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15.01.2015

The fitness check for investments with the BestInvest strategy

  • In the current climate of low interest rates, a growing number of people are looking for alternative, more promising ways to invest
  • Using the BestInvest strategy tool, Bank Austria runs a fitness check on existing investments to reveal how they are structured
  • An important part of this analysis is the subsequent test of risk behaviour based on a method developed by the Max Planck Institute
  • The level of diversification in the securities portfolio is compared with a set sample portfolio and evaluated using an easy-to-follow diversification indicator
  • The BestInvest strategy then generates a personalised investment proposal tailored to the investor's specific goals and risk appetite

In the current climate of low interest rates, a growing number of people are looking for alternative, more promising ways to invest. Using the investment fitness check, Bank Austria's investment experts first analyse the current status of an investment to reveal the overall make-up of the portfolio – from different types of savings through to insurance and securities investments.

"Our BestInvest strategy and the investment fitness check enable investors to develop a nuanced investment strategy based on individual risk behaviour," says Helmut Bernkopf, Bank Austria's Management Board member responsible for Private & Corporate Customers. "Our investment proposal defines and considers customer needs as far as possible. Employing new scientific and certified processes, we can provide a holistic analysis of individual assets and, by using a balanced reference portfolio from Bank Austria as a benchmark, an individually tailored investment strategy for our customers."

Broad diversification
Individual investment goals and requirements lay the foundations for successful investments. A nuanced analysis of the goals is required to develop an investment strategy. Bank Austria's BestInvest strategy evaluates an investor's risk profile using a test based on a scientific method developed by the Max Planck Institute. The bank then draws up a personalised investment proposal tailored to the investor's individual risk behaviour. A critical aspect of investing is ensuring stability with a broad-based portfolio to avoid potential risk clusters. The BestInvest strategy therefore covers several investment categories to provide additional stability for financial assets.

The diversification indicator
The diversification level of the securities portfolio is evaluated using a diversification indicator and displayed on an easy-to-read chart. The diversification indicator can be used to assess the current degree of risk diversification in the portfolio. One essential criterion is its focus in comparison with a balanced reference portfolio specified by Bank Austria. The diversification indicator has been certified by the Munich-based Institut für Vermögensaufbau (Institute for Asset Accumulation) in collaboration with the Department of Banking and Finance at the University of Zurich. On account of market volatility, Bank Austria recommends that investors repeat this investment analysis annually to keep their investment strategy up to date.

Investment funds provide opportunities
In the current climate of low interest rates, investment funds can form an important part of an investment strategy. They make it easy to invest in a large number of securities and asset classes, while an investment team takes responsibility for the professional investment of the fund assets. Finally, the BestInvest strategy shows which securities are suited to the new investment strategy. A comprehensive, extensive consultation is offered alongside the personalised investment strategy.

Enquiries: Bank Austria Press Office Austria
Matthias Raftl, Tel.: +43 (0) 50505 - 52809;
E-mail: matthias.raftl@unicreditgroup.at