Ncp: Asset management without conflicts

Novum Capital Partners

When banks have to sell their own products and asset managers are interested in commissions, the question arises: who is really advising in the client’s best interests? Novum Partners SA Geneva has found an answer to this dilemma.
The multifamily office Novum Partners SA, Geneva, is deliberately positioning itself as an independent player in the Swiss financial landscape. With no financial products of its own and no ties to specific banks, the company, founded in 2018, focuses exclusively on the interests of its clients. This philosophy seems to be working: with over 5 billion Swiss francs under management and recently named ‚Switzerland’s best wealth manager‘ by Euromoney, the Geneva-based company has established itself as a serious alternative to traditional providers.
Why independence is so hard to find
Imagine you go to a car dealer. Of course, they will sell you the car they have on their lot. Not necessarily the one that would be best for you. Much of the financial industry works in a similar way. Banks sell their products. Asset managers collect commissions from fund companies. Independent advice? Rarer than you might think.
That’s because of the system. Anyone who offers free advice has to earn their money elsewhere. Often by selling high-margin products. Or through commissions from product providers. Both models lead to what economists call ‚conflicts of interest.‘
The hidden costs of dependent advice
Conflicts of interest cost money. Sometimes directly through overpriced products. Often indirectly through suboptimal investment portfolios. An example: Structured products often have high profit margins for the bank offering them. Accordingly, they are popular. Whether they are optimal for the customer is another question.
Novum Partners SA, formerly known as Novum Capital Partners SA, has deliberately chosen a different model. No proprietary products, no commissions from third parties. Instead, transparent advisory fees. Sounds expensive? It is often cheaper than you might think.
Independence: a luxury or a necessity?
Some clients ask themselves: Do I really need independent advice? The answer depends on the complexity of the situation. Those who only have a simple portfolio managed may not notice the difference. For complex family office services, however, independence becomes a decisive factor.
A wealthy entrepreneur is selling his life’s work. The bank offers him three different investment options. All three are in-house products with corresponding margins. An independent advisor looks worldwide for the best solutions. Who will achieve the better result?
Asset allocation strategy without product pressure
What is the optimal asset allocation? Experts have been arguing about this for decades. There is no answer. But there are bad answers. For example: ‚Buy our new product, it’s right for you.‘