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Investment funds

DEFINITION AND CHARACTERISTICS

An investment fund collects capital from the public in order to invest it in assets (equities, bonds, etc.) in accordance with the investment strategy defined when the fund was set up and the legal framework imposed by its country of domicile.

SICAV (Société d’Investissement à Capital Variable)

A SICAV is an open-ended collective investment scheme. It is a company whose objective is to pool the risks and benefits of an investment in transferable securities(shares, bonds, etc.), negotiable debt securities and other financial instruments authorised by the regulations and the SICAV’s articles of association. SICAVs have their own legal personality. The Company has a Board of Directors and shareholders of the SICAV have voting rights at the annual general meeting.

A SICAV is often split into sub-funds that pursue well-defined investment policies or objectives. The sub-funds may differ in terms of the currencies, geographical areas or business sectors in which they invest. Investors may switch sub-funds (usually for little cost).

ADVANTAGES

  • Investment funds reduce their risks by diversifying their investments across asset classes, regions and sectors.
  • Thanks to the great diversity of mutual funds available on the market, each investor can find a solution that meets the desired investment strategy.
  • Fund managers are experienced specialists who use their expertise to ensure the fund achieves the best possible performance.
  • A fund invests in markets that are difficult for private investors to access

DISADVANTAGES

  • Investment fund units may only be traded at certain times. The investor is forced to respect those times and is thus limited in his scope of action.
  • The investor does not have direct control over portfolio management, which may lead to differences with the investor’s expectations.
  • The management of an investmentfund is remunerated by a management fee, which is usually supplemented by an entry and exit fee.

 

Our ‘Best Of’ funds selection process

Thanks to a thorough and transparent selection process, our range of “best of” funds comprises the best funds based on simple and traceable criteria supplied by an independent information provider.

OUR SELECTION PROCESS "BEST OF" FUNDS

Qualitative analysis

STEP 01 - « ANALYST RATING »

For each category of fund, we apply Morningstar’s “analyst rating” classification as the first selection criteria. Only Gold-, Silver- or Bronze-medal funds are selected.

Quantitative analysis

STEP 02 - ABSOLUTE PERFORMANCE

Only funds that outperform or perform in line with the benchmark, both in the medium and long term, are selected.

 

STEP 03 - RISK ASSESSMENT

Funds with a risk level less than or in line with the benchmark are selected.

 

STEP 04 - VOLUME AND CATEGORY

Criteria of volume of assets under management, type of share classes (accumulation/distribution) and category of target investor are applied to the funds qualified in the preceding step.

 

STEP 05 - PERFORMANCE CONSISTENCY

The annual performance of selected funds is compared with their benchmark over the last five years.
Only the funds that have most often outperformed their benchmark are retained in the final selection.

 

This philosophy can be applied to all investment formulas.

A highly professional service

Our Private Banking advisors, either at the Bank's headquarters or at its branches, are available to provide guidance on the most appropriate solutions for your objectives and requirements.

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