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With interest rates persistently low, managing capital is growing increasingly difficult. Plus, the current low returns on savings products look set to stay. How can you make the right decisions for your portfolio in this context?

We spoke with Ricardo de Sousa, a Private Banking Advisor at Banque de Luxembourg, to find out.

We spoke with Sandra Giunta, a Senior Private Banker at Banque de Luxembourg, to find out.

Low interest rates, low yields: is the outlook as bad as it seems?

Interest rates have indeed been persistently low. This is an issue in most developed economies including the European Union, the United Kingdom, Japan and the United States. Some have even reached all-time lows.

While this may be good news for people looking to take out a loan, it is not great for investors, who are having more and more trouble generating returns without undue risk. This also seems unlikely to change anytime soon.

What are the best investments?

Returns on savings are at historic lows, if they aren’t zero or even negative. What’s more, hopes of an improvement in the short or medium-term appear to have been dashed.

But despite the uncertainty weighing on the markets, there are real opportunities for investors to grow their capital over the long term. An approach focused on risk management, where assets are entrusted to a specialist, is now more important than ever. One excellent example of this is the discretionary management mandate.

Appointing an asset manager: what are the benefits for the investor?

Above all, you get a proven, active management service focused on capital preservation and growth. This management also enables consistent performance over time. In the long term, this performance is significantly higher than inflation, contrary to savings accounts.

You should speak to an adviser to determine the most suitable level of risk, from the most cautious to the most dynamic. This gives you the assurance that your portfolio will be perfectly tailored to your investor profile. A discretionary management mandate frees you from all the constraints involved in daily portfolio management.

What returns can investors expect?

If you had invested EUR 100,000 in 2004 in our Banque de Luxembourg discretionary management fund – balanced profile, i.e. bearing a moderate level of risk – you would now have more than EUR 200,000. *

If you had invested EUR 500,000 in 2004 in our Banque de Luxembourg discretionary management fund – balanced profile, i.e. bearing a moderate level of risk – you would now have more than EUR 1,000,000. *

Don’t miss out on the next 15 years!

Find out more

To find out more, visit www.banquedeluxembourg.com/15years

To find out more, visit www.banquedeluxembourg.be/15years

Ricardo de Sousa
Private Banking Adviser

 

Sandra Giunta
Senior Private Banker

* Annualised performance net of fees over 15 years from 01/01/2004 to 31/08/2019 of our balanced management mandate, which aims to outperform the bond market with lower volatility than an equity investment, while accepting a certain degree of fluctuation in value. Past performance does not constitute a guarantee of future performance. All investments are subject to risks including risks of capital losses.

* Annualised performance net of fees over 15 years from 01/01/2004 to 30/09/2019 of our balanced management mandate, which aims to outperform the bond market with lower volatility than an equity investment, while accepting a certain degree of fluctuation in value. Past performance does not constitute a guarantee of future performance. All investments are subject to risks including risks of capital losses.

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