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Our Philosophy

Our philosophy is to provide unbiased top quality investment services

and solutions tailored to your individual needs, objectives and risk

tolerance based on a strong research platform, a robust investment

process and sound risk management. While capital preservation is

our top priority our investment team with several decades of

combined experience in financial markets aims to capitalize on

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Introduction

A strong research platform is the foundation of our investment services offering. This We do so without taking undue risk in an attempt to add incremental returns. Preservation and growth of capital while at the same time producing an income stream

are at the core of our investment approach.

Based on your return expectations we develop an investment strategy and define the most suitable asset allocation to achieve your objective.

The starting point of our relationship, when it comes to managing your wealth, is to work with you in order to thoroughly understand your investment needs and determine your

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Introduction

We are using an internal consolidation and reporting tool which enables us to We take a disciplined and multi-level approach to risk management with the aim of minimizing losses and optimize the risk/reward ratio. Preservation and growth of capital

while at the same time producing an income stream are at the core of our investment approach without taking undue risk in an attempt to add incremental returns. Our open architecture business model ensures our investment services are delivered in an unbiased way to suit your needs. This means we have no financial incentives to prefer

one investment product or third-party manager over another. The sourcing of investment products involving all investable asset classes is of critical importance to us.

A solid investment process highlights the role of both strategic and tactical asset allocation from a top-down perspective as well as manager and security selection from a

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Investment Services

R e s e a r c h

A strong research platform is the foundation of our investment services offering. This enables us to deliver customized investment solutions either on the basis of discretionary asset management or active investment advisory services.

We are using multiple research sources each one specialized in a specific area. This includes research on big picture themes like global macro economic developments, geopolitics, sociological trends, new technologies, climatic influences, just to name a few. This is complemented by company specific fundamental research as well as financial market related technical research covering all major asset classes.

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Investment Services

D i s c r e t i o n a r y A s s e t M a n a g e m e n t

Discretionary asset management is the major component of our asset management offering.

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Investment Services

A c t i v e a d v i s o r y s e r v i c e s

If you prefer a more “hands-on” approach to managing your investments our active advisory services may be what you are looking for. This includes regular interaction between you and our team of advisors and in depth discussion of investment strategy and ideas.

As an active advisory client you are directly involved in your investment or trading strategy . You decide to what extent you wish to participate in the investment decision making process and how active a role you wish to play in its implementation.

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Investment Services

S u b s c r i p t i o n b a s e d a d v i s o r y s e r v i c e s

If you are a financial advisor, asset manager or a family office and wish to outsource some or all of your research capabilities our subscriptions based advisory services may be for you.

Outsourcing offers cost advantages over hiring an in-house investment team whose quality is untested. We offer a wide range of services, such as providing investment strategy reports with specific recommendations, model portfolios including re-balancing, membership in your investment committee as an external advisor, personalized portfolio evaluations with switch and re-balancing recommendations. We can also provide white labeling of our reports.

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Investment Services

P o r t f o l i o e v a l u a t i o n

If you have an existing investment portfolio you wish to have analyzed and evaluated by an experienced professional you may want to talk to us.

We evaluate your investment portfolio and come up with recommendations for re-balancing and repositioning of individual portfolio components. This could be with the aim of either enhancing your potential return or reducing the risk by making timely shifts in your holdings.

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Investment Process

I n v e s t m e n t C o m m i t t e e

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Investment Process

I n v e s t m e n t C o m m i t t e e

The members:

Hans Goetti, Chief Investment Officer, Finaport Alex Borissov, Senior Partner, Finaport

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Investment Process

Portfolio Construction Tactical Asset Allocation Implementation and monitoring Risk Management Strategic Asset Allocation

The Strategic Asset Allocation represents an asset mix that will provide the optimal balance between expected risk and return over a medium to long-term investment horizon.

Fund selection involves the analysis of criteria such as performance track record, volatility, Risk management

is our top priority. We use tools designed for downside protection of portfolios that allow for monitoring and

The portfolios are constantly

monitored. Any position that either has reached its price target or its downside risk level is re-evaluated. Based on this, a decision is made as to whether action should be taken.

Tactical asset allocation is derived from the strategic asset allocation. Short term market relevant fundamentals as well as technical factors are evaluated. This forms the basis for the tactical asset allocation.

Top Down Analysis

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Investment Process

S t r a t e g i c A s s e t A l l o c a t i o n

Our Strategic Asset Allocation specifies the proportional combination of various assets classes based on expected rates of return for each one of them. The goal of our Strategic Asset Allocation procedure is to create an asset mix that will provide the optimal balance between expected risk and return over a medium to long-term investment horizon. The framework of the Strategic Asset Allocation process is periodically evaluated and allows for minor modifications when material changes in the investment landscape occur. This can be shifts in longer-term growth rates, a change in inflation expectations or a shift in risk

premiums.

After we have determined objectives and risk profiles, we compose one or more

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Investment Process

T a c t i c a l A s s e t A l l o c a t i o n

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Investment Process

S e c u r i t y S e l e c t i o n

The aim of our bottom-up analysis is the selection of individual investments across asset classes. These can either be long only funds, hedge funds or individual securities. Security selection is the responsibility of the portfolio manager. When it comes to fund selection the portfolio manager analyzes criteria like performance track record, volatility, transparency, fee structure and investment style. Individual security selection involves the analysis of metrics like earnings revisions trends, valuations, technical trends and dividend policy. To this end we utilize a quantitative screening tool which helps us to filter the most attractive assets through statistical computations. This enables us to identify individual asset types that are able to generate alpha, have a favorable risk/reward ratio compared to a

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Implementation

B o n d S e l e c t i o n

Our portfolio managers leverage off information derived from experience, information and close connections with leading investment banks. The decision making process begins with deep knowledge and understanding of the companies and industries within a particular sector.

Our decisions are based on fixed income research sources taking into account rating changes, specific credit movements and most importantly liquidity. Credit research is provided by top research desks which allows us to make informed decisions across all sectors.

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Implementation

E q u i t y S e l e c t i o n

Our equity selection process relies to a large extent on external research sources and a sophisticated screening tool. Our equity selection process involves managed equity funds, passively managed ETF investment and individual stocks.

When it comes to the selection of funds we have access to quantitative data bases which measure quantitative metrics like Sharpe ratio as well as participation in up and down markets. This quantitative screening will help to filter and narrow the number of fund to a handful of managers with proven ability in their investment space or style.

The selection of individual stocks relies to a great extent on a sophisticated screening tool which helps us to apply various filters to a universe of stocks. These filters can be

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Implementation

T r a d i n g

We are putting a great deal of emphasis on a strong trading platform. This is to ensure best trade executions for your investment portfolio.

Every order for discretionary portfolios is processed by our asset management team. We execute all trades for your investment portfolio through our custodian banks where we are dealing with a dedicated desk catering to asset managers like us.

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Implementation

M o n i t o r i n g

All investment positions in your portfolio are monitored on an ongoing basis by the asset management team. We run real live screens to monitor all intraday traded instruments. We are monitoring all positions on a real time basis to make sure any erratic price movements are spotted in a timely manner. The return numbers are checked against the representative benchmark or peer group.

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Implementation

R e b a l a n c i n g

Rebalancing is the process of realigning the different asset class weightings of the portfolio to the originally defined risk profile. The frequency of buying and selling assets in the portfolio to maintain the desired level of asset allocation depends on several factors:

Market performance: A shift within the portfolio can happen through performance impact of certain asset classes. This happens when an asset class either out- or underperforms the remaining portfolio

components and requires to be brought back to the appropriate level.

Inflows or outflows: Moves occur when cash or securities flow in or out of the portfolio. In these cases the portfolio is reviewed and action is taken to bring the portfolio in line with the your investment

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Risk Management

We take a disciplined and multi-level approach to managing risks with the aim of minimizing unanticipated losses and optimize the risk/reward ratio. The are many dimensions to risk, such as market risk, liquidity risk, investment risk, governance risk, segregation of functions, and oversight and adoption of appropriate policies and procedures.

The key market risk factors within the portfolio are closely and actively monitored by the portfolio manager and overseen by the Head of Risk Management. There are clear concentration limits by issuers, sectors and countries and a maximum cap on leverage as specified in our risk management guidelines.

The portfolio is checked regularly if the weight of the asset classes is within the defined limits. This is to ensure no excessive risk is taken in your portfolio.

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Reporting

Good quality portfolio reporting is of great importance to us. Our consolidation and reporting tool enables us to generate a large amount of information, such as performance numbers, portfolio in and outflows and a full list of transactions on a daily basis among others.

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Benchmark Portfolios

Our benchmark portfolios show the performance of the various portfolio structures over a multi-year time horizon, i.e. since the beginning of 2002.

They represent our strategic asset allocation for five different risk categories as well as the ranges for the tactical asset allocation.

We distinguish between five risk categories:

Level 1: Conservative (Preservation of capital)

Level 2: Moderate (Preservation of capital, generation of income)

Level 3: Balanced (Capital appreciation, long term consistent growth)

Level 4: Growth (Above average returns, capital appreciation)

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Benchmark Portfolios

Asset Classification Cash or cash equivalent (incl. fiduciary investments)

Bonds (fixed term investments, investments in standardized or tailed-made (OTC) derivative instruments)

Equity and equity investment funds or in derivative instruments, mainly based on stocks Alternative Investments incl. Commodities, precious metals, hedge funds

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Benchmark Portfolios

Cash Index

USD 100% LD12TRUU

Bonds

Investment Grade 70% IBOXIG Index

High Yield 20% IBOXHY Index

Emerging Markets 10% DBLQBLTR Index

Equities

Global Equities 100% NDDUWI

Alternatives

Precious metals 70% GOLDS Comdty

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Benchmark Portfolios

Conservative Absolute Return +71.06% Annualized Return +5.51% Monthly Volatility 5.52% Maximum Drawdown -13.59%

Nov03 Nov05 Nov07 Nov09 Nov11 Nov13 100% P er f o r m a n c e

Trader RISKLEVEL1 vs. Constituents

Barclays U.S. Tr Bills: 1-3 Mo (17.1%) iBoxx $ Liquid Investment Grad (73.7%) iBoxx $ Liquid High Yield Inde (99.8%) DBIQ Emerging Markets USD Liqu (159.7%) MSCI Daily TR Net World USD (104.3%) DJUBS Commodity TR (15.6%) Credit Suisse Hedge Fund Index (86.4%) GOLD SPOT $/OZ (214.6%)

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Benchmark Portfolios

Moderate Absolute Return +81.50% Annualized Return +6.13% Monthly Volatility 6.28% Maximum Drawdown -16.60%

Nov03 Nov05 Nov07 Nov09 Nov11 Nov13 100% P er f o r m a n c e

Trader RISKLEVEL2 vs. Constituents

Barclays U.S. Tr Bills: 1-3 Mo (17.1%) iBoxx $ Liquid Investment Grad (73.7%) iBoxx $ Liquid High Yield Inde (99.8%) DBIQ Emerging Markets USD Liqu (159.7%) MSCI Daily TR Net World USD (104.3%) DJUBS Commodity TR (15.6%) Credit Suisse Hedge Fund Index (86.4%) GOLD SPOT $/OZ (214.6%)

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Benchmark Portfolios

Balanced Absolute Return +95.66% Annualized Return +6.93% Monthly Volatility 8.54% Maximum Drawdown -24.72%

Nov03 Nov05 Nov07 Nov09 Nov11 Nov13 100% P er f o r m a n c e

Trader RISKLEVEL3 vs. Constituents

Barclays U.S. Tr Bills: 1-3 Mo (17.1%) iBoxx $ Liquid Investment Grad (73.7%) iBoxx $ Liquid High Yield Inde (99.8%) DBIQ Emerging Markets USD Liqu (159.7%) MSCI Daily TR Net World USD (104.3%) DJUBS Commodity TR (15.6%) Credit Suisse Hedge Fund Index (86.4%) GOLD SPOT $/OZ (214.6%)

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Benchmark Portfolios

Growth Absolute Return +108.22% Annualized Return +7.60% Monthly Volatility 11.49% Maximum Drawdown -36.62%

Nov03 Nov05 Nov07 Nov09 Nov11 Nov13 100% P er f o r m a n c e

Trader RISKLEVEL4 vs. Constituents

Barclays U.S. Tr Bills: 1-3 Mo (17.1%) iBoxx $ Liquid Investment Grad (73.7%) iBoxx $ Liquid High Yield Inde (99.8%) DBIQ Emerging Markets USD Liqu (159.7%) MSCI Daily TR Net World USD (104.3%) DJUBS Commodity TR (15.6%) Credit Suisse Hedge Fund Index (86.4%) GOLD SPOT $/OZ (214.6%)

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Benchmark Portfolios

Aggressive Absolute Return +117.72% Annualized Return +8.08% Monthly Volatility 13.03% Maximum Drawdown -40.93%

Nov03 Nov05 Nov07 Nov09 Nov11 Nov13 100% P er f o r m a n c e

Trader RISKLEVEL5 vs. Constituents

Barclays U.S. Tr Bills: 1-3 Mo (17.1%) iBoxx $ Liquid Investment Grad (73.7%) iBoxx $ Liquid High Yield Inde (99.8%) DBIQ Emerging Markets USD Liqu (159.7%) MSCI Daily TR Net World USD (104.3%) DJUBS Commodity TR (15.6%) Credit Suisse Hedge Fund Index (86.4%) GOLD SPOT $/OZ (214.6%)

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Benchmark Portfolios

Conservative Moderate Balanced Growth Aggressive

Absolute Return

+71.06% +81.50% +95.66% +108.22% +117.72%

Annualized Return

+5.52% +6.13% +6.93% +7.60% +8.08%

Monthly Volatility

5.52% 6.28% 8.56% 11.49% 13.03%

Maximum Drawdown

-13.59% -16.60% -24.72% -36.62% -40.93%

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Disclaimer

The material provided herein is for informational purpose only. It does not constitute an offer to sell or solicitation of an offer to buy any interest in alternative investments or any related vehicle. Any such offering will occur only in accordance with the terms and conditions set forth in the offering memorandum pertaining to such funds if and when offered.

References

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