麻豆传媒在线

"The basics of investing should be taught at a young age"

Jonathan Decurtins
Managing Officer and Head of Wholesale Switzerland and Liechtenstein, Vanguard

 

Mr Decurtins, ETFs seem to be a recurring theme in your career. Did you foresee the triumph of ETFs fifteen years ago?

Fifteen years ago, the ETF market was still a niche market and many market participants underestimated its potential. At the beginning of my career, I felt that the transparency, efficiency and low costs of these products could offer many advantages for investors. But very few people foresaw the enormous growth and market penetration we see today. The decisive factor was the steadily increasing demand for simple, broadly diversified and cost-effective investment solutions, which we can meet with ETFs. Today, ETFs have become an integral part of modern asset management.

What is your view on the ongoing debate about active vs. passive investing?

In my view, the debate is less about either/or and more about finding the right strategy for individual goals. Passive ETFs offer the advantage of being cost-effective and transparent and reflecting broad market developments, which is an attractive solution for many investors in the long term. Active approaches can offer added value in certain segments, especially when specialised expertise or targeted selection is required. Ultimately, it is important for investors to be aware of their risk appetite and investment goals and to choose a balanced strategy. For us, the priority is that investment products are understandable, accessible and efficient, so that investors can benefit as much as possible from the opportunities offered by the capital market.

The price war among ETF providers is fierce. Is price the only decisive selection criterion for investors?

Price is undoubtedly an important criterion when it comes to selecting ETFs 鈥� after all, low costs can have a significant impact on returns in the long term. Our company is organised as a cooperative, which means that we effectively belong to our US fund investors. This unique structure allows us to focus on the interests of investors and pass on price advantages, for example through fee reductions. We are committed to the long-term investment success of our clients, transparency and continuous improvement in product quality. The selection of an ETF should not be based solely on price, but should always include aspects such as structure, liquidity and service.

At Vanguard, you focus on private and retail customers, which means you have to go through banks, insurers and asset managers. How well does this model work?

Our model of providing access to our products through banks, insurance companies and asset managers works very well. These partners know the needs of their customers and can offer tailored solutions. We also place a strong emphasis on training and knowledge sharing to ensure that the advantages of ETFs and index-based strategies are communicated. Cooperation with banks and independent asset managers, for example, ensures that our products are also widely available to private investors. Of course, this model requires close coordination and continuous dialogue in order to protect the interests of all parties involved and to make access to the capital market as easy and understandable as possible.

How do you communicate the investment principles and advantages of ETF savings?

Vanguard has defined four investment principles for successful investing: set clear goals, build a balanced portfolio, keep costs low, and maintain discipline. Investors should first clearly define their personal goals and investment horizon 鈥� because without clear guidance, there is a risk of false expectations. In a second step, we show how important broad diversification in the portfolio is in order to minimize risk and enable stable returns. We always emphasize that low costs 鈥� as the third principle 鈥� make a decisive contribution to long-term returns. Finally, we promote the fourth basic rule: discipline. Especially in volatile phases, it is important to stick to the chosen strategy and avoid emotional knee-jerk reactions.

ETFs and corresponding savings plans are the perfect model for giving savers access to the capital market. However, a recent Vanguard study has shown that there is still a great deal of reluctance. Why is this?

In fact, we are currently seeing growing inflows into ETF savings plans, particularly among independent investors 鈥� which shows that access to the capital market has long since become a reality for many savers. Nevertheless, our study shows that a large part of the population remains cautious when it comes to saving in securities. There are many reasons for this: often, people lack the necessary knowledge about the opportunities and functioning of ETFs and savings plans, and there is still uncertainty about how to deal with financial markets. This is precisely where we see a key task: we want to strengthen financial education in the long term and encourage savers to take on the role of investors. Our goal is to break down barriers, impart knowledge, and facilitate the transition from traditional saving to targeted investing.

Do you see regional differences in the investment behavior of Swiss customers?

Yes, there are definitely differences in the investment behavior of Swiss investors. The different language regions reflect cultural influences, different traditions of saving and investing, and, in some cases, diverging risk appetites. However, the basic rule is that interest in the capital market is growing across all regions, but individual approaches, information needs, and confidence in new investment concepts can vary significantly depending on the region.

What approaches should be pursued to make the credo 鈥渋nvesting is the new saving鈥� more appealing to potential customers?

In order to anchor the credo 鈥渋nvesting is the new saving鈥� more firmly in the population, it is crucial to focus on financial education 鈥� and to do so as early as possible. The basics of investing, opportunities and risks, and how securities work should be taught as early as adolescence in order to reduce inhibitions and spark interest in the capital markets. Securities savings offer clear advantages over traditional savings: the compound interest effect has an enormous impact over long periods of time, resulting from both price gains and dividend income on stocks and price increases and coupons on bonds. Many people underestimate this effect, which can contribute significantly to wealth accumulation, especially in the long term.