Profiles

With the help of their relationship manager, customers can select the profile that better suits their needs amongst one of the pre-defined below, or design individually tailored solutions:


Combo Defensive

This is a form of management particularly suited to those who prime stability of returns and whose objective is the capital preservation over a short to medium term. Time horizon suggested is 1-2 years.

This investment profile can include up to 20% alternative / hedge funds with the remaining 80% invested in money markets and bonds. The maximum currency risk is limited to 10% of the portfolio, the issuer risk to minimum "rating" levels equal to BBB- (S&P) or Baa3 (Moody's) and the interest rate risk to bonds having a maximum duration not exceeding 4 years.

Instruments used are liquid and quoted on a regulated market, so that availability of funds can be assured within short delays.

Expected returns would outperform prevailing money market conditions, whilst at the same time minimising volatility.


Conservative

This is a form of management particularly suited to those who accept some volatility of returns over time and a certain degree of financial risk. Investments are made in a medium-term time horizon with a suggested investment period of 3 to 5 years.

This investment profile can include up to 30% equity exposure with the remaining 70% invested in money markets and bonds. The maximum currency risk is limited to 30% of the portfolio, the issuer risk to minimum rating levels equal to BBB- (S&P) or Baa3 (Moody's) and the interest rate risk to bonds having a maximum duration of 7 years.

Most instruments used are liquid and quoted on a regulated market, so that availability of funds can be assured within short delays, with some specialised funds requiring longer liquidation periods.

Expected returns would outperform prevailing medium term bond market conditions, whilst at the same time minimising volatility.

Clients who do not want to invest in equities, can opt for a Conservative or Conservative Plus profile with 0 % equity.

(***)

Balanced

This is a form of management particularly suited to those who accept volatility of returns over time and a reasonable degree of financial risk. Investments are made in a medium/long-term time horizon with a suggested investment period of 5 to 7 years.

This investment profile can include up to 60% equity exposure with the remaining 40% invested in money markets and bonds. The issuer risk is limited to minimum rating levels equal to BBB- (S&P) or Baa3 (Moody's) for 80% of the issues, and the interest rate risk to bonds having a maximum duration of 7 years.

Most instruments used are liquid and quoted on a regulated market, so that availability of funds can be assured within short delays, with some specialised funds requiring longer liquidation periods.

Expected returns would outperform prevailing long term bond market conditions, with extra yield being provided by the equity component of the portfolio.

(***)

Dynamic

This is a form of management particularly suited to those who accept high volatility of returns in the short term and whose objective is the long term growth of capital. Investments are made in a long-term time horizon with a suggested investment period of 7 to 10 years.

This investment profile can include up to 100% equity exposure with the difference invested in money markets and bonds. The issuer risk is limited to minimum rating levels equal to BBB- (S&P) or Baa3 (Moody's) for 50% of the issues, and the interest rate risk to bonds having a maximum duration of 10 years.

Most instruments used are liquid and quoted on a regulated markets, so that availability of funds can be assured within short delays, with some specialised funds requiring longer liquidation periods.

Expected returns would be largely tied to the long term performance of the equity market with the non-equity component providing a smoothening effect on the short-term volatility.

(***)

Combo

Clients can also opt for a profile that is for almost 50% invested in alternative / hedge funds and the reminder almost entirely in bonds and money market instruments. This profile is less correlated to the markets and offers stability over the medium term.

(***)

*** In all Plus profiles, up to 20% of the portfolio may be invested in alternative / hedge funds.