Binckbank has expanded its execution-only 'Do it for me investing' range in the Netherlands with the introduction of Binck Comfort, a personalised discretionary asset management service which is based on a combination of risk protection and return on investments.

Binck Comfort has a personal investment plan, with which investors determine a buffer and reserve, and an entry threshold of €10,000. To invest in a cost efficient manner, the online broker has set up two mutual funds: Binck Global Developed Markets Equity Fund and Binck Euro Bond Fund. Binck Comfort uses an algorithmic risk model to determine which part of the assets are invested in the two funds and by responding to rising and falling stock markets, the online broker said it will try to reduce losses but, at the same time, will try and benefit from positive trends in the stock market.

Binck has opted for exchange-traded funds (ETFs) and funds to invest in equities and bonds with a wide spread and low management fees, and which are easily tradeable. The daily management of the bond and equity fund is carried out by one of the bank's fund manager, who is also responsible for the screening and selection of ETFs and monitoring the performance of the funds. The funds are selected based on criteria such as liquidity and running costs and need to fit in the investment policy, which means that ETFs with synthetic replication are excluded, according to Binckbank.

Both the equity and bond fund invest in funds and ETFs of third parties, including Blackrock, Robeco, State Street Global Advisors, Thinkcapital and Vanguard, however, to limit counterparty risk, the bank has chosen funds and ETFs which only lend shares to a limited extent. If the underlying ETFs pay dividends, they will be automatically reinvested in the mutual funds.

The funds are set up through BIL Manage Invest, which is regulated by the Luxembourg regulator Commission de Surveilance du Secteur Financier and acts as the management company for the funds. In turn, BMI has delegated the portfolio manager function to Binckbank.

The Binck 'Do it for me investing' formula serves as an umbrella for Binck Comfort, Binck Forward and Binck Pension, three discretionary asset management companies which aim to help individuals achieve their personal long-term wealth objectives.

'Following the trend in which clients are increasingly directing their own independent financial future, we see an increasing need to outsource their investments to an online asset management expert,' said Jeroen Sonsma, director of Binck Netherlands, in a statement. 'Besides convenience, good stewardship is of great importance. For customers in this target group who entrust their money to Binckbank, it is important that they can fall back on a predetermined level of their accumulated assets.'

Click the link to view the Binck Comfort user's guide (Dutch).

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