Investment process
Asset allocation is probably the most important decision investord make, as it forces them to take a long-term, strategic view of the world. At UBP, we follow a rigorous, yet dynamic, investment process, based on high-conviction, active management and an opportunistic asset allocation.
The Investment Committee works closely with our economists and analysts and is responsible for defining UBP’s long-term, strategic asset allocation: it determines the parameters within which managers can adjust their weightings and indicates, depending on the client’s risk-tolerance profile, the recommended exposure to the various geographical regions and asset classes, such as bonds, equities and hedge funds.
Each month, it also sets shorter-term, tactical, asset-allocation recommendations, leaving managers latitude to capture opportunities.
Portfolio construction
The approach employed by the Investment Committee when setting the investment strategy is both top-down and bottom-up, i.e. it examines the world’s macroeconomic and microeconomic trends. In bringing the results of these two approaches together, it establishes a monthly investment strategy, and its strategic portfolio benchmarks are modified accordingly. Managers then apply the strategy, according to their clients’ risk tolerance and they may adapt it in relation to their own expertise and market developments. This flexible and opportunistic asset-allocation philosophy enables us to keep sight of our aim: preserve capital while maximising returns.
Risk management
Careful risk management lies at the heart of our investment process. Our risk-management approach is an integrated and continuous process. It pursues two crucial aims: maximising clients’ assets and seizing opportunities, as well as balancing capital preservation and capital optimisation. It is also tasked with ensuring that UBP meets regulatory requirements at all times.
