Portfolio management: our approach
More than ever, our main objective is capital protection. We give priority to the long term and quality investments at reasonable prices.
Our portfolio management approach is based on four principles:
The companies selected meet a set of qualitative criteria: - Sound financial structure
- High return on equity
- Strong self-financing capacity
In bonds, we select mainly sovereign bonds from developed and developing countries. |
The price paid determines the return. When investing in equities, we seek to identify companies whose share price is trading below our assessment of the intrinsic value of the company. The equity weighting in the portfolios we manage is linked to our ability to identify stocks that appear undervalued. |
Given the current market situation, a passive buy-and-hold strategy is likely to produce disappointing returns in the years to come. The current environment is therefore right for an active management strategy. Our management approach involves a flexible approach to the allocation of equities and bonds in the portfolios. |
Companies and sectors considered ‘in fashion’ are by definition very expensive and therefore incompatible with our management principles. We stay away from products offering little transparency. Our clients can consult the exact composition of their portfolio and monitor performance at any time. |
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