1. Select quality investments…

In equities, companies must comply with a set of qualitative criteria:

• Sound financial structure
• High return on equity
• Strong self-financing capacity

In bonds, our selection focuses on sovereign issuers from both developed and developing countries.

2 ... at reasonable prices

The price paid determines the return.

When investing in equities, we endeavour to identify companies whose share prices are trading below our assessment of their intrinsic value.

The weighting of equities in the portfolios we manage depends on our ability to find investments that we consider undervalued.

3. Retain a flexible management approach

In the current market situation, a passive buy-and-hold strategy is likely to produce disappointing returns in the years to come. In light of the situation, investors are advised to opt for an active management strategy.

Our management approach enables the share of equities and bonds to be varied in the portfolios.