Asset management

Wealth management today, whether for private or institutional investors, requires some degree of diversification of the investment risks. Amongst specialist asset management tools, tactical allocation performs the essential task of adjusting global equity risk.

 

 
the delicate
equilibrium
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diversification
 

Bonds

The bond management concepts developed by Landolt & Cie SA emphasise capital preservation.

Landolt & Cie SA uses active management of the average term-to-maturity of the cash flows of the positions to manage the risk (in absolute terms or against a benchmark) and the investment opportunities. After optimising the security offered by the investments, we concentrate on managing the duration as the key factor for added value and performance.

 

Thus, performance is generated through active decisions to reduce or extend the average term-to-maturity of the positions, which are composed exclusively of bonds issued by top-quality borrowers. In the international portion of the portfolio, this is also obtained through active management of geographic and currency allocation.

 

Equities

Amongst specialist asset management tools, tactical allocation performs the essential task of adjusting global equity risk.

The bank has developed two concepts, one enabling the investor to benefit from our proven expertise in controlling allocation risk; the other offering our long-established and proven expertise in stock picking.

 

The first concept responds to the need for careful tuning of the tactical allocation within an equity portfolio. It addresses the investor who does not wish to be exposed to stock-specific risk in the management of his equity investments. The risks and the global exposure are therefore usually managed by means of index products, exchange-traded funds (ETFs) or investment funds, depending upon the market outlook. By contrast, the second concept is devoted entirely to active risk taking. It is tailored to investors who are primarily seeking exposure to stock-specific risk. In this case, Landolt & Cie SA aims to optimise the portfolio’s returns by actively managing the exposures in the light of the outlook for the individual stocks, regions or sectors.

 

Both these concepts assure you of transparency, speed of execution and ease of implementation, whilst our methodology and the structure of your portfolios are designed to guarantee effective risk diversification.

Currencies

As a result, most portfolios are composed of both domestic and foreign assets, meaning that a portion of the portfolio will be in currencies other than the investor’s reference currency.

 

This situation constitutes an additional risk as the foreign exposure adds a second layer of volatility, arising solely from fluctuations in exchange rates. Yet most investors still fail to perceive exchange rates as a separate risk category. Instead, they continue to mistakenly believe that these fluctuations will even out over time.

 

Our specific concept for managing currency risk is directly accessible through most of the management mandates we offer you. This is a unique and innovative way of systematically reducing the volatility of your international exposure. Applied to any investment strategy, it ensures more efficient management of the total risk budget. It also helps to optimise performance.

Choice

It hardly needs saying that Landolt & Cie SA also offers expertise in other management concepts.

These range from products tracking bond or equity indices (European, global, small caps, etc.) and alternative investments to active management of geographic diversification and private equity investments.

 

Furthermore, we constantly follow the performance of a large universe of investment funds and select for our clients the products with the greatest upside potential, so as to optimise the portfolio’s returns.

 

Several investment approaches involve the use of mutual funds. The vehicle we choose must satisfy stringent selection criteria in terms of liquidity and the clarity of the portfolio manager’s style.

 

Depending on the portfolio or the constraints you impose, we may use either index mutual funds or actively managed funds to execute our investment policy. As we benefit from total independence in the selection of investment funds, our clients’ portfolios will frequently contain a mix of different funds.

Management ethics

In ethical wealth management, the traditional asset management process, which is based solely on financial parameters, is interpreted in the light of the client’s personal investment restrictions.

For this very specific type of wealth management, we must be able to incorporate certain fundamental qualitative factors into the traditional management equation.

 

Restrictions may concern asset classes, management techniques or investment vehicles that must be excluded from the asset management process and the investment strategy. Accordingly, the portfolio manager must apply all his expertise to devising a more complex strategy for reaching the performance targets you set. To achieve this, whilst also taking account of your personal quality criteria, we rely upon the pioneering work of one of our business associates: for 20 years now, Oekom research has been supplying us with the key independent data we need to combine socially responsible investment with high returns.

 

The ethical concepts that we have devised are available to you in the form of a management mandate.