Differentiation between Portfolio Funds and Asset Management Mandates from the perspective of client advisors and from a customer approach

Abstract

In a dynamic and competitive financial service industry, it is inevitable to provide several investment solutions in order to satisfy a great variety of customer demands and needs. As such, a local Swiss bank launched Portfolio Funds a few years ago. This product should not be regarded as a direct substitute for the Asset Management Mandate; therefore, the launch must not influence net new money figures of the mandate category. Due to the fact that various interconnections are assumed, the differentiation between both investment solutions is examined in this paper.