Our philosophy
When it comes to investments, it is not possible to make good recommendations without consulting effective and rigorous research. Therefore, the Investment Research & Advisory (IR&A) department is organised in such a way that it can adapt to the different demands made of it, whether from private banking or institutional asset management or even specific mandates. Whilst fundamental analysis is at the heart of the selection process for an investment theme or product, a close reading of the markets (such as fluctuations, relative forces and technical analysis) is the indispensable ingredient in the finance world’s decision-making process.
The aim of the research & advisory department is, first and foremost, to identify opportunities in the market. This mission sees it marching in step with the investment strategy, as defined by the Bank’s Investment Committee. Moreover, the department is constantly on the lookout for new ideas to stimulate account and fund management, the ideas applying to either specific securities or wider themes.
Our organisation
Equities
The financial analysts who deal with this class of asset operate in one or several sectors, depending on the MSCI-defined sector title. Each analyst is the leading specialist in their sector, and the recommendations they make aim to outperform the corresponding MSCI index over a time horizon of 12 to 18 months.
To this end, UBP has developed a specific three-stage model which relies upon changes in pace in company value creation:
- ‘Scoring’. The scoring model was developed by Quantitative Services here at UBP and is used to screen the investment universe;
- Narrowing down. Analysts then narrow down the list of potential candidates on the basis of their prospects, making particular use of the CFROI (Cash Flow Return on Investment) method through the HOLT system;
- Selection and monitoring. Lastly, the selection and systematic and stringent monitoring of stocks which offer strong upside potential. As well as individual recommendations, analysts manage structured products, based around a specific theme peculiar to their specific sector (such as biotechnology, energy etc.). Moreover, a structured product which covers all asset classes and which is based upon the strongest convictions of each analyst is managed collectively.
In addition to this, a report is published each month covering the ten MSCI sectors.
Bonds
Advisors and analysts/managers who deal in the bond world specialise in one of four distinct segments: ‘High Grade’, ‘Corporate’, ‘High Yield’ and ‘Emerging Markets’. This systematic and essential approach to these segments is fed by a thorough knowledge of the markets and its different classes of risk. In applying this approach, the teams seek above all to detect market anomalies or to expose opportunities for investment.
Advisors, for their part, closely monitor the positions held by clients, submit their specific recommendations both on themes and specific issuers, identify possible ‘switches’, and publish the various bond lists. Each month, all the experts take part in writing up a detailed research document about bonds.
Bonds
Advisors and analysts/managers who deal in the bond world specialise in one of four distinct segments: ‘High Grade’, ‘Corporate’, ‘High Yield’ and ‘Emerging Markets’. This systematic and essential approach to these segments is fed by a thorough knowledge of the markets and its different classes of risk. In applying this approach, the teams seek above all to detect market anomalies or to expose opportunities for investment.
Advisors, for their part, closely monitor the positions held by clients, submit their specific recommendations both on themes and specific issuers, identify possible ‘switches’, and publish the various bond lists. Each month, all the experts take part in writing up a detailed research document about bonds.
Commodities
Commodities are divided into four specific segments: ‘Soft Commodities’, ‘Precious Metals’, ‘Base Metals’ and ‘Energy’. Analysts identify growth themes. Working alongside the structured product teams, they make their observations by specific recommendations and seek out the best investment vehicles. They then publish their considered opinions in a monthly report.
Technical Analysis
Technical Analysis
Each week in parallel to the fundamental approach, a committee oversees and takes part in the technical analysis of around eighteen indices every week. The universe they look at covers the most important stock market, currency and commodity indices. This group’s aim is to detect the medium- to long-term trend changes. Each member of the Technical Analysis Committee presents their findings in their specialism. These conclusions are a complementary tool to the fundamental market approach.
Foreign exchange market
Foreign exchange market
The foreign exchange market is covered by the specialist Foreign Exchange Overlays team, which writes a monthly report giving information and research on the currency market. This document shows calculations for the expected developments of the G10 currencies (as well as certain emerging-market currencies) over three and twelve months. Each exchange rate is then dealt with in more detail by combining fundamental analysis, a technical approach, measurements of the market position and fluctuations and risk-aversion and any other appropriate indicators. Each month, one page of the report is dedicated to a relevant theme, linked to the currency complex, which is likely to be of interest to investors.
Furthermore, the Foreign Exchange Advisory Desk produces a daily commentary on the market as well as technical analyses of the main currencies.