Discretionary Portfolio Management. For Private Investors

Transcription

1 Discretionary Portfolio Management For Private Investors

2 What do we understand by Discretionary Portfolio Management? Cornerstones of our investment philosophy Active management of the client s tailor-made portfolio Individual focus on client-specific investment guidelines Our bank s experts manage your portfolio Regular formulation of the bank s general investment policies Use of state-of-the-art information technology Defining a client s reference currency CHF, EUR, USD Defining a client s risk tolerance What level of short and medium term portfolio value fluctuations is the client prepared to accept? Individually tailored investment horizons for the optimum risk and return In the long term equities are the most attractive investments, but in the short term the investor faces higher volatility. Attention to the client s individual needs What is the investment objective of the client? Are there financial needs in the foreseeable future? What are the tax related aspects? 3 Risk management Protects your assets

3 Our investment philosophy 4 Fundamental top-down analysis Early recognition of trends in the real economy and their impact on currencies, interest and stockmarkets. Strong focus on credit quality for bonds Bond selection focused on securities with investment grade rating (BBB - AAA) or comparable quality. Disciplined process of stock picking Investment only in carefully picked shares with an emphasis on blue chips ( large capitalization shares ) Derivative instruments used mainly for hedging Hedging mostly means the temporary selling of forward positions with the benefit of a reduction in overall exposure. Stocks, bonds and currencies can all be hedged. Emphasis on the principle of diversification A spread of various investments in individual securities, sectors, countries and issuers significantly reduces portfolio volatility and enhances long-term risk-return ratios Regular performance - overview Detailed breakdown of current investment valuations Performance calculations on a capital-weighted basis 5

4 Our investment process A combination of overall economic and firm specific developments: Bottom-Up Approach Fundamental Bottom-Up financial analysis Evaluation of the relative appeal of individual stocks and sectors by comparing business models, key financial data and technical market factors (i.e. technical analysis) r s c to n t S e pme lo ve and Portfolio optimisation Benefits of diversification Improvement of long-term risk-return ratio De Top-Down Analysis Macroeconomic Top-Down analysis Economic analysis determines the geographical allocation and sector choices Macro Economic Analysis Cu A n r ren al y c y si s 6 Optimum Portfolio E ar e x p e nin g s c t at i o ns on ua t i E v al h e o f t ss ne b u si g y te a r t s 7

5 Upper Acceptable Risk Limit Long-term risk-return ratios Performance 8 Six investment profiles Income Fixed income securities, no equities Income special Emphasis on fixed-income and alternative securities Efficient Portfolio Range Conservative Emphasis on fixed income securities Optimum Portfolio Lower Acceptable Performance Limit Balanced and fixed income securities Growth Emphasis on shares, no fixed income securities Risk 9

6 Income Income special 10 Investment aims Preservation of capital in real terms with low risk exposure Holdings in bonds and other safe investments One to three years or longer Constraints No shares 20 % 80 % Investment aims Higher returns through use of fixed income securities of lower creditworthiness and alternative investments Low volatility Three years or longer Restrictions No equities 40 % 60 % 11 Fixed income securities The risk is rated higher than for the classic income strategy Fixed interest securities of varying quality alternative investments) alternative investments)

7 Conservative Balanced 12 Investment aims Moderate capital growth in real terms with low volatility in portfolio value 20 % Investment aims Long-term capital growth in real terms with moderate volatility in portfolio valuations 13 Three years or longer Three to five years 40 % 35 % Restrictions underweighted 30 % 50 % Restrictions and other securities in a balanced combination 25 % Fixed income securities alternative investments) Fixed income securities alternative investments)

8 Growth 14 Investment aims Substantial long-term capital growth with high portfolio volatility Investment aims Strong long-term capital growth with high portfolio value fluctuations 10 % 15 Over five years 40 % Over five years Restrictions No restrictions predominate 60 % Restrictions No fixed income securities 90 % alternative investments alternative investments

9 Fee structure for management mandates 16 Minimum amount CHF 500, or equivalent in other currencies Portfolio management fee: 0.50% to 1.00% p.a. Profiles Income, Income Special and Conservative 0.50% Profile Balanced 0.75% Profiles Growth and 1.00% Securities administration fees Securities account fee 0.30 % p. a. (fees of external custodians may be charged additionally) The fee structure of the bank is subject to change at any time.

10 How to find us Buchs Schaan Rhein 28 A13/E43 Vaduz Sevelen Austrasse Vaduz Liechtenstein Triesen Bank Alpinum AG Austrasse 59 PO Box Vaduz Principality of Liechtenstein Tel Fax info@bankalpinum.com

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