Anticipate any time the necessity of savings’ reorientation and select investment supports presenting the best perspectives in terms of return/risk.
Assets’ choice is very important as a criterion because it influences your portfolio’s performance. Return on investments can be inexistent due to inappropriate structures, or a bad anticipation in the end of the investment, tax fees…
II. Application field
Abacus continuously oversees the comprehensive range of financial products and keeps track of asset management companies dealing with all kinds of assets (real estate, private equity, stocks, alternative investments…).
It uses the internal method focused on matching the management strategy with the potential return as compared to other similar assets in the category and with the client's objectives.
III. Examples of parameters to take in account for the selection and the following up of investment supports by assets
– The level of independence of the management company and its capitalistic structure,
– Privilege long-term capitalistic incentive plans to short-term plans to avoid risks not willing by clients,
– To select high yield products,
– Management teams are sometimes unchanged without investors being informed,
– Portfolio’s structure and past performance must be analysed,
– The manager’s speech must be clear with real convictions: the knowledge of asset management products is a field where an intuitu persona is the most important factor,
– Past profitability and volatility are not the only criteria to take in account,
– A high tracking error is not always a bad point,
– The fund size must be adapted to its strategy, which goes against fund promoters’ interests,
– The management of the asset under management is very important because it can damage the portfolio if there are redemptions and/or reduce potential performance regarding notably the lack of liquidity of some positions.