With a discretionary mandate you delegate your investment decisions to the bank and benefit from prudent management of your financial assets without having to invest any time. The selected investment strategy is consistently implemented in line with your risk profile.
Your benefits at a glance
- Professional and active asset management that does
not take up your time
- Consistent implementation of your defined investment strategy
- Investment decisions are made in a rational and fact-based manner
- Optimised investment risk thanks to broad diversification
- Regular review of the investment objectives and investment solution
- Regular detailed reporting on the performance of your portfolio
Professional and customised management of your assets
The interplay between the various financial market protagonists is becoming increasingly complex and hard to understand. The decisions that need to be taken for the longer term are becoming increasingly challenging. It is also often hard to find the time to follow trends closely enough to be able to take well founded decisions.
The discretionary mandate ensures that your assets are managed actively and professionally in line with your chosen investment strategy. Based on the investment profile you agree with your relationship manager, you can chose from five strategies.
In addition to the five standard strategies for structuring your discretionary mandate, other options are also available to you:
Consistent implementation of your investment strategy
With the discretionary mandate, you can arrange for your assets to be professionally managed by our experts. If you’re looking to build up your assets over the long term and would prefer to leave investment decisions to the specialists, then you’re in the right place. The first thing to do is to work together with your relationship manager to decide on the investment strategy that suits you best. This involves assessing your risk capacity and risk appetite and defining your investment goals. The investment universe consists largely of in-house investment funds, ensuring a broad diversification of investments. You will constantly be kept up to date with how your portfolio is performing by means of regular in-depth reports on performance and the investments made. With the discretionary mandate, you can be sure that your chosen investment strategy will be implemented consistently – with no effort on your part.
Management in line with Bank CIC’s pension fund
With the Replica Pension Foundation strategy, your money is managed according to the same strategy as the money in Bank CIC’s pension fund. The strategy is suitable for investors who wish to have their assets managed with a moderate degree of security and are prepared to accept increased price fluctuations resulting from the addition of equity investments. The main differences between a balanced strategy and the Replica Pension Foundation strategy concern the greater share of investments denominated in Swiss francs and the fact that investments are also made indirectly in Swiss real estate.
The strategy for high returns over the long term
With the discretionary mandate Dividend Focus, your money is invested in individual securities in the Swiss or European equity markets in the respective reference currency (CHF/EUR). There is therefore no foreign currency risk. The focus is on large cap stocks paying high, steady or rapidly growing dividends. Investments can also be made in top-quality small and mid cap companies. The strategy is suitable for investors who are prepared to accept high price fluctuations to achieve high returns (capital gains and dividends) in the long term. As it is solely an equity mandate, with at least 90% being invested on average and thus subject to high price fluctuations, a long-term investment horizon is recommended. This strategy is not suitable for investors with a shorter investment horizon.
Benefit in phases when the market is moving sideways
This strategy is suitable for investors with a long investment horizon who want to have their assets managed with a very low degree of security and are thus prepared to accept large price fluctuations as a result of selling equity options. The focus is on put options on companies from Switzerland and elsewhere in Europe. As the options sold result in shares being delivered in the event of exercise, the risk is that of an equity strategy. There are no additional calls for funds as a result of delivery obligations. Because high market volatility results in high premiums for put options, this strategy is particularly interesting in phases when the market is moving sideways.
The alternative to holding large quantities of cash
The discretionary mandate Cash Plus provides you with an alternative to holding large quantities of cash. It consists of a combined portfolio of three asset classes: liquidity, bonds (solely individual securities with a maximum term three years) and investment funds that specialise in liquid private lending for trade finance. Fluctuations for this form of investment are generally minor and the performance does not correlate with that of traditional markets. The discretionary mandate Cash Plus provides a large degree of flexibility when building a portfolio. This investment strategy is recommended if you want to hold a considerable part of your assets in liquidity and do not intend to invest your money in the next 24 months.
The alternative to fixed income investments
The discretionary mandate Private Debt Basic provides an interesting addition to fixed income investments, especially in the current low interest rate environment. It involves experts investing in investment funds that specialise in liquid private lending for trade finance. Every investment fund in turn invests its capital in a large number of loans in suitable economic sectors and regions, taking into account the optimum risk/return ratio. This investment strategy is recommended for investors who are aware of the illiquidity of trade finance strategies and wish to diversify their sources of income to include the private markets. The product is designed for a multi-year investment horizon.
Arrange for your pension fund money to be managed by experts
FIT stands for “flexible, individual and transparent”. This strategy is suitable for companies and self-employed people who would like to invest their occupational pension assets securely through a collective foundation. Bank CIC manages retirement savings in line with Occupational Pension Ordinance (OPO 2) guidelines and in accordance with the investment strategy agreed with the collective foundation partner. Depending on the collective foundation partner, it may be possible to define an individual investment strategy within an individual OPO 2 pool in addition to the standard OPO 2 strategies. The assets are invested in individual securities, investment funds, diversified investment vehicles and structured products. Depending on the choice of collective foundation partner, you can benefit from individual investment opportunities per employee for the supplementary insurance part.
The discretionary mandate Unique is specifically geared towards pension foundations and funds that would like to invest the retirement savings in compliance with the legal regulations under OPO 2. Very wealthy private investors can also arrange for an individual portfolio to be constructed in consultation with their relationship manager. The assets are mainly managed using direct investments. The investments are made in individual securities, investment funds, diversified investment vehicles, structured products, hedge funds, private equity or derivative instruments. Forward exchange transactions may also be used to hedge against currency risks.
Our experts would be happy to advise you in person.
Are you aware of cleverinvest?
cleverinvest is Bank CIC’s intelligent solution for continuously building up your assets, even with small amounts. cleverinvest enables you to invest in themes of your choosing from as little as CHF 1,000. Further information can be found here.