Preservation and performance are not opposites
Bordier’s stated position is that preserving capital and producing performance are complementary rather than conflicting, and that the first promotes the second. Long-term performance is built by avoiding excesses, and by compounding the money that was not lost.An objective is not a risk profile
A balanced portfolio is a risk profile. It is not an objective in its own right. There are two prime investment objectives: to grow capital, or to take an income from it. Growth ranges from preserving existing capital in real terms, meaning keeping pace with inflation, to creating additional wealth. Income raises a second question, which is how far a higher income now matters against the portfolio’s ability to keep paying a rising income later. Whoever holds the suitability duty tests the answer.Convictions, held independently
Investment decisions are taken independently and rest on convictions supported by analysis. Bordier states that this is what gives it the confidence to go against the consensus view when it judges that appropriate.The process looks forward
The process is forward-looking. Bordier identifies underlying trends, builds scenarios from them and selects assets against those scenarios. In the equity process, fair value is tested against Bordier’s own scenario rather than against a market view.Portfolio management is a human science
Bordier describes portfolio management as a human science. Technology analyses, structures and monitors a portfolio. The decision at the end of that work is a human one, taken by someone who knows the client’s tolerance for risk, personal circumstances and objectives.The methods are the bank’s own, the products are not
Stock selection, the fixed-income framework and the funds-only portfolios are all developed in house. What goes into a portfolio is chosen on open architecture, and Bordier does not issue its own structured products. The bank runs no investment-banking book, takes no speculative positions on its own balance sheet, and lends only against clients’ own portfolios.Related
- Risk management, the risks these principles are set against.
- Strategic asset allocation, where the long-term view is expressed.
- Entity and structure, the balance sheet behind the philosophy.
General information only. Not investment advice, not a solicitation and not an offer. Eligibility, services and terms differ by jurisdiction and by client. Speak to your banker about your own circumstances.