"Trust is not built on perfect forecasts"

Maximilian Spiess
Managing Director Flossbach von Storch Invest S.A., Zurich Office

 

Mr. Spiess, many people regard Flossbach von Storch primarily as an asset manager for private clients. How has the company positioned itself in Switzerland — and how does the Swiss market differ from that in Germany?

We have been operating in Switzerland since 2006. Zurich was our first location outside our home market. In Switzerland, the focus is on collaborating with banks, institutional investors such as pension funds, insurance companies and foundations, as well as family offices and external asset managers. Swiss investors are more closely aligned with the capital markets, more diversified and more comfortable dealing with securities, whilst German investors are traditionally more cautious and more focused on traditional forms of saving. In an environment characterised by inflationary trends, this poses a long-term problem for Germans.

Which client groups does Flossbach von Storch focus on in Switzerland — high-net-worth private clients, external asset managers, family offices or institutional investors?

We are fortunate to work with clients from all the groups mentioned – although private clients are looked after directly by our colleagues in the Private Wealth Management division in Cologne.

Which products and solutions are currently driving particularly strong growth for you in Switzerland?

Since the company was founded, we have stood for an active, benchmark-independent investment approach. In Switzerland in particular, we are seeing considerable interest in our flexible bond strategies – and we are delighted about this. Naturally, our long-standing and, above all, very positive track record helps here.

Swiss investors are regarded as discerning, long-term oriented and risk-averse. How does this shape your investment strategies and client advice?

The Swiss investor mindset fits very well with our DNA. Anyone who thinks long-term, focuses on quality and manages risk consciously will find much in common with our investment philosophy. Rather than chasing short-term trends, we concentrate on preserving wealth across market cycles and generating adequate returns over the long term.

What role does active asset management still play today — particularly in the face of competition from passive investment products?

Both approaches are needed, now and in the future. ETFs are suitable instruments when it comes to tracking individual markets cost-effectively. Active management, on the other hand, is required when investors expect or desire more than just market returns: first and foremost, risk management, capital preservation, flexibility and the ability to capitalise on mispricing. Let’s take bond funds as an example. Unlike equity indices, where the most successful companies are given a higher weighting, bond indices give the largest issuers the greatest weighting. Furthermore, rebalancing occurs with a time lag; in turbulent market phases, this is a disadvantage. Many ETF investors are unaware of this. Active bond managers, on the other hand, can focus specifically on quality and capitalise on market setbacks in a timely manner, independent of any scheduled rebalancing dates.

Which trends will have the greatest impact on Swiss asset management over the next five years — regulation, technology, consolidation or something else entirely?

I am convinced that AI will bring about a number of changes over the next five years. Access to information will become even easier, and the depth and transparency of analysis will improve. In sales, however, personal contact remains essential; investors are looking for reliable points of contact who have their own opinions in an environment of AI-supported decision-making – and this will remain the case in the future. Another trend we are observing is this: on the one hand, large, scalable platforms with global reach; on the other, specialist firms with a clear investment identity. For providers lacking sufficient scale or clear differentiation, it will become increasingly difficult to position themselves successfully.

How is Flossbach von Storch positioning itself amidst these structural changes in the industry?

We are engaging intensively with these issues and utilising AI wherever it helps us or promises to deliver added value to our investors. However, it is also important to remain true to our investment philosophy and the values it embodies.

And on a personal note: What continues to fascinate you about asset management — particularly at a time when markets and investor behaviour are becoming increasingly complex?

The markets may be becoming more complex, but investors’ expectations have remained remarkably consistent: they want to understand what is happening to their investments – and they want to be able to rely on their partner. Our clients value clarity, transparency and honesty in our communication. Trust is not built on perfect forecasts, but on reliability and a transparent approach.