Portfolio Management

We ensure the anti-cyclical element at the investment category level in portfolio management for mixed mandates (i.e. all mandates that are not pure equity mandates) by setting ranges around your individually defined strategic equity ratio. We execute a re-buy during a crisis, a run on during recovery and a so-called rebalancing if the rise in the market causes the equity ratio to deviate too far from the strategic value. In this way, the share ratio is reduced anti-cyclically towards the strategic value by profit-taking. This enables us to carry out long-term, anti-cyclical management of the portfolio for you.

At the level of the individual stocks, rebalancing also takes place periodically. This involves selective profit-taking in order to bring the size of the positions back into the direction of the above-mentioned equilibrium weighting. Entire positions are sold if we conclude, based on fundamental factors, that we no longer wish to invest in a particular company in the future.

When building up a new portfolio, we proceed in a stepwise manner when you bring in some liquidity. It is important for us to diversify on the time dimension, as there is no optimal timing. This is to avoid that you get the worst possible timing for your entry before a market correction. We therefore spread the construction of your portfolio over a period of time, which can be several months, depending on market developments. The opportunity cost of hedging against a suboptimal entry point is less participation during the build-up in case of rising markets.

Our professional analysis has the primary task, in terms of risk management, of selecting top-quality stocks and bonds that promise long-term success rather than short-term spectacle. Once evaluated, our quality values are continuously monitored. We are convinced that the liquid markets in particular are very efficient. This means that prices reflect all available information. Therefore, research as a "forecast supplier" is enormously overestimated from our point of view. There are various asset managers with hundreds of analysts; their investment performance is nevertheless often very poor. Most analysts are also inherently pro-cyclical. The stock selection we practice, on the other hand, follows a very systematic selection process with no short-term forecasting character.

The management of the various investment categories is defined by the investment committee. The investment committee also decides on the equities admitted to our mandates and, on the bond side, on the eligible debtors. The implementation of the specific client portfolio is carried out by the relationship manager in close cooperation with the portfolio manager.