Increasing Portfolio Profitability by 4.3% Annually
We conducted a portfolio audit for a client from Gdańsk who had funds in 3 different banks. We eliminated duplicating funds and negotiated lower management rates. The result improved without increasing risk.
Managing large wealth spread across several banks is often chaos and hidden costs. Nordic Solutions Group from Gdańsk was losing money on commissions that no one had told them about before. We organized their financial structure in 102 days.
The challenge
The board of a company from Gdańsk kept free funds on 7 different accounts in 3 banks. Each bank charged fees for account maintenance, but the biggest problem was investment funds. In the portfolio, we found 14 products that almost entirely overlapped. In practice, the client was paying twice for the same risk. Annual maintenance costs were 1.84% of the total capital, which at their scale meant hundreds of thousands of zlotys lost every year. Additionally, no one controlled whether the results of these funds even covered inflation. Over the last 2 years, the real value of their savings fell by 6.2%.
Our approach
We started with a full audit of statements from the last 24 months. Our team analyzed 118 bank documents. We checked every transaction fee and management commission. Then we sat down for talks with the advisors at the client's banks. We knew what rates other entrepreneurs get with such capital, so we had strong arguments. We did not look for new, risky investments. We focused on cutting unnecessary costs and simplifying the structure so the owner could check the wealth status in 5 minutes.
The solution
We reduced the number of funds from 14 to 6 specific instruments. We negotiated a management fee reduction of 0.75 percentage points in the two main banks. We closed 4 unnecessary auxiliary accounts that generated only administrative costs. Vistula Wealth Advisors also implemented a reporting system that sends a simple summary of profits and losses every month directly to the client's phone. The entire process took us exactly 14 weeks. Now the portfolio is transparent, and the banks know that every zloty is under control.
Results
Nordic Solutions Group regained control over liquidity and stopped overpaying for account maintenance. We protect what they built in the maritime sector, caring for their capital without fluff about the stock market. Net profit increased without taking additional investment risk.
Timeline
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January 2024Analysis of 118 statements and identification of hidden bank fees.
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February 2024Negotiations of terms with advisors in 3 bank branches.
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March 2024Construction of a new portfolio structure and implementation of automatic reports.
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April 2024Finalization of contracts and first quarterly performance review.
"I thought the banks were looking out for my interests until I saw the statement from Vistula Wealth Advisors. It turned out that annually I lose the equivalent of a new car on stupid commissions."