager knows his clients and knows what the client wants.
The money managers around the world are regularly visited. This can be in Asia, the US or England. Knowing the money managers personally and keeping in touch with them is very important to Reichmuth & Co.
The basis for a target-oriented strategy is a consolidated overview that collectively records all the assets of the client even across different banks. The client regularly receives a consolidated overview either by post, electronically through e-Connect or via smartphone or web.
Services and Solutions
Reichmuth & Co is active in integral asset management for private, corporate and institutional clients, investment advice, retirement provisions and pension planning, and charitable activities. The bank is also active in investment management.
Integral Asset Management
Integral Asset Management is a philosophy. It is an approach that helps to identify customers needs and implement individual solutions based on each client’s situation. Reichmuth & Co. looks at the client’s assets as a whole and makes sure that they are optimally coordinated.
Reichmuth & Co’s clients benefit from the expertise of specialists in all securities, currencies and markets. The client decides and Reichmuth & Co provides support and advice. The client can count on a professional partner with whom he can exchange views and ideas.
Besides the individually structuring and monitoring of the portfolio and the direct market access, Reichmuth & Co also provides relevant market information and trading solutions. The bank’s sales structure is non-sales oriented and the client can count on in-house buy-side research.
Retirement provision & pension planning
The retirement provision is an important pillar in the asset accumulation. Reichmuth & Co is advising their clients throughout the entire life cycle. The bank ensures that the client’s assets are tax-optimized and maintained over generations.
The life cycles can be divided into education & marriage, asset accumulation, retirement planning and transfer of assets.
The future-oriented scenario analysis forms the basis of the investment approach. The scenarios are based on a detailed market analysis focusing on fundamentals and valuations.
From the diversified investment strategies Reichmuth & Co derives their “robust portfolios”, taking into account the political and macroeconomic environment, return expectations, sentiment data and fund flow.
The main criterion of the investment decisions is the intrinsic value of each asset. Price and value are often not the same and the market tends to exaggerate. These overreactions give a good opportunity to act counter-cyclically. Stock selections are based on companies with good products, clean balance sheet and good management. In niche areas the bank relies on external managers with many years of track record.
We can differentiate between three asset allocations:
- Strategic asset allocation – long-term 3-6 years
- Tactical asset allocation – 3-6 months
- Active portfolio management – daily
Reichmuth’s stock selection is based on qualitative and fundamental analysis. Globally positioned companies with a healthy balance sheet and positive operating cash flow and first-class products are the favorite investments. Diversification and a good balance of risk and return are essential of the portfolio structure.
Reichmuth & Co offers infrastructure investments which have attractive long-term characteristics, like the ownership of real assets and stable returns and cash flows. These investments help to diversify the portfolio.
Infrastructure investments are offered in the fields of:
- Transport – ground, water and air
- Supply and Waste disposal
- Social infrastructure – educations and healthcare
The Board of Directors has the responsibility for the overall risk of the bank, including the risk framework, the risk assessment, and the internal controls. They are reassessing the risk regularly, especially the credit risk, the liquidity risk, and the operational risk. The Board also approves the risk policy and has the responsibility for the supervision of the implementation. The Executive Board does the implementation. The ongoing monitoring and the risk management procedure are delegated to committees.
Rütli Foundation is an umbrella foundation. It offers legal, organizational and tax services to persons who want to engage in charitable activities. Donations to charitable causes can be made either during the lifetime or in the will.
Reichmuth & Co offers three different platforms:
- Returns are used to support non-profit activities
- Independent foundations
If the client wants to be charitable, then Rütli Foundation is the right choice. Having its foundation is time-consuming and labor-intensive. There are start-up costs, which are charged to the foundation capital and thus reduce the potential for donations.
Rütli Foundation is eliminating the hurdles on the way to the charitable goals and offers to the client many years of know-how and a reliable and established organization. The foundation acts individually, and effectively.
Reichmuth & Co is a niche specialist and offers attractive added value:
- Reichmuth Pilatus – The fund has a value-based investment strategy
- Reichmuth Dividend Selection Switzerland – Dividend stocks with an active value approach
- Reichmuth Global Leaders – Global quality stocks
- Reichmuth Bottom Fishing – Global equities using a contrarian strategy
Reichmuth & Co Privatbankiers – Facts & Figures
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|Phone||+41 41 249 49 49|
|Year of foundation||1996|
|No. of employees||76|
|Shareholder’s equity||>150 mm CHF|
|Assets under Management||10 bn CHF|
|Assets under Management / Employees||131.578 mm CHF|
|Net Profit / Employees||–|
|Tier 1 Ratio||32 %|
|Cost / Income Cost Ratio (CIR)||–|
Source: Annual Report 2017