Last December, the Finann group Partners filed a license for a new pension company with the Czech National Bank. The financial advisor wants to start a pilot operation with a selected group at the end of the year. According to the director and one of the group’s partners, Petr Borkovec, there are quite good reasons for the domestic supply of pension funds.
When do you want to offer your pension company to clients?
We know that we will receive permission from the Czech National Bank to establish a pension company in the second half of the year. Then we have to re-enter the allowance for pension funds. This means that we will start pilot operation at the turn of 2020 and 2021 at the earliest. Sharp operation in ptm year.
How do you offer funds to people?
These funds. The obligatory conservative fund, which is the end, gave two funds with a developed and dynamic investment strategy.
How much investment do you sweat?
The total investment will be an estimated 200 million crowns.
What leads you to offer your own pension funds in such a short time after the launch of Simtech’s insurance company?
The fact that in pension funds the people have about half a trillion crowns and long-term and regular send them and gave pensions. And even after practice, it shows how much this whole area is invested in the Czech Republic neglected. As in this area, banks, pension funds, but also advisers do not take care of clients.
Do you think you don’t care?
Because the fees for managing assets in pension funds are very low. In practice, this leads to the fact that banks that own pension companies are not interested in staying with some pension funds. Likewise, commissions for financial advisors and intermediaries in the sale of pension funds are set very low. Also, don’t worry about having fun with some pension funds. The result is that 90 percent of the people in the Czech Republic who still live in the old transformed funds, which are not suitable for them.
Not suitable for n?
Because don’t give them a day’s return on invested pensions. The people are de facto more important about the substantial contribution of two hundred. When you take into account that inflation is somewhere around two and a percent, in five, ten, fifteen, twenty, thirty and more years, after the people have been so happy, they will not have much left of this contribution. This is because the income from the transformed funds, namely to go when they can, is around one percent. often not even.
But the Czech people are afraid to invest more. And the transition from old transformed funds to employee funds is anything but a quick and easy procedure. Do you think that you can do it?
Yes, you’re right. People are satisfied with the fact that their pensions and money, or their employers, contribute to this. Jenome penzijn spoen is bh for a long time. And it’s not a savings, but an investment. And you have to invest to make the investment pay off. Moreover, in the long investment horizon of 20 and 30 years it is not so vda. It is up to us to explain this to people. So that their last pension into pension funds is not just a matter of delay. Especially when pension funds are due to their contribution today, the most suitable tool to secure the insurance. People can pinst much more, not pin them. The problem, however, is that no one knows this and no one provides them with service for this product for a long time. To prompt them and make them feel better. Changing this is the reason for starting a pension company.
You mean, like, people like that?
I think so. Consider sending pensions to a pension fund for several decades. This is a long-term investment horizon on which you can very solidly evaluate the invested pension. But that’s a must invest catch. And how is the practice? In Czech, we play sad championship. Our pension funds have the least investment bags in the developed countries. At the same time, the first shares in m can increase pensions. And especially with long-term investment. In the first years of investment, therefore, the shares must be in the first place. Investing in a bond, as we mainly invest in, makes sense at the end of the investment. When u need to protect the entrance. In NS, the bond is invested from the arrest to the end. But it is not suitable for people. Last year, bond yields averaged 1.3%, shares averaged 20%, and technology stocks averaged 40 percent. Inflation was 2.8 percent.
On the other hand, bonds are (almost) certainty.
Yes, but as I said, there is certainty when the investment will be paid off, but you have to invest dynamite in the arrest to create a return. And with such a long-term investment as a pension savings, you can create a great deal. But again, you have to invest a catch. Our first goal is to teach this to clients. We want to get them transformed funds, because in them they just pay for pensions. Do not even surpass inflation here.
In the press conference, you stated that you want to shine the first of the fund to a renowned manager from the USA. For?
The reason is more. The distinctive pension fund on the domestic regulated market is tk. But it works too. And we want to do the first time by offering our clients above-standard personal service and above-standard first-time retired clients from a well-known renowned manager from America, who manages the pensions of millions of American retirees. From America, the reason that pension funds have a long tradition there. And they are the best at the world. We want to add above-standard management to the employee funds, and thus long-term return.
Now don’t have a pension fund?
No. The managers of the local pension funds operate in such a way that their pension company belongs in the vast majority of banks, and this bank manages the field of investment packages from which they have to choose. This is because the mother of their bank decided to do so abroad. And so buy it first. He chooses a package. Nedv went out into the world. To act because he doesn’t have to, for a kind, because they don’t have to approve of his choice. The administrator of the large US fund, on the other hand, is more complex. It is far in t competition, so I try to make the investor interestingly appreciated. And so he manages a lot in the volume of pensions, which is why he has to have a view of the world. This is because, for example, you can’t stand with EZ, for example, it is also below its spreading ability.
This does not know the time for those who send pensions to Czech pension funds.
But it is so. And in a way it’s a mountain ride. Assume that the bank that owns the pension company is most interested in providing credit, cards, services and services. He spent the most on it. Then I want to go and offer my share funds. And because the regulation of pension funds is very low, so logically I do not want to deal with quality management of pension funds.
Do you deal with km from foreign sprvc?
Let’s keep that surprised. Especially until it’s closed. Let’s look among the spades. Globlnmi jednikami. And I’m on very good trips with one of them. Let’s set up a fund to manage trillions of US dollars. This means that they have a significant responsibility, not domestic managers. And so they have a much better overview of what to offer for investment. And they have a nice approach to them. This leads to efficiency and diversification as well as long-term input or volatility.
And such an administrator will have to manage the pensions of Czech investors
Urit. First, in Europe, the operation and pension savings bank in R has great potential. This is the easiest way for them to get involved. He will get paid for the fact that our clients will be able to ride with American investors. The sprinkler invests anyway. Pro could not manage the pensions of domestic investors? For this, investors should add to the fact that they are investors and financial terminology from the developing market. On the contrary, we want to mediate for them so that they also have the best services.
What should your cooperation with a foreign administrator look like in practice?
It will be a strategic collaboration. The American manager will supply his know-how through investment in the event and we platform and license. Thanks to this, we will offer his know-how to domestic investors through the pension company we will own, and we will bear all responsibility for it. We would procure investments in bonds ourselves. That’s because we can do it for a very long time. Last year, our bond funds yielded over 4.5% and were most likely on the market.
The new news you reported is a new bank. Don’t go there for a license, but get ready to do so. Pro do you want mt bank?
It took a logical step. We are a clear leader in financial consulting. We have 600 thousand clients and we provide them with a comprehensive, individual and very personal financial service, using a partner from the market. We can thus very quickly and efficiently build our own products and financial institutions. These are such private features that we refer to where something doesn’t work right for clients or where our existing partner doesn’t pay or something is expensive. We have our own investment company with six mutual funds completely without entry fees and a low management fee. We have a very spn real estate fund. And we built Simplea a life insurance company with the simplest and most risky life insurance company and a guarantee of insurance benefits to cover all life situations. And very efficiently without corporate contributions, on the latest technologies and without the need for hundreds of people. Take it too.
But do you want to be different? A lot of new banks have sprung up here.
We want to be different, we are today. Do not change and just jump to improve our client service. We want to offer our clients a truly comprehensive service, which means getting their investments, insurance of a kind and putting products into their mobile banking. And here, for example, the bank does not offer that market. However, we will still remain primarily advisors and we will be the first bank that will not lock clients only in the bank, but will offer them comprehensive advice and products throughout the market. This means that if we see that some other bank offers a product that is suitable for our client, they will arrange it for themselves and see it in their application.
But why should a client go to your bank for such a product, for them directly?
Because his current bank doesn’t like him. We want to build the bank primarily as a modern banking technology platform. It is likely that this will be the first cloud bank on our market. So we want to crush our values and focus on creating wealth for our clients instead of their unhealthy debt. We have great ideas that can do this and support our consulting philosophy.
When would you like to open the bank?
We would like to start on January 1, 2023, but there is a long way to go to this day.
And are you sure you can handle it? Even banks innovate as much as they can.
Build a bank is a capital and personnel nron. But we have built a financial group with a turnover of two billion crowns and we will grow rapidly in the coming years. We have several hundred great people at the headquarters, a lot of activity at umme and we have 100 branches and 1700 advisers. I mean, if anyone can do it, so can we. And as for the other banks, they are also our partners. We know that the time is right and we will work with them on that. We are building a slightly different promise and I think that several hundred thousand of our clients will appreciate it and other banks will not even do much harm. It will be a suitable bag for us to build a Czech bank, which will also be created on a green field. This means that no one from abroad, as is the case with most domestic banks, will know what and how to do. How to use software companies. It will not force pan-European internet banking. executioner, what we may, we must not. What nm approved or disapproved. What and how we should sell, it will simply be our bank for our Czech clients, whom we know. And that’s a great deal.