Fund management companies (2024)

Fund management companies must be authorised by FINMA. Any significant changes in circ*mstances or intention to cease operations must be approved by FINMA.

Fund management companies manage investment funds for the account of investors and are responsible, among other things, for choosing which investments to make. They are subject to authorisation requirements.

Authorisation requirements

Fund management companies require authorisation from FINMA. A fund management company must meet the following requirements (Arts. 32 ff. FinIA and 49 ff. FinIO):

  • it must be organised as a limited company with its registered office and administrative centre in Switzerland;
  • it must meet the minimum capital requirements;
  • the board of directors must have at least three members;
  • the share capital must be divided into registered shares;
  • the company must have an organisation appropriate to its role;
  • those responsible for managing the fund management company must be independent of the custodian bank, and vice versa.

Role of a fund management company

Fund management companies manage at least one collective investment scheme subject to approval autonomously in their own name for the account of investors (Art. 34 FinIA and Art. 49 para. 1 FinIO). In particular, they perform the following tasks:

  • decide on the issuing of units, the investments and their valuation;
  • calculate the net asset value;
  • set issue / redemption prices and profit distributions;
  • exercise all the rights associated with the investment fund.

Under Article 54 para. 1 FinIO), fund management companies are also responsible for:

  • representing foreign collective investment schemes;
  • acquiring stakes in companies whose main purpose is to operate collective investment schemes;
  • managing unit accounts.

Changes in circ*mstances

Fund management companies must inform FINMA of any change in circ*mstances crucial to the granting of authorisation. Any significant changes are subject to prior authorisation by FINMA before resuming operations (Art. 8 FinIA in conjunction with Art. 10 FinIO). Prior authorisation must also be obtained for changes to business activities such as when taking on the management of limited qualified investor funds (L-QIF).

Cessation of an activity for which approval is required

Any intention to cease fund management operations requires prior approval from FINMA (Art. 8 FinIA). The regulatory auditor will also be asked to give its opinion of the intended action.

Information and templates

When applying for authorisation, application templates are available on the EHP survey and application platformand the following documents can be used.

Applicants must self-registervia the FINMA homepage to gain access to the EHP. Following self-registration and the review by FINMA, they will be able to access the EHP through the FINMA portal via two-factor identification.

The following unfolded application template serves as a guide and cannot be used as an application.

Fund management companies (2024)


What does a fund management company do? ›

In the financial world, the term "fund management" describes people and institutions that manage investments on behalf of investors. An example would be investment managers who fix the assets of pension funds for pension investors.

What are the best fund management companies? ›

Insider Intelligence has put together a list of the top investors and wealth management companies — Betterment, Vanguard, Moneyfarm, Robinhood, Advizr, Nutmeg, Wealthfront, Habito, Hydrogen, Sigfig, Scalable Capital, Mint, Wealthsimple, and Charles Schwab.

What are the top 5 wealth management companies? ›

The top 5 are: 545 Group, Jones Zafari Group, The Polk Wealth Management Group, Hollenbaugh Rukeyser Safro Williams, The Erdmann Group.

Who are the biggest fund managers? ›

Rankings by Total Managed AUM
RankProfileManaged AUM
3.Charles Schwab$7,320,000,000,000
4.State Street Corporation$4,340,000,000,000
92 more rows

Is it worth having a fund manager? ›

The main benefit of investing in a fund is trusting the investment management decisions to the professionals. That's why fund managers play an important role in the investment and financial world. They provide investors with peace of mind, knowing their money is in the hands of an expert.

How does a fund manager get paid? ›

Most mutual fund managers get a base salary each year, plus other forms of compensation that bring them well beyond that. Compensation comes from a base salary, fulcrum fees, deferred compensation plans, equity and stock options, performance bonuses for the company and teams, and nonmonetary benefits.

What is the average cost of fund management? ›

Managed fund fee types
DescriptionApplies toWhat's normal
Investment or indirect cost ratio How much you have to pay to your investment manager.Account balance0.15% to 1.5%
Performance Bonus fee paid to your investment manager if they do very well.Account balance0.1% to 0.5%
4 more rows

What is the highest salary of a fund manager? ›

Fund Manager salary in India ranges between ₹ 3.0 Lakhs to ₹ 93.0 Lakhs with an average annual salary of ₹ 28.7 Lakhs. Salary estimates are based on 279 latest salaries received from Fund Managers.

Who is the world's top fund manager? ›

Great money managers are the rock stars of the financial world. While Warren Buffett is a household name to many, to stock geeks, the names of Benjamin Graham, John Templeton, and Peter Lynch are cause for extended discourses on investment philosophies and performance.

Who is the most trustworthy financial advisor? ›

The Bankrate promise
  • Top financial advisor firms.
  • Vanguard.
  • Charles Schwab.
  • Fidelity Investments.
  • Facet.
  • J.P. Morgan Private Client Advisor.
  • Edward Jones.
  • Alternative option: Robo-advisors.

Who manages wealthy people's money? ›

A wealth management advisor is a high-level professional who manages an affluent client's wealth holistically, typically for one set fee. This service is usually appropriate for wealthy individuals with a broad array of diverse needs.

What financial advisors do rich people use? ›

Wealth advisors are a type of financial advisor who typically work with very wealthy clients and offer holistic financial planning, including services such as estate planning, tax help and legal guidance, in addition to investment management.

How much should I pay a fund manager? ›

‍Advisor (Management) Fees

The industry typically refers to this as an investment management fee and averages between 1-2% of assets (i.e. A $100,000 investment could cost you between $1,000 - $2,000 annually).

What percentage do fund managers take? ›

Virtually all investment trusts are actively managed. However, their annual management fees – the payment to cover the investment manager's costs – can vary widely from under 0.5% to over 2%.

How do I choose a good fund manager? ›

  1. Good fund managers change their strategy. As more capital pours into private equity and as private markets mature, existing managers are expanding into new asset classes, industry sectors and strategies. ...
  2. Choose a fund manager who will do well in a poor market. ...
  3. Think about working culture. ...
  4. Look forwards, not backwards.
Jan 18, 2022

What are the primary functions of funds management? ›

The purpose of funds management is to ensure adequate liquidity and effectively manage the spread between interest earned and interest paid. Therefore, funds management has two compo- nents: liquidity and interest rate risk manage- ment.

What is the role of fund management industry? ›

Fund managers are responsible for making sure that accurate accounting records are kept for investment funds. You could also be involved with implementing investment strategies and managing trading activities. This high profile financial services role is most commonly available in private equity companies.

What does a fund services company do? ›

Fund administration is a third-party service that handles an investment fund's accounting, limited partner (LP) reporting, asset valuation, capital calls, and capital distributions. Any type of investment fund may use fund administration services, including private equity funds and hedge funds.

What does a fund manager do on a daily basis? ›

Deciding what companies to invest in, putting together a portfolio that suits the mandate of a client, managing it, and making sure it fits the risk tolerance of the client. And lastly servicing institutional clients and distributors.


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