Fixed Income Plus and Balanced
Finding the right balance of shares and bonds for our clients … …this is the chief objective of our investment strategies 2 & 3 (income + growth).
The Genève-Invest-Concept has a strong focus on value investing in promising quality shares and corporate bonds with the best risk/return ratio.
The Genève-Invest-Concept
Value investing + megatrend focus in promising quality shares | Corporate higher-yielding bonds with the best risk/return ratio |
|---|---|
Value investing approach (according to Munger) + megatrends: companies with long-term and overlapping transformation processes, which concern social and technological changes | Systematic focus on niche themes and special events |
Growing markets, such as technology, health, digitalization and online consumption | A continuous and foreseeable flow of income |
Firms need to be active in growing markets and have a technological advantage over their competitors | Legal protection for bondholders: focus on institutional and secured senior bonds |
Proven (audited) strong performance results | Predictability & transparent communication with the corporate management |
Searching for permanent competitive advantages and moat (protective wall)a | Less fluctuation in value than shares and benefits of effective diversification |
Focus on companies that achieve high margins and a high return on total capital | Fixed high-interest coupons & reduction of yield curve risk |
Anti-cyclical actions | Additional income by exploiting the yield curve effect |
The aim of our balanced strategy is to track equity market performance when markets are rising and limit losses by 30 to 50% when markets are falling. Main performance drivers are shares of high quality global companies. The bond component serves both as a buffer to cushion the downside risk during times of crisis and as another performance driver. This is achieved through targeted bond picking with a target interest yield of around 5% to 7%. A buffer is provided by short-dated bonds, which hardly correlate with falling stock markets. Additional price gains are achieved by investing in undervalued bonds and long-dated bonds. Thanks to its balanced investment strategy, our mixed fund has been able to achieve a total return of 160% since 2012, which corresponds to around 10.60% per year (data as of July 2021).
Investment strategy: Corporate bonds
In the fixed-income area, we focus on niche themes and special events that lead to higher interest rates or bond yields. These are, for example, initial issues, bonds with an issue volume of less than EUR 100 million or without a rating from the three major rating agencies. Special events are crises that offer increased potential for opportunities, such as the EU sovereign debt crisis, currently the severe recession caused by Corona, and so-called Fallen Angels.
Security elements for risk management:
1
Reduction of yield curve risk: maturities are on average less than four years.
1
Reduction of yield curve risk: maturities are on average less than four years.
2
Reduction of currency risk: the focus is on EUR securities, foreign currencies are only added as hard currencies of AAA countries.
2
Reduction of currency risk: the focus is on EUR securities, foreign currencies are only added as hard currencies of AAA countries.
3
Reduction of the default risk: in-house analyses with regular meetings with the management of the companies as well as a focus on secured senior bonds
3
Reduction of the default risk: in-house analyses with regular meetings with the management of the companies as well as a focus on secured senior bonds
Investment strategy: Equities
The equity investment strategy is based on the value investing approach, according to Munger. The focus is on high-quality global companies that have competitive advantages over their rivals. This moat (protective wall) allows companies to achieve high margins and thus a high return on total capital. The competitive advantages can be long-term patents or licenses, high exchange fees, or a strong brand. Interesting are companies that are active in growing markets and have a technological advantage over their competitors. We find these companies primarily in the fields of technology, health, digitalization and online consumption.
Proven invest performance and track record of our investment strategies 2 & 3
In the investment strategy 2 “Income Plus Yield Portfolio”, up to a maximum of 30% of the assets were invested in equities, equity funds and alternative investments and the remaining assets in fixed income corporate bonds or investment funds that solely invest in corporate bonds. Genève Invest has achieved an overall performance of 135.76% (7.41% p.a.).
Annualized performance for all client accounts of Genève Invest S.à.r.l. during the period of 2009 until 2020 (in Euro)*: 12-year investment performance from 1st January 2009 to 31st December 2020
In the investment strategy 3 “Balanced Portfolio”, up to a maximum of 70% of the assets were invested in equities, equity funds and alternative investments and the remaining assets in fixed income corporate bonds or investment funds which solely invest in corporate bonds. Genève Invest has achieved an overall performance 190.90% (9.31% p.a.).
*The indicated performance figures refer to the past and are not a reliable indicator of future performance results. The above-mentioned performance results are net results (after deduction of all fees but before tax) and refer to all client accounts of Genève Invest S.à.r.l., the parent company of Genève Invest (Europe) S.A. Genève Invest (Europe) S.A. is an independent company. However, it operates with the same expertise and methodology in the same investment universe. Important notice: All investment strategies involve the risk of asset reduction or loss of assets.
Finding the right balance of shares and bonds for our clients … …this is the chief objective of our investment strategies 2 & 3 (income + growth).
The Genève-Invest-Concept has a strong focus on value investing in promising quality shares and corporate bonds with the best risk/return ratio.
The Genève-Invest-Concept
Value investing + megatrend focus in promising quality shares | Corporate higher-yielding bonds with the best risk/return ratio |
|---|---|
Value investing approach (according to Munger) + megatrends: companies with long-term and overlapping transformation processes, which concern social and technological changes | Systematic focus on niche themes and special events |
Growing markets, such as technology, health, digitalization and online consumption | A continuous and foreseeable flow of income |
Firms need to be active in growing markets and have a technological advantage over their competitors | Legal protection for bondholders: focus on institutional and secured senior bonds |
Proven (audited) strong performance results | Predictability & transparent communication with the corporate management |
Searching for permanent competitive advantages and moat (protective wall)a | Less fluctuation in value than shares and benefits of effective diversification |
Focus on companies that achieve high margins and a high return on total capital | Fixed high-interest coupons & reduction of yield curve risk |
Anti-cyclical actions | Additional income by exploiting the yield curve effect |
The aim of our balanced strategy is to track equity market performance when markets are rising and limit losses by 30 to 50% when markets are falling. Main performance drivers are shares of high quality global companies. The bond component serves both as a buffer to cushion the downside risk during times of crisis and as another performance driver. This is achieved through targeted bond picking with a target interest yield of around 5% to 7%. A buffer is provided by short-dated bonds, which hardly correlate with falling stock markets. Additional price gains are achieved by investing in undervalued bonds and long-dated bonds. Thanks to its balanced investment strategy, our mixed fund has been able to achieve a total return of 160% since 2012, which corresponds to around 10.60% per year (data as of July 2021).
Investment strategy: Corporate bonds
In the fixed-income area, we focus on niche themes and special events that lead to higher interest rates or bond yields. These are, for example, initial issues, bonds with an issue volume of less than EUR 100 million or without a rating from the three major rating agencies. Special events are crises that offer increased potential for opportunities, such as the EU sovereign debt crisis, currently the severe recession caused by Corona, and so-called Fallen Angels.
Security elements for risk management:
1
Reduction of yield curve risk: maturities are on average less than four years.
1
Reduction of yield curve risk: maturities are on average less than four years.
2
Reduction of currency risk: the focus is on EUR securities, foreign currencies are only added as hard currencies of AAA countries.
2
Reduction of currency risk: the focus is on EUR securities, foreign currencies are only added as hard currencies of AAA countries.
3
Reduction of the default risk: in-house analyses with regular meetings with the management of the companies as well as a focus on secured senior bonds
3
Reduction of the default risk: in-house analyses with regular meetings with the management of the companies as well as a focus on secured senior bonds
Investment strategy: Equities
The equity investment strategy is based on the value investing approach, according to Munger. The focus is on high-quality global companies that have competitive advantages over their rivals. This moat (protective wall) allows companies to achieve high margins and thus a high return on total capital. The competitive advantages can be long-term patents or licenses, high exchange fees, or a strong brand. Interesting are companies that are active in growing markets and have a technological advantage over their competitors. We find these companies primarily in the fields of technology, health, digitalization and online consumption.
Proven invest performance and track record of our investment strategies 2 & 3
In the investment strategy 2 “Income Plus Yield Portfolio”, up to a maximum of 30% of the assets were invested in equities, equity funds and alternative investments and the remaining assets in fixed income corporate bonds or investment funds that solely invest in corporate bonds. Genève Invest has achieved an overall performance of 135.76% (7.41% p.a.).
Annualized performance for all client accounts of Genève Invest S.à.r.l. during the period of 2009 until 2020 (in Euro)*: 12-year investment performance from 1st January 2009 to 31st December 2020
In the investment strategy 3 “Balanced Portfolio”, up to a maximum of 70% of the assets were invested in equities, equity funds and alternative investments and the remaining assets in fixed income corporate bonds or investment funds which solely invest in corporate bonds. Genève Invest has achieved an overall performance 190.90% (9.31% p.a.).
*The indicated performance figures refer to the past and are not a reliable indicator of future performance results. The above-mentioned performance results are net results (after deduction of all fees but before tax) and refer to all client accounts of Genève Invest S.à.r.l., the parent company of Genève Invest (Europe) S.A. Genève Invest (Europe) S.A. is an independent company. However, it operates with the same expertise and methodology in the same investment universe. Please CLICK HERE for a detailed look at our Investment Performance Results (audited by BDO). Important notice: All investment strategies involve the risk of asset reduction or loss of assets.
