An effective investment process has to take into account the changes in Economic & Financial Cycles over time.
Growing Your Assets in Bull Markets, and
Protecting Your Capital in Bear Markets
Concepts adapted to different phases of Economic and Financial cycles
Faced with the volatile nature of current financial markets, investors are more actively seeking wealth managers that are capable of adding value in different phases of economic and financial cycles – thus protecting their capital.
Our investment strategy is designed to capture long-term gains in markets in periods of growth and to benefit from risk control which limits the probability of market losses during periods of economic uncertainty.
Our active advisory processes encourage decision making and are incorporate systematic control procedures for a superior risk-adjusted returns for our clients.
Active Risk Management
The risks linked to active advisory decisions are managed through the systematic use of dynamic methods of investment management at several levels since only time performance control allows maximum capacity for action and reaction:
- Active allocation based on risk outperforms “buy and hold” strategies
- A non-consensus, anti-cyclical approach, that enhances asset protection
- Active management, generating performance, that avoids extreme allocations
- Daily investment committee meetings
- Daily risk management tool supporting fundamental analysis
- Daily confrontation of risk analysis with fundamental analysis
- Anticipation and identification of risk (ex-ante versus ex-post)
- The Daily Risk Analyzer: a proven in-house quantitative model used for over 15 years and constantly calibrated to incorporate new market dynamics
- Safety, liquidity, and transparency of both recommended investment products and direct investments
- A best-in-class approach for the selection of investment products
- No derivatives or hedge fund products selected unless requested by client
While the risk issue is often addressed by monitoring tracking error (risk relative to the reference index), we have always considered that it is also essential to a system of active control to truly manage investment performance.
Indeed, investment value added can only occur by means of active tactical investment decisions. The effects of these decisions must be analyzed and closely monitored to ensure that performance is developing in line with the expected trend.
It is also essential to have a clear policy of corrective action in the event of a trend change so that negative effects of non-performing investments are limited.
These different measures are an integral part of our investment process, and they contribute to the efficiency of our wealth advisory process.