The great explorer of the truth, the master-builder of human happiness no one rejects dislikes avoids pleasure itself because it is pleasure but because know who do not those how to pursue pleasures rationally encounter consequences that are extremely painful desires to obtain.
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Philosophy, process and structure
Investment concept
Investment philosophy
Our actions have been guided by the following core ideas since 1981:
Flexibility
Flexibility means adapting to changing conditions: the market environment determines investment policy and not the other way round
Continuity
A straightforward investment process and portfolio structure ensure a coherent focus: clarity creates consistency
Direct investments
Deliberate avoidance of funds and derivatives ensures transparency, eliminates counterparty risks, and enables a direct relationship with the company
Security
Asset management means risk management first and foremost: the top priority is managing risks rather than returns
Focus on the reference currency
The reference currency forms the foundation, while opportunities are realised abroad: this reduces foreign-currency and political risks
Consistency
Our main objective is not to achieve the best, but the most consistent return year after year. This is reflected in our annualised return of over 6% since 1981.
Flexibility is particularly important to us, as it is only through flexibility that we are able to do justice to market conduct issues. Flexibility stands for the ability to adjust to underlying conditions that change rapidly – one of the most important premises in wealth management. Only those who accept and recognise changing times and act accordingly can increase their wealth in a medium- to long-term perspective.
Investment process
Our investment process, which has been tried and tested since 1981, is based on two fundamental approaches:
Solid foundation and
a long-term perspective
a long-term perspective
Before investment decisions are made, it is hugely important to first take an overarching view in order to gain a comprehensive understanding of the market-moving elements – macroeconomics and monetary policy. These factors are the engine that drives or slows down the financial markets in the long term. At the same time, it is important to analyse how the market players have positioned themselves, and for this we use technical analysis. Only then is it possible to make justified specific investments.
"Top-down" analysis
determines our investment, country and sector allocation
Targeted approach
Specific investments in equities are based on fundamental and technical analyses. The fundamental analysis utilises qualitative (activity, strategy, competition, decision-makers) and quantitative data (growth, profitability, risk evaluation) and forms the basis for why a share is held. Technical analysis involves analysing trends and determining entry points and price targets. The same factors, supplemented by other elements such as maturity and yield, are also applied to bonds. In principle, both analyses must be confirmed. The rule is: think like a fundamentalist, act like a technician!
"Bottom-Up" analysis
determines our choice of securities
Only a structured approach enables a consistent and at the same time flexible orientation of investment activities, based on simple and coherent thought processes. The more complicated a process is, the less clear its conclusions are, and this leads to rigidity, which, as we know, is rarely profitable.
Portfolio expansion
We strive to achieve continuous value growth for our clients. This can only be achieved with a careful and diversified portfolio structure that combines stability and growth. It is important to first lay the foundation before satellites are added to it as the situation demands.
Core investments
- Stable and long-term investments
- Shares of fundamentally first-class and established companies that have grown continuously over time
- Bonds issued by first-class borrowers, whether at government or corporate level
Satellite investments
- Short to medium-term investments
- Focus on turnaround companies and/or forward-looking topics or sectors
- Strong growth prospects
- Strategic risk positioning
Individually customised
The ratio of core investments to satellite investments of course depends on a client’s personal profile, i.e. their risk appetite, objectives and financial situation. It is therefore essential that a portfolio is individually tailored to the client.
Client support
For this reason, we not only aim to have an initial personal consultation but also to support our clients in their journey through life to ensure that their portfolio develops in parallel to their changing needs.