At CEP, transparency and accountability are at the heart of portfolio management. In a recent conversation with David von Ballmoos, Partner at CEP, he explained how the firm uses Performance Watcher to compare real, net-of-fees portfolio results with those of competitors, giving clients a clear and objective view of their investments.
Can you tell me a bit about your company and your role?
CEP SA is an independent asset management company, founded more than 25 years ago on the core values of trust, independence and responsibility. We support a predominantly private clientele over the long term, with a strong focus on personalised advice and professionalism. I am a Partner at CEP and responsible for managing my clients’ portfolios. I also serve as co-head of the investment committee, where we make decisions together on both asset allocation and the selection of financial products. Along with my partners, I am involved in steering and developing CEP at both organisational and strategic levels.
What influenced your decision to partner with Performance Watcher?
At CEP, we were looking for an independent, credible tool that would let us compare our portfolios not just against a sometimes biased index, but directly with the portfolios of our competitors. Performance Watcher convinced us because it uses the performance of real portfolios, net of fees, and that is what ultimately led us to form a partnership with them so we could offer our clients a fair comparison. It is also a solution that fully aligns with our drive for transparency. It allows us to compare ourselves with our peers in both good and bad times, and to assess how our portfolios are managed.
How would you describe Performance Watcher? Which terms or images come to mind when you think of the platform?
I would sum it up in three words: transparency, independence and credibility. At CEP, we are committed to using this tool because it gives us a truly robust way to measure and compare different portfolios and their performance with one another.
How do your clients react when you show them the Performer or the entire platform?
Clients’ reactions are generally very positive. At a glance, they can see whether their portfolio, and its performance, are good or not. Because the results are presented using a weather-style visual, everyone immediately understands it. Clients especially value this clarity, the independence of the comparison, and the fact that performance is shown net of fees. At CEP, we also use this tool internally for portfolio management and management control. It lets us compare portfolio managers with one another and see whether there are differences in performance and in how portfolios are run. More broadly, if we see that the “weather” across our portfolios is looking rather gloomy, it pushes us to adjust our management and to challenge ourselves.
Have you noticed any changes in client acquisition or retention since introducing Performance Watcher?
We have seen a positive impact both on retaining existing clients and on prospecting for new ones. For current clients, it allows us to show them their portfolio and compare it with other portfolios in the market. It demonstrates, in an independent way, that we are willing to measure ourselves against the competition and to question our own approach. And when we meet prospective clients, from the very first meeting we can show CEP’s historical performance for the agreed strategy and compare it directly with the performance delivered by other players in the market.
Would you recommend Performance Watcher to colleagues in your field? Why or why not?
Of course, I would recommend Performance Watcher. First and foremost to managers who are confident in their investment process and comfortable being compared with other portfolios. You have to be willing to challenge yourself and accept being challenged. In return, it helps you build credibility with clients. And in an industry where transparency has become absolutely crucial, this is a real step in the right direction.
