Focus on Diversification, Creditworthiness and Liquidity
We strive to build portfolios with attractive risk/return attributes and reasonable liquidity. The selection of a particular investment is based on both, the expected return and on potential diversification effects for the entire portfolio. In other words, our objective is to take advantage of potential benefits from diversification while not over-diversifying. We consciously distinguish between return drivers and diversifiers.
Fixed Income – Portfolio risk can be significantly reduced by adding high quality fixed income securities. In order to achieve maximum risk reduction we use (high quality) bonds in the reference currency of the client and abstain from (higher yielding) foreign currency debt instruments.
Equities – We invest in single stocks, usually blue chips, in the client's reference currency. For international stocks and/or special topics (e.g. small caps, emerging markets, frontier markets etc.) we prefer mutual funds. As the importance of emerging markets will increase in the future we place a significant emphasis on this space.
Investment Funds – As an independent asset manager, we apply an open architecture and therefore are free in the choice of funds. The selection is made solely on the basis of quantitative and qualitative criteria and individual consultations with the fund managers.
Alternative Investment Strategies (AIS) – AIS constitute an important part of a well-diversified portfolio. As AIS we define all investments that do not fall under the high quality fixed income or stocks category, e.g. high-yield bonds, real estate, commodities, hedge funds, private equity, etc. This expertise we also offer separately within individualized mandates.