Skip to main content

Portfolio management, investment style

Client relationship and portfolio managers jointly make up the Investment Committee.

This committee continuously analyses the current market condition, as well as the risks and prospects of success for the asset classes and investment products. At regular meetings, it decides on the long-term strategic distribution of assets as well as on short to medium-term tactical allocations. The decisions arrived at by majority decision are well-founded, comprehensively documented and recorded. The characteristics and opportunities offered by the individual investment categories are always taken into consideration when those decisions are made, as is the interaction between the different categories within the portfolio as a whole.

Once the Investment Committee has come to a decision, the portfolio managers implement these in the individual client portfolios. In doing so, they pay particular attention to the individual clients' risk profiles and take any preferences and restrictions that clients have agreed with SIM into consideration.

In the case of bonds, careful attention is paid on the one hand to an even staggering of the final maturities across several years, in order to ensure that at no time the entire bond allocation comes up for renewal simultaneously. This way, changes in interest rates are evened out. On the other hand, bond holdings are spread across a range of credit ratings according to defined criteria in order to achieve the best possible balance between risk and return.

In respect of shares, we pursue a value-oriented investment approach, whereby fundamental valuation criteria such as, for example, the ratios of price to earnings, to cash flow, to turnover and to book value should be as low as possible but the dividend yield as high as possible. Long term, this approach is far superior to growth and momentum oriented styles. Famous investors such as Benjamin Graham and Warren Buffett have grown wealthy by this approach to investment. It relies rigorously on quantifiable economic factors in order to identify undervalued companies. It stays clear of the volatile moods of markets and media, as well as erratic growth and profit forecasts by analysts. One of the most distinguishing features of value-style investing is that these stocks are often out of fashion at the time of purchase.

Furthermore, depending upon market conditions, precious metals or alternative investments are employed. Liquidity on the one hand acts as a reserve in order to take advantage of opportunities as they present themselves. On the other, it serves as a buffer against fluctuation in value of other asset classes and constitutes an important component of a well-diversified portfolio.


European equities

European equities -
European Stock Portfolio

A high weighting of the home market, in financial jargon called a «home bias», produces the best results in the long-term. For clients whose earnings and cost of living are mainly derived in Euros, this means that we invest the main part of their equities allocation in European shares.

Since 2004, we have employed for this purpose a value-oriented investment approach, known as value investing (please also refer to the section on portfolio management and investment style). It is founded on long-term experience and investment results, as well as on scientific studies.

Following the principles of this investment style, you will find a selection of European shares in the European Stock Portfolio (ESP), shares that are part of the Dow Jones Stoxx 600 Index. We invest in companies that are overlooked by the market and thus can be bought at attractive terms.

 

 

 

European Stock Portfolio
per 30. June 2017

    ESP**
 
  MSCI Europe Index*
 
Performance since 1. January 2017   12.55%   6.61%
Rendite since Lancierung 1. January 2004   206.26%   132.89%
Annualised return since 1. January 2004   8.65%   6.46%
Annualised Volatility***   11.10%   10.86%
Performance 2016    0.47%    2.61%
Performance 2015   6.09%   8.19%
Performance 2014   7.29%   6.92%
Performance 2013   14.51%   19.86%
Performance 2012   23.50%   16.98%
Performance 2011   -12.37%   -8.27%
Performance 2010   14.00%   11.38%
Performance 2009   42.85%   32.24%
Performance 2008   -42.95%   -43.68%
Performance 2007   -4.16%   2.98%
Performance 2006   23.77%   19.97%
Performance 2005   33.77%   25.35%
Performance 2004   16.07%   12.04%
net dividends reinvested
net of transaction charges of 0.5% before management fees
annualised for current year
Past performance is not a guide to current or future performance.

Swiss equities

Swiss equities –
Swiss Stock Portfolio

We are of the firm opinion that investors achieve the best long-term results if they stay close to their domestic market. Which means: the major part of the equity allocation in clients' portfolios, whose reference currency is the Swiss Franc, should be in Swiss equities.

Since 2012, we have employed for this purpose a value-oriented investment approach, known as value investing (please also refer to the section on portfolio management and investment style). It is based on long-term experience and investment results, as well as on scientific studies.

Following the principles of this investment style, you will find a selection of equities that promise to be profitable in the Swiss Stock Portfolio (SSP), shares that are included in the Swiss Performance Index. We invest in companies that are overlooked by the market and thus are available at an attractive price.

 

 

 

Swiss Stock Portfolio
per 31. May 2017

    SSP**
 
  Swiss Performance
Index*
 
Performance since 1. January 2017   18.29%   14.31%
Rendite since Lancierung 1. January 2012   190.83%   91.81%
Annualised return since 1. January 2012   21.77%   12.77%
Annualised volatility***   8.22%   8.38%
Performance 2016   16.69%   -1.41%
Performance 2015   15.60%   2.68%
Performance 2014   10.32%   13.00%
Performance 2013   38.94%   24.60%
Performance 2012   18.91%   17.72%
net dividends reinvested
net of transaction charges of 0.5% before management fees
annualised for current year
Past performance is not a guide to current or future performance.

Investment funds

Investment funds

The saying goes «Stick with what you know», a principle which also applies to the investment business. We call on investment funds or ETFs when investing in remote regions, such as, for example, shares in developing countries, or when only a small portfolio allocation is to be invested highly diversified. In selecting suitable fund managers, we employ the same strict quality criteria as for direct investments. Furthermore, as always, we pay particular attention to costs in these cases.