Investment Process
In La Côte Invest we design 2 foundational portfolios for each reference currency (USD, EUR, CHF). Each foundational portfolio has its own investment process:
The Fixed Income Portfolio
The Fixed Income Portfolio primarily comprises cash and bonds: this component aims to provide a stable and secure cash flow, prioritizing capital preservation and steady returns.
The EQUITY Portfolio
The Equity Portfolio is typically composed of equities: this segment targets higher returns despite increased market fluctuations. This portfolio may also include alternative strategies, private equity and commodities.
The portion of Fixed Income Portfolio and Equity Portfolio depends on each individual client’s risk tolerance and appetite.
The investment process varies significantly between the 2 foundational Portfolios: Fixed Income and Equitey :
The portion of Income portfolio and Growth Portfolio depends on each individual client’s risk tolerance and appetite.
The investment process varies significantly between the 2 foundational Portfolios: Income and Growth:
The investment process varies significantly between the 2 foundational Portfolios: Income and Growth:
Understanding LCI’s equity investment process requires distinguishing between strategy and tactic. Strategic Asset Allocation (SAA) involves long-term planning and defining the investment universe. Tactical Asset Allocation (TAA) allows for short-term adjustments, aiming to seize immediate opportunities or mitigate risks. We exercise TAA selectively, prioritizing a high conviction of positive outcomes.
Fixed income investments at LCI prioritize risk mitigation over return maximization. This approach is reflected in our strategy of maintaining a highly diversified portfolio across various dimensions, including countries, debtor types (both sovereign and corporate), and bond categories. Additionally, we actively hedge against currency risk in fixed income portfolios to counter currency fluctuations and stabilize returns.
Moreover, we employ a Strategic Asset Allocation (SAA) and Tactical Asset Allocation (TAA) framework in our income strategy. However, unlike in equity investments where the goal may be to outperform benchmarks, our focus in fixed income is primarily on risk minimization.
This approach ensures that our fixed income portfolios are positioned to withstand market fluctuations and deliver stable returns.
Overall, LCI’s investment process provides a comprehensive, adaptable and client-focused approach to portfolio management. By combining strategic long-term planning with selective tactical adjustments, LCI ensures that its clients’ portfolios are well-positioned to navigate various market conditions while aligning with their specific financial objectives.