Risk disclosure
Content:
Client information
Information about Inversion Asset Management AG’s financial services
Inversion Asset Management AG has been a successful asset manager in the financial centre of Zurich since 2001.
Inversion Asset Management AG is supervised by Aufsichtsorganisation für Vermögensverwalter und Trustees (the Swiss supervisory authority for asset managers and trustees, AOOS).
Inversion Asset Management AG is also a member of OFS Ombud Finance Switzerland (16 Boulevard des Tranchées, 1206 Geneva), which is formally recognised by the Swiss government.
The asset management agreement
Within the scope of the asset management agreement, the asset manager manages the assets that the client has deposited with a custodian bank in the client’s name, on the client’s behalf and at the client’s risk. The asset manager carries out transactions at their own discretion and without needing to consult the client. In doing so, the asset manager shall ensure that the transactions executed by them correspond to the client’s financial circumstances and investment objectives as well as the investment strategy agreed with the client. They shall also ensure that the asset allocation is appropriate for the client.
When performing the contractual duties, the asset manager shall select the investments with due care. The asset manager shall ensure an appropriate distribution of risk to the extent permitted by the investment strategy. They shall regularly monitor the assets managed by them and ensure that the investments are in line with the agreed investment strategy and are suitable for the client.
Risks of asset management
The following risks, which are borne by the client, may arise during asset management:
- Risk of the chosen investment strategy: Various risks may arise from the investment strategy chosen by and agreed with the client (see below). The client bears these risks in full. The risks are explained and a corresponding risk disclosure is made before the investment strategy is agreed.
- Risk of preservation of capital: The portfolio may lose value as a result of the investments chosen. This risk, which may vary depending on the financial instrument, is borne by the client in full. For the risks of each individual financial instrument, please refer to the Risks Involved in Trading Financial Instruments brochure published by the Swiss Bankers Association.
- Risk of information: When managing the assets, the asset manager considers the client’s financial circumstances and investment objectives (suitability assessment). If the client provides the asset manager with insufficient or inaccurate information regarding their financial circumstances and/or investment objectives, there is a risk that the asset manager will not be able to make investment decisions that are suitable for the client.
- Risk as a qualified investor in collective investment schemes: Clients of Inversion Asset Management AG are considered qualified investors within the meaning of the Swiss Federal Act on Collective Investment Schemes. This status allows for a broader range of financial instruments to be considered when creating the portfolio. Collective investment schemes for qualified investors may be exempt from regulatory requirements. Such financial instruments are therefore not subject to or are only partly subject to Swiss regulations. This may lead to risks, in particular due to liquidity, investment strategy or transparency. Detailed information on the risk profile of a particular collective investment scheme can be found in the constituent documents of the financial instrument and, where applicable, the key information document and prospectus.
Furthermore, asset management gives rise to risks that the asset manager must bear. The asset manager must take appropriate measures to offset these risks, in particular by observing the principle of good faith and the principle of equal treatment when processing client orders. The asset manager is also obligated to ensure that client orders are executed in the best possible manner.
Asset allocation
Within the scope of the investment strategy, the asset manager shall ensure appropriate risk diversification. In doing so, the asset manager takes the following asset classes into account:
- Liquidity
- Fixed-income investments/bonds
- Shares
- Alternative assets (precious metals/commodities/crypto products)
The individual investment categories are covered with direct and indirect investments.
Risks involved in trading financial instruments
The new Swiss Federal Act on Financial Services (FinSA), valid from 1 January 2020, regulates protection for clients of financial service providers. Among other things, its aim is to strengthen investor protection and the Swiss financial centre, and it defines the requirements for the diligent provision of financial services.
The Risks Involved in Trading Financial Instruments brochure published by SwissBanking, the Swiss Bankers Association, is intended to help you make informed investment decisions and enable you to compare the various financial instruments.
SBVg_Risiken_im_Handel_mit_Finanzinstrumenten_2019_DE.pdf (swissbanking.ch)
SBA_Risks_Involved_in_Trading_Financial_Instruments_2019_EN.pdf (swissbanking.ch)
ASB_Risques_inhérents_au_commerce_instruments_financiers_2019_FR.pdf (swissbanking.ch)
ASB_Rischi_nel_commercio_di_strumenti_finanziari_2019_IT.pdf (swissbanking.ch)