Discover Germany, Issue 35, February 2016

Page 64

2_0_DiscoverGermany_Issue35_February2016:Scan Magazine 1

25/1/16

17:09

Page 64

Discover Germany | Special Theme | Top 2 Finance Advisors

Should one invest actively or passively? Only one per cent of fund managers consistently beat the market, which is an alarming result for active investment strategies. Are these fund managers skilful? Velat Özdemir, CEO of finance advisory firm Südinvest, has some answers. TEXT: NANE STEINHOFF I PHOTOS: SÜDINVEST

“John Kenneth Galbraith once said ‘there are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know’. Active asset and fund managers try to ‘win against the market’. Thus, they seek to perform better than their benchmarks. However, the evidence predominantly shows that their effort is without avail and that client funds suffer. Active fund managers don’t beat the markets; the markets beat the fund managers. Even according to studies, the returns significantly deviate from the benchmarks in active management,”explainsVelat Özdemir. Additionally, big differences between the fund yield and the customer yield exist because of the fund costs. This can have fatal con-

sequences for investors who plan their future with these concepts. So, what distinguishes Südinvest from other financial institutions? “Our understanding for capital markets is based on scientific facts. According to the efficient market hypothesis, no investor can outperform the market permanently; at best by accident. We don’t try to beat the market but rather provide the market return to our clients. Through this, our clients have significantly more capital. Additionally, we offer complete cost transparency and low fees. Each of our clients can be sure to receive a custom-made solution. All in all, we give our clients more paid life years,” says Velat Özdemir.

Südinvest’s services are trusted by private and business clients, as well as family offices. Their core expertise lies in retirement planning, asset management and inheritance planning. www.südinvest.de support@suedinvest.eu +49 (0) 89 206021 304

Portrait: Velat Özdemir, CEO of finance advisory firm Südinvest