Expat Wealth Management Strategies in an Uncertain Global Economy

Aisa International is an EU-based company in the Czech Republic that is relatively unique in the expatriate advice market.

Aisa International provides investment advice through its discretionary management licenses and can act as a Securities Trader throughout the EU via passporting. All directors and owners of Aisa International have passed EU Security Traders exams, required for those that provide direct European investment advice.

“We realised that psychology played a huge part in affecting outcomes, and bias was unavoidable within one group working to a common goal,” said Chris Lean, Investment Director, Aisa International. “Client psychology was entirely risk averse, feeling greater pain even where gains had previously outweighed losses.”

Based on this philosophy, Aisa International built its plan using five key principles:

• Attitude to risk could not be a number in a chart, but a definition that a client could buy into.
• The key measurement was capacity for loss and risk aversion rather than gains.
• Portfolios had to be linked to measurements of risk and volatility, rather than targeting returns in short time periods.
• Portfolios have to be biased in content toward the geographic location of the client.
• Due diligence meant that active managers it utilised had to meet certain criteria.

Governance and risk management is key

From the beginning, Aisa International has been a transparent, fee-based, advice firm. All advisers are expected to be qualified to at least the UK minimum diploma level, with many achieving chartered status. Direct investment advice is given only by holders of the relevant EU investment exams. Aisa International’s investment process, built over 13 years, provides consistent results, even in this year’s unstable economy, and its Securities Trader license provides class-leading investment outcomes for its diverse clients.

A proven track record is integral to its long-term success

To further ensure client satisfaction—less than 1% of clients have terminated its services over the last 8 years—Aisa International publishes discrete and rolling 12-month performance for all portfolios on a quarterly basis.

“This enables us to communicate to our clients our thoughts leading to feedback and client satisfaction ratings; measured by a lack of complaints and increased client loyalty,” Lean added.

In 2021, Aisa International was issued a Securities Traders license which, along with its other existing licenses, enabled full coverage and flexibility beyond its competition—including not only investment advice, but discretionary fund management. To achieve this, Aisa International used an internationally recognised accounting firm to meet strict requirements set forth by Czech National Bank.

“Aisa International had to undergo a full and transparent investigation of all accounts from the previous three years,” Lean said. “After the completion of that lengthy process, we were given a clean bill of health—no mean feat in a country with a different language and unique accounting requirements.”

Comprehensive compliance with stricter financial standards

Aisa maintains a 100-page governance and risk management document setting parameters for fund selection, risk targeting, asset allocation, investment and advice process, and due diligence on whole-of-market principles.

Aisa International’s investment team is limited in numbers, as they believe more specialists lead to “groupthink” and a reduction in innovation. The investment team sets the agenda and ensures governance is followed.

Aisa International separates the investment team from the people who select the funds who have no input on the thematic asset allocation pursued. Each client portfolio is linked to risk volatility and measured against governed principles. The funds and markets are monitored daily, whilst the thematic strategy is assessed quarterly.

Aisa International offers an award-winning unique insight into investment management that is powered through communication technology, RegTech. Additionally, the company holds Insurance Distribution Directive, supplementary pension, and credit licenses. Aisa Group also holds a US Securities and Exchange (SEC) licence that allows it to work with American expats who have financial interests in the US stock market.