Understanding Ginmon

What does Ginmon offer me?

Ginmon offers you a transparent and fully automated portfolio management with a clear strategy. This allows you to invest easily and cost-efficiently in proven investment formats.

Ginmon’s user-friendly technology combined with its comprehensible investment products offer a completely new way to invest. Ginmon is an honest and fair alternative to traditional bank products and investment advisors.

How does intelligent investment work at Ginmon?

The investment process of Ginmon has three steps:

1. Initially you determine your investor profile by answering seven multiple choice questions. This will take less than two minutes.

2. In the next step, you can easily adjust your preferred investment using a slider. Now you also enter your one-time investment and your desired monthly savings rate. Our platform will automatically calculate the optimum capital allocation for your investment and will show you the expected annual rate of return.

3. Once you have set up your deposit account at our partner bank, Ginmon automatically implements your investment strategy and optimises your portfolio on a continuous basis. It is easy and convenient to manage your portfolio with only a few clicks in your Ginmon login. There, you can make deposits and withdrawals or change your savings rate. Using your desktop computer, tablet or smartphone, you can always monitor how the value and composition of your investment develops at a glance.

Which depository bank does Ginmon use?

As a corporate client, Ginmon uses DAB Bank as the custodian bank for its customers.

DAB Bank AG has been 100 percent part of BNP Paribas Group since 2016. Nowadays, its sister institute Consorsbank, which is also part of BNP Paribas, caters for private customers.

Why does Ginmon generate such high returns?

Ginmon combines high returns with low costs. How exactly does this work?

We rely on two factors to yield high returns at low administration costs: A scientific countercyclical investment strategy and high automation; no fund managers or manual processes are needed.

The Ginmon investment strategy is based on the Nobel Prize-winning research of Professor Eugene Fama. His core finding is that the development of stock markets cannot be predicted. Thus it is pure gambling to try to outperform the market by selecting individual stocks. Instead of relying on a fund manager’s gut feelings, our algorithm invests counter-cyclically and across the market. Therefore, you profit from the high average returns of the global capital market by being invested in more than 10,000 companies from about 50 countries. In this way, you can secure high returns at low volatilities.

By not using fund managers, you also avoid expenses for analysts and unnecessary security transactions. Since processes are fully automated they are always as cost-efficient as possible. You fully benefit from these cost advantages and achieve the highest return on your investment.

How much do I have to pay for investing with Ginmon?

Ginmon offers you a cost-efficient and profitable investment. Our fees are as follows:

Basic fee: 0.39 % p.a. of the investment amount
Profit share: 1/10 of your profit at new heights

Basic service fee:  Our low all-inclusive basic fee already covers all services offered and there are no transaction commissions. The minimum monthly fee is €1.50.

Profit sharing:  Since we are convinced of the long-term profitability of our investment strategy, part of our service fee depends on your success. If and when your investment generates a profit, we receive a minor share thereof.

In which way do I receive information about my portfolio and how its value has developed?
In your login area (at https://my.ginmon.de) you can always look into your current investment strategy and how the value of your portfolio has developed. There, you can also always adjust your monthly savings rate and your investment strategy. Withdrawals are possible free of charge at any time.
Does Ginmon really not get any commissions or hidden fees (kick-backs)?
We operate in the best interest of our customers. Our goal is to be the most customer-friendly financial investment manager in Germany. Therefore, we operate without any commissions and hidden fees. Our pricing is always 100 percent transparent. This way you can rely on us as your neutral broker.
Is it possible to transfer existing securities from other depositories into my portfolio at Ginmon?

You are welcome to transfer your current security account or certain securities into your Ginmon account. By doing so, you can use old securities you do not longer want to hold as an additional deposit to your Ginmon account. We are happy to take over the complete transaction for you.

A transfer of securities is free of charge if the existing depository is held by owner of the Ginmon account. In many cases there are also no fees for a change of ownership.

As soon as the securities have been transferred, they will be sold by us. There is merely a final withholding tax or, in some cases, external stock exchange/brokerage fees.

Afterwards, we invest the proceeds into the securities you are holding in your Ginmon account.

Is it possible to cancel my portfolio at Ginmon at any time and do I get my money back immediately?
You can access the money invested at any time. In just a few steps you can cancel your portfolio at Ginmon. Once the termination is submitted, we liquidate your investment and transfer your money back into your reference account.
Where does Ginmon buy/sell the securities of my investment strategy?
Our partner bank DAB Bank processes any buy or sell orders of our customers. The annual service fee of Ginmon already covers these order costs. The DAB Bank is subject to the best execution principle regarding any security transactions.
Does Ginmon withhold capital gains tax on my profits?
Yes, taking into account the yearly saver’s allowance of up to €801 (if you have sent us your tax exemption instruction or “Freistellungsauftrag”) capital gains tax is directly withheld by our partner bank DAB Bank. Any capital losses are also set off against capital gains.
Why is Ginmon that much cheaper than classic investment funds and other banking products?

Combining modern technology with cost-efficient investment products, Ginmon offers you a significantly cheaper and more attractive alternative to classic investment funds and traditional banking products.

Ginmon’s high level of automation reduces your costs and eliminates errors caused by manual processes. Furthermore, our technology platform increases the processing speed and improves the customer experience. An attractive solution for efficient wealth creation results – and fees are up to 60 percent lower than for classic investment products.

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Security

Does Ginmon have access to my assets?
You have sole access to your assets as the holder of your own securities account. Ginmon never has any legal or technical access to your assets. Since the securities in your deposit are classified as segregated assets, they are also protected in the event of an insolvency of DAB Bank, our partner bank.
Where exactly is the money of my investment deposited?

The protection of your investment is a major concern to us. Your investment is safely deposited in your own securities deposit at DAB Bank, our partner bank. From a legal perspective, the assets of our customers are classified as segregated from our depository bank. In the unlikely event of an insolvency of our partner bank or of Ginmon your property rights remain unaffected.

In addition, Ginmon only uses fully replicating ETFs and index funds to avoid any counterparty risk. Using Ginmon you won’t take any unnecessary risks – certainly the first important step on your way to investment success.

Are my assets at Ginmon guaranteed by the European deposit protection?

The EU deposit protection guarantees repayment claims of customers against financial institutions. Assets held in a securities deposit are protected from third party access. In case of an insolvency of the partner bank, you are safe as a deposit holder.

Moreover, your credit on the settlement account is guaranteed by the EU deposit protection, as DAB Bank is a German financial institution. Thus, there is no need to worry about the safety of your investment.

How does Ginmon protect my data?

Protecting customer data is of the utmost importance for Ginmon. Besides the Federal Data Protection Act (Bundesdatenschutzgesetz), Ginmon also observes the Data Protection Directives of the European Union and other data protection rules and regulations.

Ginmon is strictly bound to the lawful and responsible handling of customer data.

Does Ginmon use a secure connection for the transmission of my data?
To ensure secure data transmission, up-to-date encryption methods apply when using our technology platform. Your data are transferred to our servers and vice versa via the internet with 256 bit SSL encryption (secure socket layer). This encryption meets the high standards customary for banks. Such a secure connection is indicated by the closed padlock symbol in the status bar of your web browser and by the URL in the address bar beginning with https://.
Does Ginmon send e-mails asking me to enter my login details and/or my password?
No, you will never be asked by us to enter your access data in an email. Such a query is most likely to be fraudulent. In such an event please notify our customer service immediately, e.g. by e-mail to service@ginmon.de.

Investment strategy

What is the minimum investment amount at Ginmon?

The minimum investment amounts to 1,000 € with a savings plan
(from € 50 per month).

The minimum investment without a savings plan amounts to € 5,000.

What is an ETF?
ETFs (Exchange-Traded Funds) are investment funds with low operational costs as they do not have an active fund manager. Compared to traditional investment funds with an active fund manager, ETFs and other index funds are more suitable for long-term wealth creation due to low costs and high return realised by more precisely replicating the market.
Which funds does Ginmon use?

The Ginmon portfolios contain only the following ETFs and index funds to replicate the worldwide stock and bond markets as precisely as possible.

Description Name of fund ISIN
Shares Developed Countries UBS-ETF SICAV MSCI World UCITS ETF LU0340285161
Shares Emerging Markets UBS-ETF SICAV Emerging Markets UCITS ETF LU0480132876
Shares Small Caps Worldwide Dimensional Global Small Companies Fund IE00B3XNN521
Bonds Governments and Companies Worldwide Dimensional Global Short Fixed Income Fund IE00B3QL0Y14
Bonds European Companies iShares Core Euro Corporate Bond UCITS ETF IE00B3F81R35

The share of each fund varies according to the risk category. Whereas generally the weight of shares increases with the risk category, the weight of bonds simultaneously decreases.

Why do I invest exclusively in index funds at Ginmon?

Many academic studies have proven that traditional investment funds with an active fund management fall behind the market return in the long term while also causing significantly higher costs.

Therefore, Ginmon invests exclusively in ETFs and other index funds making sure that you have the most profitable investment in the long-term.

How do I choose the right investment strategy for me?

The choice of your investment strategy depends on your personal preferences regarding your expected return as well as the possible volatility of your investment. Investment strategies with a greater proportion of shares have a higher expected return but may also fluctuate more in their value than strategies with a lower proportion of shares tend to do.

If you are unsure which investment strategy to choose, we recommend you determine your investment style via our specially developed interview. By answering seven short questions you will determine your individual investment style in less than two minutes.

Can I change my investment strategy?

You can change your strategy in our customer center via the button “Change investment strategy” in the menu “Overview”.

Please bear in mind that you pursue a long-term investment philosophy at Ginmon. The fundamental idea is to keep the investment strategy both in strong and difficult market phases. Accordingly, we discourage any short-term responses. So-called market timing with frequent changes of the investment strategy has been proven to lead to poorer results.

If you wish to modify your strategy regardless, you can always re-use the risk interview to evaluate your alternatives.

Why don't I invest in commodities at Ginmon?

At Ginmon, you invest in a large number of productive companies and economies through cost-efficient investment products such as ETFs and other index funds. Commodities, however, cannot be classified as productive capital as by and of themselves they do not create any economic value added. Any price increases only occur through shifts in supply and demand. These kinds of value changes are speculative profits not suitable for a long-term investment strategy.

An often-cited reason for using commodities as an investment is their low correlation with shares that was observed in the past and that could lower the risk of the overall portfolio. Since the correlation has not been particularly low for several years, Ginmon has decided against any investments in commodities.

Why do I not invest in real estate at Ginmon?
Investments in real estate funds currently imply high ongoing management fees for the product providers that undo the potential added value of our investment strategy. Until we do not get access to cheaper and more transparent investment funds in the German market, we renounce investments in real estate at Ginmon.
What is meant by rebalancing?
Rebalancing is the continuous adjustment of your portfolio to the predefined composition of your investment strategy. As the various asset classes in any portfolio will develop differently, their relative weights will change over time. To consistently apply your investment strategy you can run an automated rebalancing once you are logged into your account once a year. You will be made aware of that via email separately as soon as this option is available for you.
How does Ginmon predict the value development of the strategy portfolios?

The predicted value development of a chosen strategy portfolio is based on historical data and on a statistical simulation model. The outlined areas in the investment planner describe the results of the simulation model for all scenarios with a probability of occurrence of 90 percent.

The data for the return simulations is based on the historical monthly return of the underlying indices (MSCI World, MSCI Emerging Markets, Dimensional International Small Cap Index) since 1988. Due to the better data availability, the return forecast for bonds is generally simulated by using the historical euro short-term rate (Dimensional Returns Program) data.

The respective weighted historical value fluctuations of the underlying indices are used as the calculation basis for the expected value development as well as for the variation of the respective investment strategies. The predicted value development also includes all the service fees of Ginmon amounting to 0.39 percent per year and a profit-sharing of 1/10 of the overall return. The external expenses for the product providers are also included. The predicted value development assumes a monthly reinvestment of the dividend earnings and a continuous re-balancing to maintain the planned asset allocation.

Which investment concept do I pursue with Ginmon?

The investment concept of Ginmon is based on scientific findings of modern portfolio theory (efficient market hypothesis of Professor Eugene Fama).

At Ginmon, we have developed an investment strategy that is free of predictions and speculations and gains the highest return for each risk level in the long-term. With Ginmon, you do not invest in single stocks or bonds but broadly diversified in thousands of companies and the entire global economy. In this way, you remain independent of the development of individual world regions and benefit from a continuous growth of the global economy. Additionally, the asset classes of stocks and bonds are weighted according to your personal investment profile by combining several index funds.

The Ginmon investment concept is based on a buy and hold strategy. We don’t try to buy or sell in specific market phases, but instead, we stay invested in the global market for as long as possible. Many scientific studies prove that in the past the highest returns were usually achieved in this way.

In addition, the automation of Ginmon’s technology platform leads to significant cost savings that are passed on directly to the customers. At Ginmon, you save up to 60 percent of the fees incurred by conventional investment fund products.

Miscellaneous

Where can I ask more questions / suggestions?

It is our goal to offer you financial investments as simple and as easy to use as possible. In case you still have any further questions, please contact us by phone during our office hours at 069 153227340. You can also use our internet chat function via the button along the lower left portion of your browser. And of course, you can contact us via email at service@ginmon.de.

I do not live in Germany, can I become a customer?

Anyone having a bank account within the Single Euro Payment Area SEPA (with IBAN) can generally open an account at Ginmon. In this case their place of residence and nationality are irrelevant.

You can easily provide your proof of identity via the PostIdent procedure of Deutsche Post. You have two options to do so:

1. In person at any branch of Deutsche Post.

2. Or more conveniently via video verification at home (both in Germany and abroad).

The Ginmon website is not displayed correctly. What can I do to ensure correct display?

ginmon.de is continuously tested on any common browsers. In case content of the website is not displayed correctly, please send us a short notice to service@ginmon.de. Thank you.

Can I also use Ginmon on my smartphone or tablet computer?

The Ginmon website is optimized for mobile devices as well. Just open Ginmon in your browser on your smartphone or tablet computer.

Where can I find the general terms and conditions as well as the list of prices and services of Ginmon?

The latest version of our general terms and conditions, as well as the price and service list, can be found at: https://en.ginmon.de/contract-documents/

I want to know more about financial investments. Where can I find the Ginmon blog?

Our blog will give you tips and background information regarding your personal finances. We are deeply convinced that you can manage your private wealth successfully without any major efforts or prior experience.

Take a look!

  

 

 

Mainzer Landstraße 33a
60329 Frankfurt am Main
Phone +49 69-15322-7340