Stefan M. Kremeth is the CEO and Partner of Incrementum and holds an EMBA in Intl. Asset Mgmt from the University of Liechtenstein. He worked for UBS Zurich, Toronto, Madrid, Sal. Oppenheim and Lombard Odier, where he became EVP in 2006. Stefan returned to Sal. Oppenheim as MD to build up and manage the Sales- & Execution Trading Desk. In 2009 he became co-owner of Incrementum.
UCITSindex.com: New UCITS fund managers have to decide at first whether they setup their own fund structure or use a UCITS fund platform. You decided to setup your own fund umbrella for seven independent fund managers. How did you find your partners?
Stefan M. Kremeth: During my career I had the chance to meet a great many and interesting people, six of whom became partners of mine at Incrementum AG. Three of them I have known for more than 20 years and I have worked with in the past. Even non-partners, like our risk manager who used to be my deputy years back and our compliance officer with whom I sat in the Lombard Odier Zürich management board, are people I have known for a long time and I can trust. I think it is important to know the people you team up with for as long as possible and even than the unexpected may happen. Never forget, you get to know the true character of your partners during difficult and more stressful times.
UCITSindex.com: What are the main benefits of your “partner” solution?
Kremeth: As a fund manager you want to be as independent as possible. Incrementum AG is a truly independent asset manager as we do not accept any kind of financial or other incentives by banks, brokers, administrators, other fund managers or other third party providers. On this independent platform our partners are free to take their independent investment decisions within the regulatory and legal framework and as outlined in the fund’s prospectus. Investment processes are transparent, easy to understand and easy to implement.
UCITSindex.com: Which sub-funds do you manage yourself and what is their focus?
Kremeth: I am a co-manager of the Incrementum Strategy+ and the Incrementum Fund uno. The Incrementum Strategy+ is a UCITS fund denominated in Swiss Francs and mainly investing in European dividend stocks. The portfolio is diversified in five sectors and uses a strategy of covered calls and short puts in order to achieve additional cash returns. The incrementum Fund uno is a commodity fund investing primarily in physical precious metals and therefore not UCITS compliant.
Furthermore we are the managers of the UCITS compliant (real inflation adjusted) absolute return fund Incrementum AEGO which is based on the principles of the Austrian School of Economics and where investments are pertaining to the proprietary Incrementum macro economic inflation/deflation signal. By means of a flexible allocation in inflation/deflation-sensitive investment categories this fund can generate positive returns in both inflationary and deflationary environments.
We are also managers of the SMP Uranium fund. The only UCITS compliant infvestment fund taking on the investment topic of unranium as a source of energy and last but not least we are managers of the Tuma commodity fund, a non-UCITS compliant investment fund offering participation in a widely divesified portfolio of mainly commodity- and natural resources equity holdings.
UCITSindex.com: Why did you choose Lichtenstein over more established fund hubs like Ireland or Luxembourg?
Kremeth: We were very well received in Liechtenstein. Although authorities were very strict, they were also very helpful at the same time. The people from Liechtenstein speak the same language than we Swiss do and Liechtenstein is only roughly one hour an 15 minutes away from Zürich. We evaluated Luxembourg and Ireland and many other financial centers, however, total cost for office space, compliance, risk management, internal and external auditing, etc. seemed lower in Liechtenstein than in other places. In addition to this we really wanted to apply for a full license, have an office and work from that very office. Luxembourg and Ireland would have meant to move our families which at least for some of my partners would not have been an option.
UCITSindex.com: Thank you for the interview
About Incrementum AG
Incrementum AG is a fully licensed asset manager that evaluates investments from a global economy perspective, taking the current state of the global monetary regime into account. This analysis produces a truly holistic view of the state of financial markets. Their profound understanding of monetary history allows clients to prosper in any market environment.