At GreenLock.io we take our fight against investment fees very seriously since we appreciate what a drag they are on YOUR wealth creation. If you missed it, read here one of our posts on this topic: Why Fees Matter?
Unveiling the Power of Benchmarking
One of the essential weapons we employ in our warfare is the benchmark. My colleagues call the benchmark – "our secret sauce". No longer will it be a secret! Yes, today, we're sharing those benchmarks with you:
Recognising the disadvantage private investor faces against best-in-class market operators, we'd decided to share with you the key ingredients of our benchmarking fee pool – custody and brokerage fees. Financial benchmarking, in essence, involves comparing one's fees and performance against industry standards and best practices, offering valuable insights for optimization.
Understanding the Advantages of Top Financial Operators
You may be wondering – why private investors are ill-equipped in comparison with best-in-class investors, say Norwegian Investment Fund?
That's because top operators look across the value chain to compare and benchmark both visible and invisible fee components. They carefully select the peer groups to compare the total cost of investment (TCI) and urge money managers to disclose the elaborate fee structure to arrive at this:
Fee benchmarking plays a crucial role here, enabling investors to gain a clear understanding of the competitive landscape and identify potential areas for cost savings. This process, when done correctly, can be a game-changer for investors of all sizes.
The Dynamic Nature of Financial Fees
Crucially, fees are not constant! They change as a function of AUM, projected assets growth, and other externalities, such as the level of competition in a given market or newly introduced innovations. Financial markets are constantly evolving, and understanding these dynamics is crucial for effective fee benchmarking. Therefore, it's essential that a family office or investment manager continuously studies and evaluates the fees landscape to take advantage of the best offers, as well as the underlying shifts.
GreenLock.io: Your Partner in Navigating the Complex World of Financial Fees
GreenLock.io applies technology to continuously examine and analyse the investment fees landscape for the key geographies – Switzerland, UK and France. We invest our time and effort to inspect the shifts in the investment landscape and ensure our clients are best equipped to take advantage of those.
But how it works in practice? By leveraging data and technology, we provide our clients with the tools they need to make informed decisions about their financial future.
Last but not least, we bring research skills and the unique approach of ex-management consultants to the table. Our team includes PhDs and MBAs from top European and North American universities. Applying our toolkit, we secured over $5m in savings for our clients (and ticking) in the last two years.
We believe in empowering our clients by sharing our knowledge and expertise. We educate them on best practices in fee benchmarking and help them develop strategies to minimize costs and maximize returns. Our service goes beyond just providing data; we offer tailored solutions to meet the unique needs of each client.
Want to learn more, check out our website. We're confident that our service can make a real difference in your financial journey.
