Portfolio Components

We divide our portfolios structurally into three components, irrespective of whether the portfolio in question is globally diversified or geared towards specific asset classes (equities, bonds, etc.):

• Stable, long-term anchor point with focus on cash flows (interest and dividends) with a generally very low turnover rate
• Theme-based component, where tactical changes could have a not insignificant effect

Within equities: Emerging markets, small caps, special situations (such as «out of favour» stocks, event driven situations), technology, biotechnology, etc.

Within bonds: High yield, emerging markets debt, «fallen angels», etc.

• Risk management: cash/liquidity – tactical hedging