The Company firmly believes in the vast amount of academic research which concludes to the fact that ‘Index Asset Management’ is the most appropriate approach to maximize returns whilst reducing risks and volatility through time.
Also known as ‘Index Investing’ or ‘Passive Investing’ this strategy involves tracking the performance of a specific market index. The goal is to match (not surpass) the returns of this market index. This is achieved by investing in a diversified portfolio of selected securities which are representative of the market index. The advantage lies in the reduction of overall fees and expenses whilst providing the broadest exposure to the market index.
This also quite naturally removes the risk which ‘Active Asset Management’ carries through time, and which lies in the issue that individual and narrow securities’ selection will never consistently beat a market index over a prolonged period but will rather result in a collection of uncorrelated ‘better than the market’ or ‘worse than the market’ years.
Discretionary Asset Management
LOGIVER runs 3 Discretionary ‘Index Asset Management’ strategies which it believes allow to match the needs of every investor:
The portfolio is constructed at the start of the mandate and along the lines of the strategic allocation which is anticipated to produce the best risk/reward ratio to the client at onset. The portfolio is then rebalanced (i.e., sales and purchases of securities are carried out through time) in order to always stick to the natural evolution of the original plan of action and in line with the Investment Policy of the Company
The portfolio is constructed at the start of the mandate based on both:
The individual weights allocated to asset classes vary around the asset distribution defined in the original asset allocation. This variation is the result of the client’s possible existing positions and most importantly of LOGIVER’s current anticipation of future market developments. The portfolio is then rebalanced through time similarly to the Fixed Index Strategy but also taking into consideration the changes in the tactical asset allocation (if any) the Company sees fit to implement in line with its Investment Policy.
The portfolio is constructed at the start of the mandate with both listed and unlisted (‘alternative’) assets. The strategy used for listed assets is the ‘Flexible Indes Strategy’. The unlisted assets ideally remain ujntouched however, uess market conditions are felt to absolutely require acting.