See below how autumnal colors can help you solve multi currency problems.
Now another large Swiss bank has found it too much to deal with aggressive US regulatory tactics and shut down its US business. Here is what a recent Financial Times article entitled “UBS tells unit staff to avoid US visits” by Haig Simonian says:
“UBS has told members of its former private banking team responsible for rich US clients not to travel to America. The Swiss bank has also made lawyers available to the more than 50 bankers involved, many of whom have left UBS since it decided last November to wind down its cross-border private banking business for US customers. The move follows the recent indictment of one of the unit’s former senior executives, Bradley Birkenfeld, who US authorities have accused of helping a billionaire client evade taxes. Mr Birkenfeld has pleaded not guilty and his lawyers have made no public statement on the matter.”
I am very pleased that Jyske Bank, my banker for about 25 years has decided to stand by its American customers. The bank created a wholly owned subsidiary Jyske Global Asset Management (JGAM) that is registered with the SEC.
The changes, however, create many questions which I would like to answer at this site. Please send your questions.
As a financial publisher, I cannot give independent advice. I cannot even give you a personal reply nor comment on your specific personal investments or portfolio. I can, however, answer your questions here in a general way.
Here is the first question received.
JYSKE BANK QUESTION
“What is going on with Jyske Bank and their JGAM program which will make it more difficult to do multi currency sandwiches unless one has invested at least 1 million with the bank. As I understand it, my portfolio will be managed without my input which does not make me feel comfortable. What is your take on this?”
JYSKE BANK ANSWER
I have spent hours reviewing how JGAM will work with Thomas Fischer.
First, let me clarify several points…the first being that only Americans will use JGAM. For non Americans it is business as usual at Jyske. This will have a pretty big impact on my business since I have so many non US readers. Our site ranks well for visits in Ecuador, Canada, China, Germany, New Zealand, Singapore, United Kingdom and Mexico as well as the USA.
This means I’ll have to write everything twice once for us Yanks and once for the rest of the world.
Second, minimums have not changed at all. For some time the minimum has been $50,000 to open and account and $100,000 is minimum for a multi currency sandwich…not 1 million.
Though JGAM will manage each portfolio on a discretionary basis, the client still has a great deal of input on how they will manage each account.
Jyske has a number of portfolios ranging from low risk – medium risk – high risk and speculative.
These portfolios are then again split into portfolios with and without US securities.
Then the accounts are again split based on assets under management.
For example, clients with less than $200,000 will have a different diversification than larger accounts.
Every portfolio is monitored and tracked on an individual basis. There is no specific JGAM portfolio so all investors will have their own regular performance up-date.
The JGAM investment committee will meet once a month deciding on the tactical weight of the asset classes and the underlying investments.
When a client joins, the Jyske account manager will work first to help the client decide on a risk profile. Once this is decided, Jyske will be invested in one of the 16 options above. Every investor’s portfolio will be designed and will change according to the time of entering the portfolio.
Here are the latest recommendations as of late May 2008 of the speculative NON US dollar portfolio.
Asset type Recommendation Tactical weight
Fixed Income Underweight 20
Equities Neutral 60
Alternatives Overweight 20
Cash Neutral 0
USD 7.2% Porsche 01.02.2049 3%
USD 7.875% Turanalem 02.06.2010 2%
USD 8.5% Titan Petrochemicals 18.03.2012 1%
EUR Var% Bombardier 15.11.2013 3%
GBP 8.7% Cable & Wireless 06.08.2012 1%
AUD 5.5% Rabobank 27.01.2010 3%
BRL 12.5% Brazil 15.01.2016 2%
HUF 6.75% Hungary 12.10.2010 2%
TRY 15% Intl. Bank Recon 15.07.2009 2%
ISK 8.5% Rikisbref 12.06.2009 1%
CHF Novartis 4.2%
EUR Siemens AG 4.2%
EUR Adidas AG 4.2%
DKK Carlsberg A/S 4.2%
EUR EDF Energies Nouvelle 4.2%
DKK NKT Holding 4.2%
DKK Neurosearch 4.2%
EUR Bayer AG 4.2%
EUR L’Oreal 4.2%
SEK Hennes & Mauritz AB 4.2%
Latin Equities Mutual Fund 4.0%
Chinese Equities Fund 4.0%
Indian Equities Fund 4.0%
European Equities Fund 5.0%
USD ETFS Crude Oil – CRUD LN 10.0%
USD ETFS Aluminium l ALUM LN 5.0%
USD ETFS Metal Secs Phys. Gold – PHAU LN 5.0%
This looks like an interesting portfolio, and in future messages we’ll be looking at
the equities in this portfolio. Plus we will review the other three (high medium and low risk) portfolios.
I believe that Multi currency investing is a must in these times of inflation. Using international investment managers still has main advantages. First, this provides some excellent asset protection. This also provides access to more experienced multi currency managers with different points of economic and world view than anywhere in just North America.
This also provides some privacy.
May I add one more word on privacy? If you are a law abiding citizen then an overseas account gives you as much privacy as you need. If you break the law and have almost any government looking for your financial data, then no system or structure you use is enough.
I have not touched on this subject for years because this is such old news…but knowing we have many new readers…let me repeat what I shared with readers clear back in the 1990s. “Bank privacy is dead”.
Here are just a few of my articles at this site in the archives from the 1990s and early 2000s. Please read them carefully.
Yet here is one more brand new story….about what is known as the most private place in the world…Liechtenstein.
Here is a direct quote from a February 22, 2008 BBC article entitled
“Liechtenstein fury at German tax snooping” by Steven Rosenberg
“Liechtenstein also has the reputation of being one of the most secretive tax havens in the world.
“Just ask the Organisation for Economic Co-operation and Development.
“This financial watchdog says Liechtenstein is one of only three states left on its blacklist of ‘uncooperative tax havens’ (the others are not a million miles away – Monaco and Andorra).
“Liechtenstein this week attacked the authorities in Berlin for buying information on German businessmen clients that have bank accounts in the tiny Alpine principality.
“Germany has launched a tax evasion investigation using the data, which was supplied by an anonymous informant who was reportedly paid 5m euros (£3.75m; $7.3m). “
So I will say this again. Please for your sake, don’t break the law anywhere…anytime. This could come back to haunt you in unexpected ways.
Here is an example. The data the German authorities obtained about accounts in Liechtenstein covered people from around the world…not just Germany…so the Germans began sharing it.
According to my European banking sources, only one European tax authority turned the data down…the Danes. They believed that since this data had been illegally obtained it should not be used.
One reason I have banked for so many years with Jyske Bank is the same reason why I live half the year in Ecuador.
I like Jyske’s services, their very reasonable fees and their solid banking foundation…but in addition I like the Danes…feel an underlying honesty, sense of fair play and sound judgement. The have never let me down which is why I am not surprised that they worked for several years setting up this structure so they can continue to serve Americans…when so many other banks have cut us Yanks loose and run.
I expect that the service JGAM will provide is still a work in progress and have noted the people there questioning, adapting and smoothing out a new system.
Everything I have seen to date suggests that I will be happy with this new program
because the people there like I have always seen seem focused on giving a service that is safe, wealth preserving, ground breaking and easy for the customer.
I’ll be adapting our multi currency course to reflect the changes and will keep you informed about new ways we can continue to learn about this mysterious, interesting and profitable world of multi currency investing.
I am not paid a penny for writing this about Jyske Bank and have always been able to write that I keep them as my bank simply because I like them the best of all banks I have used.
I can continue writing this and hope until next message that you find all these qualities with whomever advises you on your finances, savings and wealth.
You can join me with Thomas Fischer of JGAM at our October 2-5 lifestyle International Investing & Business Made EZ North Carolina
at our house on the farm.
Here is Thomas Fischer talking with a group at a previous course.
You can still make to our June 19-21 Ecuador Shaman Tour
See dates for our Autumn courses and tours:
Ecuador Coastal-Quito Real Estate Tour
We’ll see properties in this developmet and stay at and walk that beach below.
Learn about this Imbabura real estate for sale at Cotacachi Real Estate at San Miguel