An optimal investment strategy constitutes one of the main investment performance vectors for long-term clients.

The Investment Committee, chaired by the head of Asset Management, is in charge of the bank’s investment policy and, on a monthly basis, sets the tactical asset allocation. This allocation defines the margins within which managers can vary their weightings, as defined by the strategic allocation. This allocation indicates, depending on the client’s risk-tolerance profile, the recommended exposure to the various geographical regions and asset classes.

The approach employed by the Investment Committee to define the investment strategy is both top-down and bottom-up. The top-down approach begins by analysing the world’s macroeconomy; this informs decisions on the weightings in the different asset classes (such as equities, bonds, hedge funds, precious metals and private equity) and in the geographical regions, according to their expected performances and specific, individual risks. The bottom-up approach examines trends from a microeconomic perspective. This performs two functions: firstly, it allows the components within each asset class which are capable of above-average performances to be identified; secondly, it can act as a check and balance on the results of the top-down approach.

In bringing the results of these two approaches together, UBP’s monthly investment strategy can be established and managers then apply it according to their clients’ risk tolerance. Similarly, they continuously adapt the strategy according to their own expertise, developments on the markets and the essential aim, which is to preserve capital whilst maximising returns.

This process thus allows us to anticipate the major economic and political trends and to predict the various market fluctuations.