The Compound Interest Investment Management AG
«… “… compound interest is a very serious thing, however, it is not in the slightest bit intuitive. It can hurl a debtor into the depths of a bottomless pit, or make a saver wealthy. Even though everyone knows this, its effect is underestimated over and over again. Despite its universal presence, for some reason it somehow or other manages to evade the powers of human imagination …” Zeit Online, 13 September 2006. The exponential effect of the wealth-creating system mentioned in this quote, is a cornerstone of our investment process. Admittedly, this does require a very long view. Here is an example to show how it compares: Quelle: Bloomberg; Index calculated in US Dollar.
As the arithmetical example above illustrates, over this long period of time only 25% to the total performance of the MSCI Europe Price Return Index is contributed by an increase in share prices. The remainder, namely 75%, was generated by the reinvested dividend. It can therefore be said, that /dividends are anything but pocket money and should be reinvested into existing shareholdings in a continuous process! This principle is so important to us that we have incorporated it into our company name: The Compound Interest Investment Management AG. CIIM The Compound Interest Investment Management AG (CIIM) was founded in 2009 and is a finance boutique in the asset management sector. Our goal is to uncover inefficiencies in the market and to exploit these to the benefit of our clients. We also believe that markets are neither efficient in times of stress, nor are they perfectly reflected by indices. We have therefore set ourselves the task of studying these indices closely to identify their weaknesses. The results of our research feed into our investment process and made available to the benefit of our clients. We are equally convinced that in the long run only a disciplined approach leads to the aspired goal, to generate alpha. This guiding principle helps us to hold a steady course both in good times and bad in order to generate added value for our clients over the long term.
Value investment is rather unexciting.
The majority of investors buy tyres for their own car at the cheapest price possible from a discount trader. However, the same investors buy shares in Michelin or Continental only when the share price is going up. Because they are afraid of going against the market! The consequence: more often than not they end up paying too much for their stocks. As value driven investors, we not only buy the tyres at a discount but also the shares. Hence, by definition, we focus on equities that the market overlooks. Some of the typical characteristics of this type of share are price / earnings ratio (P/E), price-to-book ratio (P/B), and price/sales ratio (PS). From the technical point of view, the numerator (here the price) was unable to keep up with the denominator (profit, book value, sales among other things). In the world of finance, these investors are called “Contrarians“; rather unexciting.
Since we cannot predict the future, we restrict ourselves to the present and attempt to gauge what it would take for the mean value to be reached again (reversion to the mean). This rarely happens instantly. On the contrary, this can at times take years; rather unexciting. We seldom find investment opportunities in the High Tech sector, in fact we invest in simple business models that we understand; rather unexciting. The typical investor in our funds has patience, is a disciplined investor and is not dependent on this part of his wealth for seven years or more; rather unexciting.
CIIM European Stock Portfolio
The CIIM European Stock Portfolio pursues a value-oriented investment style. This approach was originally employed exclusively for the benefit of high net worth private clients (HNWI) of a long-established and leading asset management company in Liechtenstein, where it has been consistently applied since 2004. Since then, it has been continuously improved on and refined by us.
As fiscal and regulatory issues have come increasingly to the fore, (we decided to open up the fund to a wider investor clientele and) the CIIM European Stock Portfolio Funds (UCITS) was launched in September 2006. You will find further details about our fund in our Factsheet.
Name Min. Investment Dealine Distribution Legal form / domicile Fund registration Bloomberg symbol Lipper / Reuters ISIN German WPK Security number KIID, Factsheet, subsciption form Prospectus, half-yearly and annual report NAV internet publication(daily)
CIIM European Stock Portfolio EUR 1 unit daily, at 12.00 pm none; dividends reinvested UCITS Fund / Liechtenstein Germany; Liechtenstein; Austria; Switzerland IFOSSIM LE EQUITY 65029285 LI0025828448 A0J3H8 2582844 IFM Independent Fund Management IFM Independent Fund Management IFM Independent Fund Management, Fundinfo, LAFV Liechtensteinischer Anlagefondsverband
Name Min. Investment Deadline Distribution Legal form / domicile Fund registration Bloomberg symbol Lipper / Reuters ISIN German WPK Security number KIID, factsheet, subscription form Prospectus, half-yearly and annual report NAV internet pulication (daily)
CIIM European Stock Portfolio EUR I > EUR 1 million daily, at 12.00 pm none; dividends reinvested UCITS Fund / Liechtenstein Germany; Liechtenstein; Austria; Switzerland IFCSPEI LE 68270198 LI0240109632 A114VZ 24010963 IFM Independent Fund Management IFM Independent Fund Management IFM Independent Fund Management, Fundinfo, LAFV Liechtensteinischer Anlagefondsverband
Name Min. Investment Deadline Distribution Legal form / domicile Fund registration Bloomberg symbol Lipper / Reuters ISIN German WPK Security number KIID, factsheet, subscription form Prospectus, half-yearly and annual report NAV internet publication (daily)
CIIM European Stock Portfolio EUR I hedge > EUR 1 million daily; at 12.00 pm none; dividends reinvested UCITS Fund / Liechtenstein Germany; Liechtenstein; Austria; Switzerland IFOESEH LE 68141981 LI0145286881 A1JR4V 14528688 IFM Independent Fund Management IFM Independent Fund Management IFM Independent Fund Management Fundinfo, LAFV Liechtensteinischer Anlagefondsverband
Board of Directors
«We are marathon runners, not sprinters!»
Stefan Riesen, CFA
CEO & Chairman of the Board, CIIM AG
Stefan Riesen has more than 30 years professional experience in trading, portfolio management and advising institutional clients.
Before taking up his executive position at CIIM, Stefan Riesen was Chief Investment Officer and Member of the Executive Committee, as well as Fund Manager, at Salmann Investment Management AG. Prior to this position, Stefan Riesen was entrusted by Goldman, Sachs & Co. with the establishment and management of the Institutional Sales Desk in Zurich.
Stefan Riesen is a Chartered Financial Analyst (CFA) and was awarded a MBA by the University of Chicago Booth School of Business.
Member of the Board, CIIM AG
Thomas Bergenroth is the Managing Director of Ciprini Consulting Establishment, with global asset management consulting mandates, mainly in Asia and China.
With over 25 years of professional experience in the global institutional financial services business and responsibility for strategy and clients, Mr. Bergenroth has held senior positions with State Street Corporation in Boston and Europe, Munich, including the State Street European Executive Board and various fund board mandates in Luxembourg.
Amongst others, in his consulting capacity at Ciprini, he is engaged as advisor to China’s leading asset manager, with the responsibility for the global strategy.
Thomas Bergenroth studied law at the LMU, Munich and has also completed various management courses at INSEAD, Columbia University and University of Michigan.
Member of the Board, CIIM AG
Otto Huber is Managing Partner of Claris Holding GmbH & Co KG, an Austrian consultancy company.
Prior to taking up this position, he was CEO of CREATIV Chemie GmbH, CEO of Skiny bodywear GmbH, Vice-President of Marketing and Sales at Huber Tricot GmbH and member of various boards of directors (amongst others, Beldona AG, Switzerland; Signa Berlin Holding GmbH, Vienna).
Otto Huber has extensive management experience, with the emphasis on company strategy, international marketing, sales, and the retail trade.
Otto Huber read Commercial Science at the Vienna School of Economics and graduated with a masters degree in commerce (Mag. rer. soc. oec.), and also holds a MBA from the University of Chicago Booth School of Business.
Member of the Board, CIIM AG
Peter-Mark Vogel is a founding partner of Manas Petroleum Co. in Baar and is a member of its management in an advisory capacity.
Prior to Peter-Mark Vogel taking over the responsibility for the analysis of Swiss technology companies with the bank, Sal. Oppenheim jr. & Cie. (Switzerland) AG in Zurich, he was responsible for the co-management of an European equity fund (EUR 400 million) and the analysis of European technology stocks at HSBC Guyerzeller bank AG in Zurich.
Peter-Mark Vogel read Business Administration at the University of Zurich and graduated with a masters degree (lic. oec. publ.), and holds a MBA of the University of Chicago Booth School of Business.