The Source of Purposes

In Vienna, the school holidays have begun and with it the vacation season. There is one thing I will miss during the summer months. Taking my son Konstantin to kindergarten or my daughter Ella to elementary school. In those few minutes of walking hand in hand down the street, skipping and sometimes running, the meaning of my being a parent is revealed. In mindfulness of the daily routine lies the beauty of life. 

The Why of what we do leads to purpose. This is true for humans and for businesses. Sure, companies must achieve economic success. Only with it, can salaries and rent be paid and dividends distributed to the owners. However, it is purpose that enables long-term success for businesses. 

Guard and protect

We do not see ourselves as representatives of the principal-agent theory. The principal would be the wealthy client and the agent would be us as the wealth manager. This theory deals with the challenges of incomplete information, different goals and the conflicts that come with them. 

I find the stewardship model far more appropriate. “Stewardship was originally made up of the tasks of a domestic steward, from stig (house, hall) and weard (ward, guar, guardian, keeper).” (Source Wikipedia). The term encompasses responsibility for outcomes and protecting the assets of others. 

Solidarity and loyalty play a major role in the relationship between the principal (our client) and us, the steward. My colleagues and I do not limit ourselves to our respective functions in the company, but we always have the goals and needs of our clients firmly in mind. 

This also explains why we are the only bank in Austria that has decided to offer independent investment advice in accordance with the MiFID II regulations. We do not accept any proceeds from third parties and are independent of commission payments from product providers. 

However, many things that are important cannot be covered by any law or regulation. At Gutmann, we treat the capital entrusted to us by our clients with care every day, guarding and protecting it. This is the breeding ground and garden in which we can take the necessary risks to invest the assets profitably and let them grow. True to our motto: Value. And how to create it.