Business Principles

Our business prin­ci­ples ex­plain our un­der­stan­ding and approach to invest­ment manage­ment. This de­fines our pro­file as an in­vest­ment manage­ment com­pa­ny and creates a reliable frame­work for our existing and for po­ten­tial cus­to­mers.

R.I. Vermögensbetreuung AG is an investment company in accordance with the German Capital Investment Code (Kapitalanlagegesetzbuch (KAGB)).
Shareholders of the company are exclusively employees and founding members.
We are mainly dependant upon our clients’ trust.

Our company is constructed for an unlimited term and to maximize the safety of the managed assets which our clients have entrusted us with. To ensure this, we have given the company following structure and principles:

  1. Reassuring equity base
    We regularly increase our equity to adjust for an increase in business volume.
    The ratio of equity to assets under management is substantially larger than at competitors.
  2. Preservation and growth of our professional expertise
    Our employees have an excellent education and much work experience without exception. In addition they are regularly educated even further both externally and internally.
    Focussing on essential services and a focused investment policies avoid the dilution of our core competencies.
  3. No lone decisions
    Important decisions – especially investment decisions – are made within a team. It is our opinion that decisions made by one individual are problematic, even if made by a “genious”. Sadly we do not have one of those and if we had, it would need to convince its colleagues. The large advantage with team decisions is that the loss of a team member does not hamper our ability to act.
  4. Avoiding conflicts of interest
    We limit our services exclusively to the management and sales of our investment funds and investment management services in the form of our wealth management. Therefore, we do not offer the following services:

    • No product sales
      We do not generate any earnings from turnover in securities, commissions, „kickbacks“ (participation in commissions from banks, brokers or investment management companies) or from the sale and placement of third party products.
    • No investment advisory
      Although we have the competency and the regulatory authorization to provide investment advisory, we abstain from offering this service to avoid potential conflicts of interest.
      Conversations with clients about investments do not constitute investment advice and are restricted to the description of our wealth management and investment funds, the explanation of their respective investment policies and the necessary analysis whether our wealth management or investments in our funds are aligned with the objective risk ability and the personal notions of the respective client.
    • No Family Office services
      A family office supports wealthy families as a neutral instance with the holistic development, clarification and structuring of wealth and with the selection of the respective managers for security investments, real estate holdings and investment holdings.
      We do not offer these services – also not through affiliated companies – because the required neutrality of a family office with respect to the selection of a competent wealth manager or the best possible investment products cannot be sustained while conducting the business of a investment management company.

Transparency creates trust.

Every interested investor should be able to form his/her own opinion about our investment funds. We therefore publish all important data concerning our investment funds on our homepage which is updated regularly and is publicly accessible at all times. This includes the possibility to compare our investment funds with those of other providers.

In addition, we inform clients of our wealth management services and investment fund investors that are known to us about the composition and investment results of their securities account on a monthly basis.

RIV does not obtain ownership of any client assets:

  • The securities of our funds are deposited at a bank, the custodian bank.
  • Every wealth management client gas a bank and securities account at a bank of his/her choosing and provides RIV with a limited power of attorney restricted to portfolio management, allowing RIV to fulfill its contractual obligations to the client.
  • No initial sales charge is charged for RIV investment funds.
  • The redeption fee of 0,5% is credited to the respective investment funds in its entirety.
  • The management and transaction costs for our wealth management are comparably low. This especially applies for our investment funds where internal costs are substantially lower than many competitors. These costs are tax deductible within the investment funds.
  • Neither our wealth management, nor our fund management receives a fee for the investment results we earned for our clients (performance fee).

Security is an illusion

  • There are no safe investments, only more or less risky investments.
  • A broad diversification does not make an investment safe, just less risky.
  • There is no reward without risk, but very much risk without reward.
  • Often investments which are praised to be particularly safe, e.g. government bonds, are the most risky in the long-term with regard to capital preservation and the badly reputed stocks are much safer in the long-term.

We explain these uncomforting facts to all potential investors to avoid wrong expectations.

No guaranteed investment success
We are not able to guarantee any investment success. We can however point to our 20-year activity as a wealth manager with far above average results in this period of time.

Consideration of the clients’ risk ability
The investment policy of our wealth management is more oriented towards the personal risk ability than towards the current, personal risk perception of a client which often depend on sentiment. We explain this to potential clients.
If a client is not willing to take any risks at all or wants to take on more risks than we believe his circumstances and the respective market situation allow for, we must reject the mandate.

Target group
The target group of our investment funds and wealth management are private and institutional investors with an investment time horizon of at least 7 years.
Because a long-term above-average investment return is more important to us than smoothing volatility through expensive hedging transactions, every investor should at least have an average risk tolerance.