Our investment process
A systematic and well informed approach as the base for performance and cost efficiency
At Valeur we regard the investment process as a top priority, and we manage it in a systematic and well informed manner, as we believe that it represents the way to effective and efficient investment decisions.
The objective of the investment process is not only to determine an efficient asset allocation, in terms of performance and costs. In fact, beside that, we aim at identifying investment opportunities that exhibit an asymmetric return distribution, skewed towards positive values, and able to mitigate (or completely avoid) potential losses.
Investment decisions are formulated and discussed by an Investment Committee who meets twice a month. The Committee performs a “top-down” analysis, hence starting the analysis from the global macroeconomic conditions and from the trends in which Valeur has already invested or intends to invest.
Subsequently, the Committee develops a “bottom-up” microeconomic analysis about markets and specific asset classes, with strong focus on fundamental valuation, momentum, timing and relative value analysis among asset classes or among investments within the same asset class.
Valeur differentiates the investment universe among two macro-categories:
- “Income” Assets – Assets aimed at pursuing stable returns and risk mitigation, allowing capital growing in a gradual and more conservative fashion. This target is achieved through allocation predominantly to fixed income assets, such as bonds and money market securities, but also allows alternative investments options such as, for example, liquid real estate with high liquidity and low volatility;
- “Growth” Assets – Assets aimed at enhancing capital over the time, based on diversifcation and decorrelation principles, and present a higher risk profile. In this bucket we find equities, commodities, alternative investments and other securities characterised by low correlation with traditional asset classes.
Valeur develops a wealth management process by combining “Income” and “Growth” assets, in order to achieve a result consistent with its Clients’ investment profile, in terms of risk and return objectives.
- Valeur formulates well informed investment decisions, on the back of its access to the research of a number of some of the major financial institutions. This translates into immediate availability of high quality data, analysis and investment ideas across all asset classes, and it represent the base for the formulation of our autonomous opinion, derived from an independent elaboration on selected sets of data. Such a principle is one of those at the roots of our Value creation.
At Valeur we believe performance and cost efficiency to be highly intertwined. Therefore, beside a systematic planning of the investment portfolios, Valeur places an endless focus on the level and transparency of costs related to the solutions implemented. In particular:
- Assets are selected purely on the base of our analysis, and the transparent and comprehensive pricing structure reflectes the full alignment of our interests with those of our Clients.
- Valeur developed an innovative business model, which leverages on the privileged relations with some of the major financial institutions, to achieve highly competitive terms and conditions for the investment solutions adopted, both for listed securities or ad-hoc structured solutions.
- Once identified the market where we want to invest, we focus on the financial instruments that offer the higheest diversification at the lowest possible cost. In this respect, only in few particular cases, Valeur utilizes investments funds to gain access to either specialized asset classes or to asset classes that are otherwise not accessible via direct investments (e.g. Insurance-linked securities).