Bernstein Financial Services
The Digital Asset Manager With Active Trading
Based In Germany
The asset management company and the account-holding broker are domiciled in Germany.
Already possible from 10,000 euros for the speculative investor.
You invest without notice periods. So your money is always available.
Simple. Online. Digital.
You open an account online in your name and legitimise yourself conveniently online at the computer or via mobile app.
You complete the asset management contract online so that Bernstein Financial Services can trade your account.
You can now follow the trading online via your smartphone conveniently via app.
In order to benefit from short-term events, the strategy of BFS relies on several decisions per day.
Unlike traditional digital asset managers that only adjust ETF weights on a daily basis, BFS is actively speculating on price changes.
Deliberately focusing on the bull market and the bear market
All classic asset management companies try to reduce risks in falling markets, but always incur losses.
Thanks to the possibility of participating in falling prices, Bernstein Financial Services can achieve a positive return for its clients even in times of stock market crashes and other turbulent market phases.
Many investors already have a stock portfolio or are indirectly invested in equities via funds or life insurance policies.
The investment of BFS therefore deliberately aims at a low correlation to these investments and, according to scientific findings, is therefore an essential and important building block for any classic portfolio.
In addition to your access via smartphone app, you will automatically receive an account statement via email about the daily activity in the evening.
At the end of each month, you will also receive a statement of all activities in that month by email.
Expert tip: Caution, risk with active investments.
A high return potential with active investment decisions is always accompanied by the following risks.
- Extreme fluctuations in the value of the portfolio are possible.
- The performance can develop negatively up to the total loss of the capital.
- Investors must be very willing to take risks.
- Past performance is no guarantee of future performance.
Marc Pötter // Certified International Investment Analyst (CIIA) and Trader at Smart-Markets
Invest Like The Pros
Long & Short
What was previously reserved for institutional investors and hedge funds is now possible for every risky investor:
Participation in rising and falling prices of stock indices such as the DAX.
Professional Risk Management
An algorithm controls the risk of each trade. This ensures that the correct amount of each trading signal is executed in your account.
Developed By Experts.
The active trading strategy of Bernstein Financial Services was developed in close cooperation with the professional traders of Smart-Markets, who look back on over 20 years of experience in private banks, brokers and as traders and developers and are certified worldwide (Certified International Investment Analyst (CIIA), Certified European Financial Analyst (CEFA)).
Safety is self-evident.
As a digital asset management company, it goes without saying that the highest security standards are observed in all areas.
As a regulated financial services institution in Germany, Bernstein Financial Services is a member of the Compensatory Fund (EdW).
Bernstein Financial Services has NO access to your account or capital as an asset management company.
You maintain your account with the Bernstein Bank in Munich, which is also regulated in Germany and is a member of the Compensatory Fund EdW.
Bernstein Bank customers pay into a fiduciary collective account with a German deposit-taking bank, which is also a member of the Association of German Banks (BdB). This means that the client deposits in this trust account are additionally secured by the BdB. The security limit set here is 100,000 euros legally and currently more than 40 million euros per customer via the BdB. Further information can be found on the following page:
Asset management Bernstein Financial Services is regulated and monitored by the German Financial Market Supervisory Authority BaFin. Bernstein Bank is regulated and supervised by the German Financial Market Supervisory Authority BaFin and the Bundesbank.
Active Management At Low Cost
The costs for asset management are as follows
2,4% p.a. + 20% performance fee
The management fees are charged at 0.2% per month. The performance fee is always calculated only on new account highs (High-Water-Mark). As a result, asset managers always have the greatest interest in achieving the best possible return for you.
In comparison, the costs of an active investment fund, e.g. with a holding period of 3 years:
3,17% p.a. + 10% performance fee (e.g. ISIN: LU0952573482).
(Costs p.a. consist of the issue premium and the management fee.)
Perfect Diversification For Classic Portfolios
The modern portfolio theory of Harry M. Markowitz belongs to the absolute standard repertoire of every asset manager.
In 1990, he was awarded the Nobel Prize for Economics for his findings together with two colleagues. Today, the investment decisions of large pension funds, banks, fund managers and other capital accumulators are based on his teachings.
The more independent the investments are of each other, the better for the overall portfolio.
(Recommendation by Nobel Laureate Harry M. Markowitz)
Most classical and also digital asset management are strongly correlated with the global stock market. Many investors and traders already own shares, funds or investment-linked life insurance policies. This can lead to undesirable cluster risks, although you want to achieve risk diversification with different investments / asset managers.
Therefore, Bernstein Financial Services is one of the few asset managers to pursue an active strategy that is relatively independent of the classic stock market.
Thus, an investment in the strategy of Bernstein Financial Services according to Markowitz is a very good addition to classic equity investments, funds or asset managers, as a good risk diversification is achieved.
Expert Tip: Caution, Risk With Admixtures.
Even if, in terms of portfolio theory, Bernstein Financial Services' investment is a very good addition to classic stock portfolios, it remains a risky investment and should only be made with risk capital and a small portion of your total assets.
Similar to hedge funds, which are very popular with institutional investors, Bernstein Financial Services pursues an active strategy, where there can be significantly higher fluctuations in both directions.
This can also lead to high negative fluctuations.
Thomas Busch // Trader and Founder of Smart-Markets
Frequently Asked Questions (FAQs)
What are the risks associated with this type of asset management?
As with any investment in a risky product, a loss up to a possible total loss cannot be ruled out.
This investment consciously relies on an active investment decision with CFDs. Therefore, extreme fluctuations in the portfolio are possible, which requires a very high risk appetite from you. Past performance is also no guarantee of future performance.
The results of this investment are primarily dependent on the traders and the active strategy. As with good decisions, the investment generates positive returns in both rising and falling markets, bad decisions generate negative returns. This is also the case when the overall market is positive.
Therefore, you should only invest capital that can be lost if necessary. Of course, the goal of Bernstein Financial Services is to achieve a good and positive result for you, but it is important that you understand the risks of the investment.
Is Bernstein Financial Services an active asset manager?
Yes. It specialises in active trading (day trading) in liquid markets and thus clearly occupies a niche that was otherwise reserved for very wealthy investors or hedge funds.
Both rising and falling prices are speculated on, in order to be able to achieve a positive return even in times of bear markets on the stock markets.
How is Bernstein Financial Services regulated?
As a German asset manager, Bernstein Financial Services is regulated by the German Financial Market Supervisory Authority BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) and the Bundesbank.
How transparent is the investment?
From your smartphone via app or from your PC, you can follow all activities in real time.
In addition, you will receive a statement of account by email in the evening (if there is activity that day) and a monthly statement of all activities for the entire month.
Why are there no risk classes as with other asset managers?
The developer of modern portfolio theory and Nobel laureate Harry M. Markowitz and James Tobin have scientifically proven that the risk propensity should be independent of the investment strategy of a risky portfolio.
The risk propensity of an investor is only taken into account by the amount of the investment in a risky investment.
Therefore you decide simply over the height of your contribution whether you would like to invest rather more or less in relation to your fortune.
This also has the advantage that you only pay fees for the invested risk capital and not, as with many asset managers, the risk-free or low-risk part is charged with fees.
How long should the investment horizon be?
Even if it is an active investment with short-term investment decisions (trades), only probabilities are traded on the market. The investment horizon should therefore be at least one year or better longer.
Nevertheless, the investment is completely flexible and you can cancel at any time if you need your money.
Can I stop at any time?
All fees are calculated on a monthly basis and if you pay out after less than half of a month, this month will not be charged at all.
Which markets and products are traded?
Mostly highly liquid markets such as stock indices (e.g. DAX) are traded. Short-term movements in the market are exploited, which usually leads to several decisions / trades per day.
CFDs (contracts for difference) are used as a product, which can be traded very inexpensively and transparently and have long been used by institutional investors abroad.
This is done via Bernstein Bank in Munich, which as a German broker is fully regulated and monitored by the BaFin supervisory authority.
Why do you pay an management fee and a performance fee?
As this is an active strategy, traders should have the same interest as you: To generate as good a performance as possible. This is guaranteed by Bernstein Financial Services sharing in the success.
The management fee serves to cover the ongoing costs of asset management, which must meet very high regulatory requirements.
The BaFin, as the supervisory authority, welcomes the combination of management fee and performance fee so that asset management has on the one hand an incentive to achieve good performance (performance fee) and on the other hand sufficient constant income to survive bad market phases without incurring high risks (management fee).
(see Handbook of Asset Management by Schäfer/Sehte/Lang, 2nd edition, §11)
Is my money safe?
As a regulated financial services institution in Germany, Bernstein Financial Services is part of the Compensation Scheme (EdW).
Your account is being hold by Bernstein Bank in Munich, which is also regulated in Germany and is a member of the EdW.
Bernstein Bank clients pay into a fiduciary collective account with a German deposit-taking bank, which is also a member of the Association of German Banks (BdB). The client deposits in this trust account are thus additionally secured by the BdB. The security limit set here is EUR 100,000 by law and currently more than EUR 40 million per client via the BdB. Further information can be found on the following page: BdB.