When you entrust your assets to us, we never lose sight of our prime responsibility - to protect your wealth and make it grow over time. Ours is a pragmatic methodology: we steer clear of passing trends and focus instead on prudence and transparency.
3 questions to Guy Wagner, Chief Economist
What does ‘contrarian’ investing mean?
Guy Wagner: Contrarian investing involves not adhering to the consensus, passing trends or the indices. It means sometimes acting differently from the rest of the market. This approach starts with the basic principle that equities become more attractive as markets fall and vice versa. It is why we tend to buy shares during market corrections and to sell when markets rise sharply. We do not invest in speculative markets, even though the markets can be irrational for long periods. In other words, we may do less well than the indices during some phases, but over the long term, our returns are generally higher.
Why adopt a long-term approach?
G. W. We consider that buying a share is comparable to investing in a business. When an entrepreneur invests in a business, it would never occur to them to sell their stake six months later.
Do you get good results?
G. W. We started developing this methodology twenty-five years ago. Over the years, it has been honed to its present form. We apply it rigorously and it has a track record of delivering positive results. However, our funds do not perform in line with the markets. Investors need to understand that our analysts and fund managers are positioned over the whole of an investment cycle and that our prudent approach may not suit all investors. In strong market rallies, we capture a large part of the upside, but not all of it. On the other hand, our losses are considerably less severe when the markets tumble. We tend to be among the first to buy – and also among the first to sell.
Our investment approach
Our investment strategy, developed by our in-house teams, is based on tried and tested principles, rigorously applied over time. It focuses on preserving your capital and achieving consistent long-term performance. We regularly receive awards from the financial press and international rating agencies for the quality of our portfolio management.
We offer a considered and resolutely active approach, based on sound experience and a stable team. Guy Wagner, Managing Director of BLI - Banque de Luxembourg Investments
Controlling risks and generating performance over the long term
We aim to generate above-market-average risk-adjusted performance over a full stock market cycle (generally around 15 years). Despite the inherent fluctuations in economic cycles, our portfolios will tend to outperform, especially during market corrections.