Managing wealth: how can you invest your money, other than bringing it to one or more banks? One answer could be what's known as a "multi manager". Here, Patrick Picenoni of Altrafin Ltd., tells Swiss News about the business he launched in Zurich four years ago.

AuteurSethi, Aradhna
Fonction Business

Shares, bonds, hedge funds, real estate ... there are so many areas where you could invest your assets. It could be confusing. Unless, of course, you happen to be an expert in global finance and economies.

As said, banks are one institution you could go to. But for tailor-made solutions to suit your requirements, accommodate the degree of risk you want to take, and give you that personal touch, you could try one of several so-called 'investment boutiques'. An independent wealth management and advisory company, Altrafin offers no investment products of its own but specialises in scouting the world market for good buys for clients.

Analysing The Risk

Picenoni says the term "wealth management" is fairly self-explanatory, but there's more to the job than you might think. Wealth managers analyse a client's personal situation before developing a specific investment strategy to form the basis of an investment plan.

Easy though it may sound, the process involves lots of research in the area of global financial markets and investment options, as well as a thorough understanding of every client's risk tolerance over time. "Wealth management--the way we do it--begins with understanding and analysing a clients' personal circumstances, needs, investment and other restrictions, in order to determine appropriate investment return and risk parameters," he says.

Investing With A Difference

Altrafin manages tailor-made segregated portfolios, and its level of discretion to act without the prior approval of the client is governed by a legal agreement with that person. The company focuses only on the "bankable" or "liquid" assets of an investor's total wealth. This encompasses cash, equities, fixed income and, to an extent, hedge funds (an investment fund where the fund manager is authorised to use derivatives and borrowing to provide a higher return, albeit at a higher risk.)

Unlike many investment institutions that deal with single securities, Altrafin adopts what it calls a multi-manager approach. "We don't buy single securities like Siemens, IBM, Sony, Samsung or bonds of distressed companies or emerging markets. Instead, we buy a specialised fund that is usually broadly diversified, and where the fund manager has a specific edge/strength in the application of its investment strategy," Picenoni says.

Company Philosophy

To allocate money to the US equity markets, for example, Altrafin will buy an investment fund specialised in US equities and managed locally...

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