Advinans’ basic view is that very few fund managers over long periods of time beat their benchmark index – the financial market is a zero-sum game. What we believe to be important is low fees and that a saver gains access to different markets and exposures in order to spread the risk. We have set up an effective process to maintain low fees since we buy one investment fund per required exposure – we are able to keep the fees low since one supplier gets all the volume per exposure.
Advinans’ view is that our range of investment funds covers the exposures established in financial research. In addition, within this range of investment funds, we have included ethical and sustainable funds based on a clear logic.
There is currently a great quantity of platforms for securities trading available in Sweden. The trend is to have the greatest selection possible, which we believe is not in the consumer’s interest, quite the contrary. A range of nearly 1,000 investment funds makes it more difficult for the majority of people, while the majority of the investment funds are way too expensive, high fees suit the bank/online broker/insurance company since they get back approx. 50 % of the fee as a commission from the investment fund companies (commission that Advinans pays back to you, which is why the same investment funds are up to 75 % cheaper with us).
There are, however, customers that seek active management or specific exposures (e.g. real estate and high yield fixed income funds). We have therefore made a thorough analysis and selection of active funds based on the premise of generating excess returns (we want to be clear that our analysis does not guarantee that an investment fund will generate future excess returns, just that the conditions exist for it to do so). We have also procured investment funds that provide exposure to specific markets (e.g. real estate, high-yield bonds, investment companies). By not working with commissions we are able to offer more niche funds at an attractive price.