The investment process is a continuous, disciplined and specially designed dynamic process. The restructuring of the portfolios (portfolio rebalancing) is carried out at regular intervals so that it is compatible with the client's investment profile, the limitations he faces (measurable in terms of risk) and the current market conditions. The restructuring is carried out with strict criteria making the best use of the conclusions obtained from the combination of Macroeconomic and Microeconomic Analysis. This process includes:
Strategic Asset Allocation Decision
It is applied in a medium- to long term investment horizon and utilizes the conclusions at the level of two main approaches:
- Macroeconomic evaluation (top down): The top-down analysis produces the dynamic Asset Allocation based on quantitative (calculation of expected return of different groups of investors and determination of their size in relation to the market) and qualitative data (Macroeconomic data, economic cycle analysis, monetary policy, political conditions, fundamentals, etc.)
- Microeconomic evaluation (bottom up): The bottom-up analysis produces the selection of specific securities (indicatively in the bond market - yield curve, credit spreads, solvency & liquidity and characteristics of bonds) and indicatively in the stock market (Profitability ratios, sales, business plan and stock valuation), combining the application of specific filtering and the analysis results carried out on the evaluations of selected Investment Houses (Standard & Poor's, Moody’s, Fitch).
Large amount of information is thoroughly analyzed and graded, based on different parameters. The result of this process results in the formulation of investment proposals which are in turn evaluated by the Investment Committee. The combination of these proposals determines the strategic allocation of investments for each level of risk and the final configuration of the portfolio, according to the investment profile of the investor.
Tactical Asset Allocation Decision
With a short and regular duration, it aims to take advantage of the opportunity presented by the deviation of the asset's price from its intrinsic value, or from other elements that embody the same level of risk.
