Toby Triebel, Head Digital Investing at volt from Vontobel, looks at new trends surrounding investment apps, as well as at investment strategies for uncertain times.
There are currently a number of uncertainties in investment markets, and many investors feel unsettled. Which strategy do you recommend to investors?
Toby Triebel: It is understandable that the current situation would lead to insecurities, and that some investors will ask themselves: Is now really the right time to invest? Out answer to that question is: yes. There is never a wrong time to find intelligent investment solutions. The past shows us that over time, we see an eventual recovery, and many investors miss taking advantage of low points as the optimal time to enter markets. So for long investment horizons, getting started with investing categorically pays off. My approach is: Invest or top up investments on a regular basis – even in times of crisis. That is all the truer when prices are low, as they are now.
Our investment app volt offers two ways to simply and efficiently implement that approach. You can set up a standing order for fixed, recurring transfers (monthly transfers, for example). That way your money can be invested at regular intervals, enabling you to take advantage of fluctuations. The other option is to use volt cash. With this service, customers transfer money to volt in advance. After that, they can simply swipe to invest in their pre-composed investment portfolio just in time, so to speak.
Are stocks even the right asset class for this present time?
Stocks and stock investment funds have delivered very attractive returns, in spite of crises. As asset managers who actively manage investments, we are convinced that investments in stocks and stock funds as part of a diversified portfolio are the right strategy for investors who have long-term investment horizons.
Doesn’t it make more sense for investors to just save during these uncertain times, until things become more stable?
My answer to is most definitely: no. In times of negative interest rates and high inflation, savings steadily lose their value, so saving is not a sensible way to increase your wealth. That is why the piggy bank – or at least the concept behind it – is dead.
Nowadays, anyone looking to make more of their assets can no longer avoid investing. But because the minimum capital requirements for conventional asset management are often very high, not everyone can access it. Digital investment solutions open the door for anyone to access the stock market. Choosing which of these to use is difficult, because there are dozens of investment apps available. With some of them, investors are completely on their own. With others, you hand over full decision-making power to a robo advisor.
I can understand why many investors are not satisfied with those options. That is why the emergence of hybrid models which combine digital investment with personal consultation is a great development.
What is more, based on this knowledge, instead of stuffing piggy banks for your children, grandkids, and godchildren, you should invest on their behalf – ideally using the volt service from Vontobel, which has more than 90 years of experience in investment.
Trust is important in asset management, and is usually linked to personal relationships. That is why asset management is sometimes called a people business. Digital apps cannot fill that need.
On the contrary. Hybrid solutions like volt combine the best of both worlds: Personal consultation and comprehensive expertise with the newest technologies. Our app combines the know-how of 300 investment experts, direct access to experienced advisors, and Vontobel’s more than 90 years of investment experience.
Larger-scale surveys and many personal conversations have confirmed to us that customers – particularly those in the high-net-worth segment – are not interested in strictly-digital solutions. Digital service users also want to receive personal consultation. They want to be able to decide when and how that personal contact will take place. I can understand that, because I would want the same thing.
But trading apps cannot fulfill that need in practice. That is where we come in and offer digital investment services on a private banking level, in Vontobel quality.
What does the consultation you get with volt look like?
We have seen numerous examples of affluent people being pushed from wealth management into retail asset management services. In most cases, they can no longer get personal consultation, but are simply directed to call centers which cannot answer any specific questions about investments. It was from that less-than-ideal situation that the idea for volt was born.
Things work very differently with volt. By the second ring of the phone, at the latest, customers get a volt investment advisor on the line who is able to provide comprehensive consultation. The service is available in German, English, and French. Our investment professionals can, for example, help you put together your volt investment portfolio or explain the characteristics of specific investment products, or offer you holistic consultation as part of our financial evaluations. The final investment decisions are made by the customer.
There are now a number of robo advisors on the market. Apart from consultation, how is volt different from competing apps?
The developments we have seen are benefiting investors most of all, because competition encourages innovation. But the question about key differences and the right match for investors is not a trivial one.
With its hybrid service model, volt targets affluent individuals. An initial deposit of 25,000 francs (for volt invest) is required in order to gain access to Vontobel’s investment world. That world includes 300 investment experts and consultants, and more than 90 years of investment experience with a focus on active, sustainable investments. You get all of that in one app. Whether for regular investment or retirement planning with volt 3a, our customers get personalized investment solutions tailored to their needs. You can choose whether to use a predefined investment portfolio created by our experts, or whether to put together your own – by adding your choice of up to 15 investment themes, for example, or including alternative investments like gold, real estate, commodities, or hedge funds. The basic portfolio is also completely sustainable.
As we see it, these features combined with the consultation model makes this offer unique among digital investment solutions on the market today.
How does volt define sustainability?
Our basic investment portfolio has been designed to be completely fair and sustainable, as per Vontobel’s ESG guidelines, and it is also ESG certified. That means ecological and sustainability criteria are accounted for in a comprehensive way. Other investment themes with a sustainability focus can be added to the basic portfolio. In this way, we aim to make a valuable contribution to the world of the future, and we are deeply convinced that these kinds of investments will deliver above-average returns over the long term.
More on this topic:
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