INVESTMENT PROCESS

Key features

Security and Transparency Luxembourg

AAA rating; recognized financial stability.

Governed by UCITS regulations which entail prestige and success, and are a synonym of transparency.

Diversification

A relevant aspect, derived from being a fund of funds.

Its impact is to generate competitive returns with less risk than those of main financial market indices.

Flexibility

Using three different risk profiles, clients can select the fund according to their risk profiles and objectives.

The funds themselves are rebalanced through active management.

Expertise

Advised by our dedicated Investment Committee composed of a team of specialists making the most out of their 15 year average experience and a stellar track record.

Investment philosophy

Our investment philosophy seeks to generate alpha, combining the active management of our portfolios in a strategic and tactical manner, coupled with the selection of the best managers for each asset class, sector and geographical region, to build the portfolio structure for the medium to long term.

Using quantitative and qualitative analysis of the various types of assets available in the market, we conduct a selection of funds and EFTs to build the portfolios according to the investment objectives.

We permanently control the level of risk of each portfolio according to UCITS regulations; analyzing the results, comparing them with their respective benchmarks and controlling the risk of each asset at an individual level.

Investment objectives Strategic allocation
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Portfolio Construction Fund Selection
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Risk Monitoring and Control

Asset selection process

Through an exhaustive selection process, where both quantitative and qualitative factors are considered, a search for the best managers for each asset class, sector and geographical region is carried out to build the structure of the portfolio for the medium to long term, always in the context of strict risk control which aims to avoid exposing investors to unnecessary risks. The factors analyzed are the following:

Quantitative Factors

  • Long and short term returns
  • Risk adjusted returns
  • Risk measures / Correlations
  • Peer comparisons
  • Benchmark comparisons
  • Fees / Access to institutional class
  • Size / Liquidity

Qualitative Factors

  • Manager / Management Team
  • Access to management team
  • Ratings
  • Strategy / Investment Process
  • Investment Style
  • Regulations (UCITS)

Using powerful and sophisticated analysis tools we can identify those assets that are best in class, as well as the combination of these assets that deliver the optimal risk adjusted return for the strategy.

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Example:

We managed to identify the optimal combination of 2 assets regarding risk and return (red dot).

In this way we managed to capture a return similar to that of the market, but with significantly lower risk.

This is repeatedly done for all asset classes, looking for optimal combinations.

With a clearly marked risk approach which characterizes our management style, we consider correlations and risk measures like sharpe, beta and treynor, among others.

By conducting these analyses we determine the asset allocation which best contributes to the risk/return ratio of the portfolio.

Correlation-Matrix
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In addition to quantitative aspects, qualitative aspects are also analyzed, including a detailed analysis of the managers, their track records, rankings, as well as their processes and investment teams.

The permanent and direct contact with the management teams enables us to monitor de behavior of each fund in the portfolio continuously and extensively.

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Asset Managers

Our investment philosophy combines active management with selecting the best fund managers for each asset type, sector and geographical region.

We have access to key Asset Managers, such as:

pimco
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jpmorgan_logo
vanguard-2
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natixis_logo
jupiter_logo_2021
pictet
mfs_logo
janus_henderson_logo
axa
ishares
alliaz_logo
ninety_one_logo
vontobel_logo
franklin_templeton_logo
lord_abbett_logo
nn_investment_logo
dws_logo
morgan_stanley_logo
nuveen_logo
gam_logo
blackrock_logo
la_francaise_logo
robeco_logo
wellington_management_logo
muzinich_and_co_logo