Our Investment Policy

Bonds

• Target: Stability (in the sense of maintaining the capital value), income and liquidity.
• Bond investments are generally held in the client’s reference currency (in order to avoid any currency risk).
• Mainly direct investments, but also in some high yield bond funds.
• Very low trading activity (buy-and-hold strategy).
• Balanced proportion between government, supranational and corporate bonds.
• Only bonds with a credit rating from Standard & Poor‘s and/or Moody's.
• Quality at least AA.
• Immediate sale should the rating fall below BBB (non investment grade).
• Only very liquid bonds (issue size of a minimum of 250 million).
• Broad diversification to reduce the risk (and as a result relatively small positions).
• Maturity dates are staggered consistently, in order to provide regular liquidity.
• The proportion of bonds in a portfolio is kept very constant (minimal changes in the asset allocation).