Services for institutional investors

How do we proceed?

Our customers value our professional and pragmatic approach when it comes to providing advice and implementing strategies:

• Investment strategy: you decide whether to continue with your existing strategy or to review and potentially adjust it. We provide you with the facts on which you can base your decision. 
• Tailor-made implementation: we take into account your needs and situation and always act in line with our investment principles.
• Independent securities selection: the focus is on sticking to a strategy using cost-effective investments. As an independent company, we do not issue any of our own funds or ETFs, but instead choose from a broad offering using our best-in-class approach. 
• Tax optimisation: we make use of tax-optimised investments wherever possible.
• Low cost and high security: your strategy is implemented via VZ Depository Bank, which specialises in the low-cost settlement of transactions. Security is extremely important to us. That is why VZ Depository Bank has an extremely solid capital base.

How to change providers

While switching to a new partner can be challenging, it is no great cause for concern. Our “moving service” guarantees a smooth, cost-effective switch and takes care of all administrative tasks for you.

Asset management for pension funds: What are our key investment principles?

At VZ, we offer a simple and efficient organisational structure with a clear division of duties. This allows you to focus on what matters most. We adhere to the following investment principles: 

• The investment strategy is responsible for the majority of the long-term success of any investment and is not a place to take any unnecessary risks.
• Strong strategy adherence will lead to better investment results over the long term.
• Our independence allows for efficient asset management without any conflicts of interest.
• Low costs help improve the investment result.

How does portfolio management work at VZ?

Our partnership is based on a written mandate containing all the important information, from the investment strategy and bandwidths, through to individual requirements and framework conditions for managing your portfolio.

At VZ, we primarily invest in cost-effective institutional index funds with the aim of generating market returns. Depending on the investment strategy or for specific investment themes, we can also use actively managed funds; here we focus specifically on the cost to return opportunities ratio. 

The individual portfolios are tactically managed primarily using an anticyclical bandwidth rebalancing process. Compared with periodic rebalancing or a buy-and-hold strategy, this anticyclical approach has a positive impact on the value of the portfolio over the long term.

Costs and reporting

We offer a flat fee for our portfolio management service, which covers portfolio management, securities account management fees and transaction costs. 

Our customers value our professional, clear and transparent reporting. We can visit you or you can come to one of our branches for periodic meetings.

What are your advantages?

• As a pension fund, you receive a tailor-made, efficient and cost-effective investment solution that does not involve any unnecessary risk.
• Thanks to our best-in-class approach, you have access to index funds from all major providers which have been set up specially for institutional clients.
• Our own depository bank is a cost-effective platform, which has an extremely solid capital base and thus offers a high level of security.
• We offer a flat fee, which covers portfolio management, securities account management fees and transaction costs.
• We have always ensured that we act with the utmost transparency and that we reimburse retrocessions.
• VZ also places great emphasis on sustainability.

How do we operate?

Our customers value our professional and pragmatic advice and implementation strategies:

• The right investment strategy: this begins with a spending and liquidity plan, which we would be more than happy to help you with. From this, we then derive the right investment strategy taking into account the risk tolerance and risk capacity of your institution. If you have already defined an investment strategy and clear requirements for your securities investments, we can provide you with a quote for our portfolio management service. The investment strategy is ideally defined in a set of investment regulations. This means that those responsible in your institution and we as a portfolio manager are clear what framework conditions apply.
• Tailor-made implementation: when issuing proposals on how to implement your investment strategy, we take into account your individual requirements, framework conditions and our investment principles.
• Independent securities selection: the focus is on sticking to a strategy and using cost-effective investments. As an independent company, we do not issue any of our own funds or ETFs, but instead choose the best investments from a broad offering using our best-in-class approach. 
• Analysis of current investments: we carry out a detailed securities portfolio and costs check for your current securities investments. You receive a proposal which securities you should keep and transfer and which you should sell.
• Low cost and high security: the investment strategy is implemented via VZ Depository Bank, which is particular cost-effective when it comes to settling transactions. Security is extremely important to us. That is why VZ Depository Bank has an extremely solid capital base.

How to change providers

Our "moving service" helps ensure that you can smoothly and cost-effectively transfer your investments across and takes care of as many administrative tasks as it can for you.

What our key investment principles?

• Our simple and efficient organisational structure with a clear division of duties means you can focus on what matters most.
• The investment strategy is responsible for the majority of the long-term success of any investment and is not a place to take any unnecessary risks.
• Lower costs help improve returns.
• Sticking with a strategy will lead to better investment results over the long term.
• Sustainable investments lower the risks while expected returns remain at least the same.

How does portfolio management work at VZ?

• Portfolio management mandate: our partnership is based on a written mandate containing all the important information, from the investment strategy and bandwidths, through to individual requirements and framework conditions for managing your portfolio.
• Securities portfolio: we primarily invest in cost-effective institutional index funds with the aim of generating market returns. Depending on the investment strategy or for specific investment themes, we can also use actively managed funds; here we focus specifically on the cost to return opportunities ratio. 
• Investment tactics: the individual portfolios are tactically managed primarily using an anticyclical bandwidth rebalancing process. Compared with periodic rebalancing or a buy-and-hold strategy, this anticyclical approach has a positive impact on the value of the portfolio over the long term.
• Flat fee: we offer a flat fee for our portfolio management service, which covers portfolio management, securities account management fees and transaction costs. 
• Reporting and meetings: our customers value our professional, clear and transparent reporting. We can visit you or you can come to one of our branches for periodic meetings.

What are the advantages for you?

• We independently analyse your current investments and help you determine the right investment strategy for you.
• If required, we will also assist you in drafting a set of investment regulations.
• We will develop a tailor-made, efficient and cost-effective investment solution for you.
• Thanks to our best-in-class approach, you have access to index funds from all the major providers which have been set up specially for institutional clients.
• Our own depository bank is cost-effective, has a solid capital case and is secure.
• We charge a flat fee, which covers portfolio management, securities account management fees and transaction costs.
• We have always ensured that we act with the utmost transparency and that we reimburse retrocessions.
• At VZ, we also place great emphasis on sustainability.

Who is a business management mandate suitable for?

In particular, pension funds with fewer than 1,000 members are well advised to fully or partially outsource the management of their business. As an outsourcing partner, VZ is able to offer the required infrastructure for a far lower price because we also act on behalf of many other foundations. The specialists at VZ Pension Fund Services offer modular management mandates, consultation on special projects and specialist services for active members and retirees. This means that anyone can put together a service package that suits them.

Which services are included in the business management mandate?

Under the most comprehensive mandate we offer, the foundation board fully outsources its business management functions to VZ. This allows the board to focus fully on its role as the foundation’s decision-making committee. This means the company no longer has to carry out a wide range of administrative tasks and because the pension fund is managed more efficiently, costs are lower. In addition to the organisational, commercial and technical business management activities, the full mandate also includes controlling as well as additional services for active members and retirees. Thanks to the informative periodic controlling reports we provide, the foundation board is at all times aware of the fund’s financial position.

How is the relationship managed?

As part of the business management mandate, we work together with an external partner to develop a Service Level Agreement, which describes all the activities and processes, defines the respective interfaces, and agrees the quantitative and qualitative goals and requirements. Such an agreement helps guarantee reliable management and helps to verify whether all the tasks have been completed that are included in the fee.