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CONNECT portfolios are designed to achieve optimal returns at every level of risk. We do this by combining our in-house investment expertise with best-in-class providers – so you can invest in an intuitive, smart and convenient way. Through diversification, regular re-balancing, efficient investing and lower fees, the CONNECT approach to investing can help you generate higher returns than our competitors:
With insights from Morningstar, the global independent research and investment firm that works with some of the biggest investors in the world, we set the underlying strategy of each portfolio. Together we:
Define the initial asset allocation from a selection of 12 global asset classes, taking your risk profile into consideration
Select the underlying securities for optimal returns. We are free to include all types of investments, whatever is appropriate for your goal and risk profile, including individual securities
Re-balance the portfolio periodically. This keeps the portfolio on track and helps protect your investments from changes in global economic conditions
You expect results. We can’t claim to predict the performance of the markets, but we do know that for a given level of return, our aim is to reduce volatility and enhance performance through diversification across multiple asset classes. We do this, while maintaining our commitment to fee transparency and product efficiency.
Here is a selection of our portfolios – at different levels of risk – with targeted annual returns:
|Portfolio||Strategy||Targeted Annual Return*|
|Cash Plus||Conservative Money Market Alternative||+0.81%|
|Balanced||Balanced Global Multi-Asset||+6.8%|
|Aggressive Plus||Leveraged Global Multi-Asset||+10.3%|
*No guarantee of performance is being indicated in this table. This table and any associated descriptions are samples and intended to represent potential mixtures of asset classes that may be suggested to Accredited Investor clients once they have been successfully on-boarded. This material is not investment advice and should not be construed as an offer to sell or the solicitation of an offer to buy securities.
CONNECT uses actively managed Certificates as the investment vehicle for your portfolios. Banque Julius Baer, one of Switzerland’s most revered private banks, provides and issues the Certificates.
Each CONNECT Certificate is built around its unique investment strategy and may hold individual securities, a basket of securities, commodities, exchange traded funds, or other alternative assets – all chosen to provide optimal returns at every level of risk.
Most digital investment platforms limit your portfolios to Exchange Trade Funds (ETFs) because it makes the process much simpler for them. What they don’t tell you is that this policy also causes two major inefficiencies in their model:
– ETFs carry fees (0.44% per year on average). These fees reduce the returns of the ETFs and are passed through to you and then they add their own fees to your portfolio. This is known as “Fee Stacking”. CONNECT Certificates do invest ETFs, but only in cases where they provide better access to an asset class than owning the underlying securities outright.
– ETF-only portfolios have another major inefficiency – they require a large number of transactions to establish and to rebalance when markets move. These transactions result in additional fees which will impact your returns. Because each CONNECT portfolio is contained within one Certificate, there are never any transaction fees to impact your investment returns – even during re-balancing.
One of the fundamentals of good investing is good diversification. At CONNECT, we have done that work for you—every client can invest in a diversified portfolio of up to 12 global asset classes.
We picked these 12 based on careful consideration. Depending on your goal and your risk profile, your portfolio may include exposure to any of the following asset classes and regions:
|U.S. Equities||Global Bonds||Global Real Estate Funds|
|Pan-European Equities||Asian bonds||Commodities|
|Japan Equities||Emerging Market Bonds||Cash Equivalents|
|Asia Pacific ex-Japan Equities||Global High-Yield Bonds|
|Emerging Market ex-Japan Equities|
Low fees to maximise performance
A lot of time is spent discussing investment manager performance, but there is one aspect of investing that can make more of a difference on portfolio returns than any other. When considering the performance of your portfolio, fees matter. A lot.
At CONNECT, we are committed to transparency and efficiency. That means we will never charge any hidden fees. Our efficient portfolios mean the advisory fee ranges between 0.20% and 1.25% per annum, depending on the portfolio. This is the only fee you will ever be charged by CONNECT. Like you, we don’t like high fees.
What are the risks?
CONNECT Certificates carry the market risk linked to their underlying strategy, meaning that the value will fluctuate with the value of the underlying investments. This is why it is so important that the investments you make are suitable for you and match your risk profile.
Additionally, the Certificates carry the credit risk of the issuer, Bank Julius Baer – which is rated Aa2 by the Moody’s Ratings Agency. If the issuer were to default, the value of the Certificates would fall as well.