Investment approach

Investment philosophy

Our philosophy is to protect and grow your assets by taking measured risks and making optimal use of all financial instruments, combining traditional and alternative investments.

We focus on the long-term growth of capital, based on the proven principles of carefully selecting and allocating financial instruments, using a balanced mix of safety, risk and return.

Our strategy is governed by constant diversification by sector and geographic region in various asset classes, combining international securities, fixed-rate and convertible bonds, traditional and alternative funds invested in both developed and emerging countries.

Our independence enables us to offer targeted and innovative tailor-made portfolio solutions to our investors, focusing on an “open architecture” approach that allows us the freedom of independent advice in the choice of financial products available in the market.

Assets allocation

The asset allocation decision is the most critical aspect of our investment process. It is the primary determinant of a portfolio performance and typically accounts for over 80% of investment returns.

Structuring a balanced portfolio is a matter of combining capital gains and income potential with appropriate limitation of risk through balancing investments between equities and bonds in various currencies. It may also involve the selection of mutual funds, Structured Products, Hedge Funds and Property Fund Products.

Through strategic and tactical allocation of assets and the mixing of asset classes in accordance with global trends, as well as a continuous review of the risk profile inherent in all our investment positions, we help clients achieve their investment objectives.

The allocation to different asset categories is based on the individual risk profile of the investor and our assessment of the prevailing and anticipated economic trends. By mixing asset classes that have little correlation we are able to reduce portfolio volatility, thereby achieving more risk efficient returns for our investors.

Process

Advantages of investment in funds

Advantages

Advantages of complementing a portfolio with traditional and alternative investment funds.

  • Access to highly skilled specialist fund managers
  • Diversification across a broad variety of strategies and investment styles
  • Range of funds offering a diversification of investment styles suited to varying investors needs
  • Low correlation of certain alternative investment funds to equity markets
  • Downside protection in negative markets and reduction in volatility
  • Increase of portfolio efficiency
  • Absolute performance objective vs relative performance

Traditional Funds

Traditional funds, with a performance objective relative to a benchmark, may be invested in equities, bonds, money market funds or diversified instruments.

Hedge Funds

 

Alternative investments in Hedge Funds cover a number of investment strategies based on the use of a variety of financial instruments such as currencies, options, futures and commodities.

Fund managers can make use of leverage, short selling and market timing techniques.

 

Main hedge funds’ strategies

Long/Short Equity
Take long positions in securities for which an increase in value is anticipated, and short positions in securities for which impairment is anticipated

Global Macro
Based on macroeconomic forecasts investing in all types of markets and instruments (i.e. equities, bonds, currencies, commodities or derivatives)

Event Driven
Investing in opportunities generated by events occurring in the course of companies’ development: spin-offs, acquisitions, or corporate distress (distressed securities)

Relative value
Investing in two similar assets with a long position in one asset and a short position in the other in order to benefit from price differences between the two assets

CTA
Taking advantage of fluctuations in market prices of bonds, equities, foreign exchange and commodities by means of systematic trading models

Monitor List

Bank Third Party Funds selected and recommended by Hyposwiss

As independent specialists in asset allocation, Hyposwiss has developed its own Monitor List of selected and recommended funds and has a solid track record of working closely with professional managers of the best traditional and alternative funds.

Process of inclusion on our Monitor List for managed assets

The Hyposwiss team starts by analysing investment opportunities, searching and filtering the investment universe.
Subsequently, we research selected managers and strategies, based on a quantitative analysis of historic performance and a qualitative assessment of selected strategies and the ability of managers to perform in the future.

The role of the Hyposwiss team is to monitor and control investment risks, the managers, the strategies, the environment and the funds.