the competent fund management company
TRANSCRIPT
The competent fund management company
QUANTIS Investment Management Zrt. employs a multi-manager approach that is common in developed markets but unique in Eastern Europe. Only the funds of portfolio managers selected through the Q-Select process can be included in the "fund of funds" arrangements. The selection process includes a personal interview with the portfolio managers, be they in any capital market centre of the world. Owing to its unprecedented growth rate, the assets managed by the company reached the HUF 67 billion mark in the first year of its operation.
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The competent fund management company
The unprecedenTed success of an innovaTive business model and a rigorous selecTion sysTem in hungary
Since its launch in 1999, BROKERNET has sold unit-linked life insurance policies worth more than HUF 120 billion. With this volume, it has indirectly become Eastern Europe’s major buyer of investment funds. The main driver behind the establishment of QUANTIS Investment Management Zrt. was to create a professional team within our group who are able to expertly select funds and pick the best products to be included in our unit-linked portfolios. QUANTIS Zrt. embarked on this mission at the end of 2008 using an operating model, multi-manager fund management, that was barely known in Hungary at the time, but had dem-onstrated its viability in numerous countries throughout world. Only investment funds that measure up to the rigorous standards of the Q-Select scoring system, developed especially by QUANTIS, are included in the QUANTIS Zrt. managed fund of funds. This unique screen-ing system selects funds from the available international investment fund universe based on exceedingly stringent quantitative and qualitative factors. In addition to a prudent selection pro-cess, QUANTIS Zrt.'s investment policy is also exceptionally return-oriented, which means that it strives to achieve the highest possible returns for investors while taking account of and optimiz-ing all risks. We are continuously expanding our offering; currently we manage ten investment funds. The successful introduction of so many funds counts as an outstanding accomplishment in the Hungarian market. The value of assets under management since inception in January 2009 is in excess of HUF 67 billion.
market leading position and direct investment unit sales
Our aim is to become the largest independent fund manager in Hungary measured by assets under management, a completely realistic target considering the fact that, with our current performance, we already rank second among independent fund managers. Currently, our key sales channel is the life insurance sector as our insurance partners develop new products for which QUANTIS Zrt. provides the investment funds. We blend and optimize these funds with the assistance of the Q-Select fund selection model. However, for us insurance is only one of the potential sales channels. Parallel to the insurance channel, we have recently introduced the direct sale of investment funds through the BROKERNET Group network. Furthermore, our long-term plans include the provision of asset management services to pension funds.
Ákos Sárándi CEO
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Ákos Sárándi QUANTIS Investment
Management Zrt. CEO
„First be best and then be first.”
Grant Tinker
”The establishment of our fund management company has been vindicated by its unmatched and profound success.” Péter Kostevc, BROKERNET Group, President
”We have taken another major step towards broadening the product range of our independent financial services activities.” Erika Kósa, BROKERNET Group, Vice-President
”Facts are stubborn things. This has been proven by yet another member firm of our group.” Pál Kutvölgyi, BROKERNET Group, Vice-President
”I take pride in the fact that we have once again proven in a highly competitive market that our legendary innovative approach is capable of working miracles time and time again.” Zoltán Körtvélyesi, BROKERNET Zrt., CEO
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Attila RebákCFA, PRM, CAIAQUANTIS Investment Management Zrt. Investment Director
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Investment • Insurance • Loans • reaL estateServices from the market leading financial services company group
BROKERNET Group is the dominant market leading financial services firm in both life insurance and loan brokerage and is also indirectly Eastern Europe’s major buyer of investment units (with sales through unit-linked schemes worth HUF 120 billion until the end of 2008). Its insurance brokerage firm is a multiple award winner in the personal insurance market segment.
The backbone of our Group is formed by a group of closely interconnected, but le-gally separate member companies including BROKERNET Zrt. engaged in the brokerage of security-based investment-insurance facilities, PaLLaDIum-Brókerház Kft. functioning as an insurance brokerage firm, BANKBROKER Zrt., our loan brokerage firm, PLatea Kft. engaged in real estate brokering, and QUANTIS Investment Management Zrt., our Group’s investment fund management company.
100 billion
80 billion
60 billion
40 billion
20 billion
Amount of premiums paid by clients in the current year (HUF bil.)
200820072006200520042003200220012000
71.2
84.7
57.6
17.28.26.34.52.20.3
BROKERNET Zrt.
10 billion
8 billion
6 billion
4 billion
2 billion
PALLADIUM-Brókerház Kft.Amount of active insurance portfolio (HUF bil.)
200820072006200520042003200220012000
60 billion
50 billion
40 billion
30 billion
20 billion
BANKBROKER Kft.Annual new loan revenue (HUF bil.)
2.11.21.90.14.4
11.8
23.3
40.6
57.3
200820072006200520042003200220012000
100 billion
80 billion
60 billion
40 billion
20 billion
A tárgyévben az ügyfelek által be�zetett díjak összege (Mrd Ft)
200820072006200520042003200220012000
71.2
84.7
57.6
17.28.26.34.52.20.3
BANKBROKER, PALLADIUM, PLATEA ÉS QUANTIS nélkül
0.760.380.170.07
1.121 1.426
2.597
4.625
7.517
60 billion
70 billion
50 billion
40 billion
30 billion
20 billion
QUANTIS Zrt. Assets under management January-December 2009 (HUF bil.)
May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.Apr.Mar.Feb.Jan.
49,23 50,51 53,6556,45
61,01
67,05
36,59
21,63
30,91
2,1110,60
17,96
syne
rgy
FOUR-IN-ONE™
5 billion
4 billion
3 billion
2 billion
1 billion
PALLADIUM-Brókerház Kft.Amount of active insurance portfolio (HUF bil.)
0.760.380.170.07
1.121
1.426
2.597
3.90
4.72
200820072006200520042003200220012000
60 milliárd
50 milliárd
40 milliárd
30 milliárd
20 milliárd
BANKBROKER Kft.Éves új hitelforgalom (Mrd Ft)
2,11,21,90,14,4
11,8
23,3
40,6
57,3
200820072006200520042003200220012000
100 milliárd
80 milliárd
60 milliárd
40 milliárd
20 milliárd
A tárgyévben az ügyfelek által be�zetett díjak összege (Mrd Ft)
200820072006200520042003200220012000
71,2
84,7
57,6
17,28,26,34,52,20,3
BANKBROKER, PALLADIUM, PLATEA ÉS QUANTIS nélkül
50 milliárd
40 milliárd
30 milliárd
20 milliárd
10 milliárd
QUANTIS Zrt. Kezelt vagyon 2009. január – július (Mrd Ft)
10,602,11
17,9621,63
49,23
30,91
36,59
máj. jún. júl.ápr.márc.febr.jan.
100 milliárd
80 milliárd
60 milliárd
40 milliárd
20 milliárd
A tárgyévben az ügyfelek által befizetett díjak összege (Mrd Ft)
200820072006200520042003200220012000
71,2
84,7
57,6
17,28,26,34,52,20,3
BROKERNET Zrt.
„The BROKERNET Group is Hungary’s dominant market leading independent financial advisory group.” Deloitte Hungary
10 billion
8 billion
6 billion
4 billion
2 billion
PALLADIUM-Brókerház Kft.Amount of active insurance portfolio (HUF bil.)
200820072006200520042003200220012000
60 billion
50 billion
40 billion
30 billion
20 billion
BANKBROKER Kft.Annual new loan revenue (HUF bil.)
2.11.21.90.14.4
11.8
23.3
40.6
57.3
200820072006200520042003200220012000
100 billion
80 billion
60 billion
40 billion
20 billion
A tárgyévben az ügyfelek által be�zetett díjak összege (Mrd Ft)
200820072006200520042003200220012000
71.2
84.7
57.6
17.28.26.34.52.20.3
BANKBROKER, PALLADIUM, PLATEA ÉS QUANTIS nélkül
0.760.380.170.07
1.121 1.426
2.597
4.625
7.517
60 billion
70 billion
50 billion
40 billion
30 billion
20 billion
QUANTIS Zrt. Assets under management January-December 2009 (HUF bil.)
May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.Apr.Mar.Feb.Jan.
49,23 50,51 53,6556,45
61,01
67,05
36,59
21,63
30,91
2,1110,60
17,96
Our group’s member firms work with more than 6,000 consultants every day of the year according to the highest quality standards so that our clients can fulfil their real estate, investment, loan and insurance related goals. Over the past decade, we have seen the emergence among our consultants of experts and leading figures in all of these areas and product groups.
The BROKERNET Group is an independent multi-brand financial services provider. Our carefully selected group of partners include the largest and strongest banks, investment fund managers, pension funds, insurance companies and healthcare funds in the financial sector. Thanks to the quality and size of our 6,000 strong sales network and our customer base, we have up-to-date market information and knowledge of real customer needs that is unrivalled in the industry.
Should you require assistance in any of the following 4 areas, the advice necessary for your decision will be provided by the member firm of our independent group of companies specializing in the given field:
Investment – BROKERNET Zrt. and/orQUANTIS Investment Management Zrt. Insurance – PALLADIUM-Brókerház Kft. and/or BROKERNET Zrt. Loans – BANKBROKER Kft.Real Estate – PLATEA Kft.
Naturally, in case of complex needs, the comprehensive financial advisory activities are carried out through the synergetic, concerted work of several member firms of the Group.
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Mem
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ork
BROKERNET Zrt.BANKBRO
KER Kft.PALLADIUMPLATEA Kft.
QUA
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BROKERNET Investment Holding Zrt.
Brókerház Kft.
Man
agem
ent Z
rt.
In late April 2009, we were delighted to learn that, thanks to our efforts over the last decade and our focussed brand building strategy, the BROKERNET Group had earned its first international award. This recognition will certainly improve our company’s reputation, contribute to creating a positive perception of our future activities outside of Hungary, and increase the company’s goodwill. We take special pride in the fact that we won this special award in a situation in which many financial services companies have been struggling with "reputation problems". Insurance companies in Hungary have earned this award in the past, but we are the first independent financial services brokerage company to do so.
Superbrands is the world’s leading brand building system, recognizing leading brands in more than 82 countries based on the same criteria.
Founded in the United Kingdom in 1995, the Brand Council is an independent organization that operates in 82 countries worldwide. It recognizes brands that have attained outstanding success and ensure the perpetuation of such outstanding achievements. The Brand Council also examines the characteristics that enabled the success of each brand.sy
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Selectedinvestment funds
Once all information has been processed and quantified, the ranking prepared with the Q-Select scoring system will show which funds should be added to our portfolio. Naturally, a fund of funds contains several funds, which means that subject to finalization of the given investment strategy, in the end investment takes place in - funds.
QUANTIS Zrt.'s experts compare, among other things, the performance of each fund to relevant reference indices, and the balance between over and under performance. This is followed by an analysis of the fund’s perfor-mance in both “bear” and “bull” markets, as well as of the fund-manager's track record for the given strategy. This special quantitative screen-ing process required substantial investments in special software and subscriptions to various information services.
However, the most difficult and time-consum-ing part of the process is the qualitative analysis. First, QUANTIS Zrt.'s consultants contact the given fund management company directly and send them a -page questionnaire about their investment processes, key employees involved in investment related decision making, their capacity to analyze various issues, and their risk management practices. This questionnaire also addresses questions about the company in general and several operational areas (such as accounting). Upon receipt, the completed questionnaires are processed, and the results are used to further narrow the number of funds which have passed the quantitative test. Next, QUANTIS Zrt.'s experts select the ten best funds, and meet the managers in person, whether in London, new York, Hong Kong or any other global capital market centres, to conduct in-depth interviews.
Unique Q-Select model
The Q-Select fund selection model is based % on quantitative factors and 7% on qualitative factors. This means that, within any given invest-ment strategy, all funds are subject to quantita-tive screening before even reaching the stage at which qualitative factors are examined.
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Multi-distribution channels
QUANTIS Zrt. provides the infrastructure for selling investment fund units to ensure that the selected funds are available through the group's handpicked and certified advisors.In addition to functioning as an important and efficient sales channel, partner life insurance companies are supported by the funds man-aged by QUANTIS Zrt. as a valuable part of the investment offer, parallel to existing paths of distribution. Pension funds are also key strategic players of Hungarian capital markets, therefore - as a third distribution channel - one of the major developments of the near future will be the inclusion of the professional asset management of pension fund portfolios into QUANTIS Invest-ment Management Zrt.'s scope of dynamic and successful activity.
Modern distribution model
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Optimizedinvestment philosophy
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Highly qualified investment advisors
and analysts
Multi-manager solution
QUANTIS Zrt. introduced a solution to the Hungarian market that is unique not just in Hungary, but in all of Eastern Europe. Our new fund management company primarily focuses on investment fund selection, not on the selection of individual stocks. In Anglo-Saxon countries, this concept is known as the multi manager solution. These schemes are available in the form of a fund of funds which is not a novelty in Hungary; however, the underlying investment philosophy showcases several in-novations.
Highest level international investment analyst exams
Before joining the BROKERNET Group, econo-mist Ákos Sárándi worked for the Budapest office of Credit Suisse Asset Management for more than five years in the company’s European sales team as sales and marketing Director in charge of Hungary and as a member of the board.
Economist Attila Rebák spent more than three years as Chief Investment Officer of the Budapest office of Credit Suisse Asset Man-agement. In addition to his EFFAS (European Federation of Financial Analysts Societies) quali-fication, Mr. Rebák also holds the distinctive CFA ("Chartered Financial Analyst") rating. He was the first in Hungary to earn the PRM (Pro-fessional Risk Manager) degree, and one of the first experts to be awarded the CAIA (Chartered Alternative Investment Analyst) qualification, the only professional qualification focussing exclusively on alternative investments.be
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QuanTis invesTmenT managemenT ZrT.tHe comPetent funD manager
Over the last few years, the BROKERNET Group’s sales network has sold unit-linked life insur-ance products worth more than 120 billion HUF, the underlying products of which were vari-ous investment fund units. With this volume, the BROKERNET Group has indirectly become Eastern Europe’s major buyer of investment units.
Quality control and competence centre
An accomplishment of this magnitude is a huge success and at the same time, an enormous responsibility. This is why the BROKERNET Group decided to establish a fund management company unique to the region, in order to provide quality control of unit-linked investment type insurance products, help the group enter the market of non-insurance related direct investment fund units, and serve as a competence centre to support the training of our advisor network.
The unmatched success of an innovative business model
Our company was registered on 7 July 2008 by the Municipal Court of Budapest acting as court of registration. the company’s licence was approved on 5 December 2008 by the Hungarian Financial Supervisory Authority in Resolution No. E-III/1095/2008.
QUANTIS Zrt. currently manages ten investment funds. The value of assets under manage-ment since inception in January 2009 is in excess of HUF 67 billion.
Objectives and risk management
There are times in our lives when more money is needed for a particular purpose (wedding, buying a new car or home, travel, setting up a business) or to overcome a difficulty (dam-ages, problems in the family, unforeseen business expenses, or health problems) than our monthly budget allows. Although we can always use our savings, the other two solutions (credit or insurance) are not always an option.
Consistent investment planning
The only way to accommodate fluctuations in one’s income (due to unemployment, health problems, disability or retirement) is to accumulate sufficient reserves. Neither the state healthcare and pension system, nor insurance constitutes a satisfactory solution to this problem. According to international professional literature on the subject, only a separate, long-term, consistently executed investment plan or highly valuable piece of real estate set aside specifically for this purpose can meet this goal. This means that it is advisable for the majority of people to allocate a certain portion of their income for long-term investment.
invesTmenT funds are one of toDaY’s most PoPuLar Investment oPtIons
Everyone has heard of investment funds, but the majority of people have not yet taken advantage of this modern investment vehicle. What should you know about investment funds? Simply and figuratively speaking, an investment fund is a basket into which numerous investors put their money. The investment fund manager uses this money to buy international and domestic securities and/or the investment units of other investment funds in accordance with the investment policy of the given fund with a view to achieving capital gain. In this way, the value of the fund itself increases along with the investors’ capital. The total value of the fund is determined in investment units. Investors can increase their capital through accumulation of these units and through the increase in their value.
The uniQue benefiTs of invesTmenT funds
The relationship between risk and return
History teaches us that, in the long-run, riskier investments (such as securities and real estate) produce the highest returns. These investments, however, require expertise and constant attention. Individual investors usually lack not only the necessary expertise, but also funds sufficient to allocate efficiently and securely among the various investment options.
Capital strength + diversification = better conditions
Investment funds, on the other hand, accumulate sufficient funds, through pooling individual savings, to minimize risk through diversification and get more favourable conditions. In other words, investment funds are distributed among a number of financial instruments; therefore, their yields are less exposed to volatile changes in individual security prices.
Matching interests
It is also important to point out that the fund manager has a strong motivation to increase the value of the fund, because this ensures a higher income for the fund management company. This matching of interests, by no means an automatic feature of other forms of investments, is one of the major advantages of investment funds.
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Portfolio.hu is one of Hungary's most influential independent financial advisory websites. We asked Zoltán Bán, Senior Analyst, about recent events and foreseeable changes.
What is your opinion of the robust increase in the world's stock exchanges over the last six months?
After a year and a half of sharp plummeting, the world's equity markets have shown significant growth. There were hardly any indices that did not increase by at least 60% between March and September 2009. The reason for the increase is simple; while in February the market was preparing for and pricing the worst, i.e., total financial and economic collapse, come spring, it became obvious that the world will survive the greatest crisis of the last 75 years. After a quick correction, the market did not attain equilib-rium by the autumn of 2009; rather it is still looking for the point which in the new fundamental environment contains reasonable price levels. This point, however, is extremely difficult to find as nobody knows precisely how long the world economy will continue to flag, what effects will this have on corporate profits, or which companies will be the winners and losers of the crisis.
What do you think of the next two years?
Although we expect a correction in the short term, we hope no sharp de-cline will occur again. At the same time, the next year could be remarkably interesting as it will then become apparent which sectors, companies, and countries can be successful in the changed financial and business environ-ment. The next two years will be important not only in terms of willing-ness to take risk, but also in terms of fundamentals. In our opinion, it may already be worth investing if one follows a smart investment strategy that can quickly adapt to market changes and manage risk well. In the short term, however, we are still expecting a downturn, and stock exchanges will embark on a stable growth path from price levels more moderate than what we see today parallel to the resurrection of the global economy.16
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Zoltán Bán Portfolio.huSenior Analyst
The future is mankind’s oldest invention. © 2009 QUANTIS Investment Management Zrt.
QUANTIS Investment Management Zrt.H-1051 Budapest, József nádor tér 5.BROKERNET blue number (local rates apply for calls made within Hungary): + 6 4 2 9www.brokernet-group.comwww.quantis.huOperation permit number: E-III/95/2.
Imprint:
Design and concept:
Broker Network International Corporation
Republic Group
Pál Kutvölgyi
Typography:
Keskeny Nyomda
Photo agency pictures:
Shutterstock
The information contained herein is the intellectual property of QUANTIS Investment Management Zrt. and the BROKERNET Group. Any copying, duplication or
reproduction in print or electronic media of this information or any part thereof is subject to the owner's approval.
The past performance of investment funds does not necessarily predict their future performance. The price and return on investment units may move up or
down, and accordingly, the amount paid upon redemption of the same may be higher or lower than the original investment. All information in this document is
for information purposes only and does not constitute an investment recommendation, invitation to bid or investment advice; furthermore, this document is not
intended to substitute a thorough understanding of the combined Prospectus and management policy of the funds managed by the fund manager.
The fund manager accepts no responsibility for investment decisions made on the basis of the announcement and the consequences thereof. Prior to making any
investment decision, we suggest that the investor read the combined Prospectus and management policy available at the fund manager's headquarters and at
the www.quantis.hu website. The return realised on the purchase and redemption of investment units is subject to taxation. We suggest that the investor study the
applicable tax laws prior to making any investment decision.