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Process

From the defintion of your risk profile to the selection of the investment products a robust process is put in place to ensure the best execution possible of your financial goals.
The process is based on three pillars.
Quality : we favour ‘quality’ investments as a means of protection and to prevent irreversible capital losses in an environment that has been destabilised by crises and excesses (instability having become the norm rather than the exception).
Diversification : our approach is designed to ensure a wide spread of asset classes in order to, on the one hand, exploit to the full the valuation spreads and regime changes that influence the asset classes and the investors’ attitude to risk and, on the other hand, to avoid an inappropriate concentration of risks.
Flexibility : our objective is to seek an absolute return on investment by achieving positive management performances over a complete market cycle. Our flexibility enables us to escape from the constraints of benchmarks.

Risk-return profile definition

We at Gonet & Cie SA adhere to a truly personalised approach, with no recourse to standardisation. Consequently, the way that we manage your assets will depend to a large extent upon your investor profile, which we define at the same time as your return expectations and your risk tolerance.

Defining your personal risk-return profile is a key step in determining the portfolio management strategy that will best reflect your goals.

We therefore devote particular care to understanding your needs. In discussion with you, we perform a complete analysis of your situation, including:

•    Net worth
•    Financial goals
•    Time frame
•    Reference currency
•    Income needs
•    Risk tolerance
•    Withdrawals or additional funds foreseen
•    Special restrictions

This information will play an important role, first in determining and applying your investment profile (see also Diagnostic & Solutions), and then in enabling us to target and capture the opportunities best suited to your profile, through the most appropriate strategic and tactical asset allocation.

Investment process

Once we have determined your personal risk-return profile, we put it into practice through the two followings steps:

The core-satellite approach

This step determines, within a given portfolio, the strategic core investments, which are the fundamental choices made based on the risk-return profile, and the satellite investments, selected to add value through careful targeting. The core comprises securities or funds that will perform, over time, in line with the general trend in the assets classes chosen. The satellite portion aims at outperforming the core, by concentrating on growth stocks or undervalued stocks, or alternative assets such as precious metals, structured products, real estate or hedge funds.
Selection of the stocks, bonds, precious metals or currencies in the portfolio is a very precise process that considers the following:

•    Macroeconomic conditions
•    The economic cycle
•    Fundamentals
•    Quantitative analysis
•    Technical analysis

Our methods are based on thorough analysis of the prevailing macroeconomic conditions, followed up and confirmed by technical analysis of the short-, medium- and long-term picture, to detect trends and cycles. By integrating all these data, we obtain precise indications of the highest potential returns.

Securities and funds are selected internally, based on a study of the quantitative and qualitative data. Our open architecture gives us access to the best products available on the market without any conflicts of interest. Similarly, we choose or assemble structured products by comparing different first-class issuers, to capture the best prices.

 

Strategic and tactical allocation

Strategic allocation

Studies prove that a portfolio’s performance is 80% dependent upon the strategic asset allocation. Gonet & Cie SA therefore places great importance on this step. The Strategy Committee meets at least once a month to assess the prevailing economic conditions. Our medium- and long-term quantitative and technical analyses also help us identify market cycles and trends.
Based on our conclusions, we adjust the strategic asset allocation grids – i.e. the way the assets are apportioned in line with our projections – and adapt the investment profiles acccordingly. Our conclusions are published once a month in our Monthly Review (see Financial Research).

Tactical allocation

The goal of the tactical allocation is to capture the opportunities arising on the financial markets. The Tactical Investment Committee meets as often as business requires, but at least once a week. The depth and range of our information sources – a benefit of our open architecture – guarantees a very comprehensive view of the investment possibilities.
Our ability to react fast is aided by a simple organisational structure that avoids multiple committees and lines of authority. This means that we can seize opportunities as they emerge and take quick decisions to protect our clients’ assets.