FAQ

An independent Swiss company composed by professionals from the financial industry.

To protect investors' interests due to:

• Too many abuses
• Lack of transparency (costs and risks)
• Disparity of treatments (costs and services)
• Excessive compensations mostly sponsored by fees paid by investors.

There is no risk. Clients’ wealth always remains within the clients’ institutions. BREAKFEE only works based on provided information (balance sheet, spreadsheet, transaction reports...etc).

 Independent (no conflicts of interest, no retrocession)

Expertise (professionals from the financial industry)

Transparence  

We analyze your financial situation (assets & liabilities).
We consolidate your data (return, risks and fees).
We optimize your return by reducing fees and controlling risks.
We provide solutions with existing and/or new banking relationships.

Fees are:

• Commissions (buys & sells)
• Fixed expenses (mandates, custody fees, administration fees)
• Others/Hidden expenses (management fees, structured products, forex)

Because it is your money that is taken years after years regardless the generated performance.
A 2% fee per year (the average cost) turns out as an "unrealized gain" of 22% of your wealth after 10 years. It grows to 50% after 20 years and 83% after 30 years.

Reducing your fees by half generates an additional net performance of 23% on average after 20 years! Regardless the level of your wealth and the realized performance.

We scrutinize every fee/commission you pay. We negotiate or provide alternative solutions to reduce margins, leading to higher return for you.

For more in depth details please contact us.

It is a potential loss of part or the entire of your wealth.

Risks stand at the levels of:

• each investments (market risk, specific risk, credit risk, currency risk...etc)
• the portfolio (risk of concentration, risk of correlation)

In order to reduce losses in case of market changes. If your investments react similarly to market movements, it turns out as if you were holding a single stock or having all your eggs in the same basket.

Diversification is key, but controlling and managing your risks of concentration/correlation is essential.

We analyze and report risk exposures at the client’s portfolio level.

The report includes:
Risks of concentration ; overexposure to specific factors (i.e. countries, currencies, sectors...etc), putting wealth at risk in case of unfavorable market conditions.
Risks of correlation ; different investments reacting similarly.

Once these risks highlighted, clients are in a better position to control their allocations accordingly to their risk profiles.

Equities
Fixed Incomes
Funds (Mutuel or Hedge)
Structured Products
Private Equity
Currencies
Countries
Interest rates
Sectors

It is to prioritize someone’s own interest (i.e. the banker) versus someone else interest (i.e. the Client).

Breakfee denounces and contends the following 3 conflicts of interests:

Always selling more!
A banker’s compensation is directly linked to what he/she sells.
Churning (buys and sells) is a guarantee for paying more fees and a better bonus for your banker, but not especially a better performance for the investor at year end.

More risks in order to perform!
A Fund Manager is compensated based on the performance he/she generates.
It can turn out as too much risk is taken in order to generate more performance. If things go wrong the only one suffering is the investor.

Influenced by retrocessions?!?
Bankers selecting Funds by interest.
In order to promote their Funds, some Fund Managers give retrocessions. It can lead to bias investment proposals (by interest more than by quality).

Throughout the financial crisis, banks have dramatically reduced their workforce.

There is an inadequacy between the decreasing number of employees and the increasing number of clients (to increase profitability) which negatively impacts services quality.

All requests are treated confidentially. Clients control the relationship and decide the level of Breakfee’s involvement with potential counterparties.

Breakfee’s directors are members of the "Swiss Financial Analysts Association" (SFAA) and comply with its Handbook of Best Practice (www.sfaa.ch)