How to Find the Best Investments | Portfolio Management

 

As an investor in Formuepleje, you get a capital manager who works purposefully to give you as high a return as possible – without the risk accompanying it.

That’s why we’ve been upgrading on the investment front, and our investment department today consists of 20 specialists who are not dealing with anything other than finding the best investments within their respective areas of expertise – including shares, Danish bonds, loan currencies and corporate bonds.

Investment Committee increases the security of investors

 

Investment Committee increases the security of investors

The Investment Committee is responsible for the capital management’s investments and decides on the basis of the discussion in the investment forum whether changes should be made in relation to the asset allocation (shares, bonds, corporate bonds, possibly leverage), interest rate and currency exposure.

The committee’s members have broad experience from the financial sector, but today they are not responsible for a specific asset class. It ensures that emotions are kept separate from the investment process and that good investment decisions are good arguments and rational considerations.

The asset allocation of asset management is dynamic over time. At least twice a month, we systematically challenge all allocation decisions, but most often the long-term fundamental basics and risk scenarios are maintained over a number of years.

The investment committee’s decisions are reflected in all portfolios managed by the Property Management Group, but always with due regard to the guidelines for the individual portfolios.

 

The big picture

The big picture

Several times a month, the Investment Committee meets with asset management to discuss all significant issues relating to macroeconomics, capital markets, the pricing of various asset classes and portfolios.

At the meeting, individual asset managers provide a comprehensive account of developments within their specific focus area. In this way, we ensure that all investment decisions are made on a solid and well-documented basis.

Special focus on the risk

One of the primary focus areas in investment forums is the risk analysis and management. Therefore, we typically work with three different return scenarios for possible probable developments in the financial markets:

  1. A main scenario
  2. A positive scenario
  3. A negative scenario

In addition, we take into account a number of more specific risk scenarios, and although they are usually not particularly likely, they can become major challenges if they materialize.

If the likelihood of a negative scenario increases, then, based on the pricing of the relevant asset classes, a determination is made as to whether the risk should be reduced by means of restructuring.

 

AB selects the best global shares for wealth management

 

AB selects the best global shares for wealth management

For the selection of the shares for Formuepleje’s global equity portfolios, Formuepleje has chosen the share manager CPH Capital Fondsmæglerselskab, which is owned by AllianceBernstein (AB). AB is an asset management company that strives for high quality in its stock selection and for many years has outperformed its benchmark. The company’s portfolio managers are highly specialized and have many years of experience in analyzing and selecting the best global stocks at the lowest price.

To live up to AB’s quality requirements, the companies must be able to show, among other things:

  • A strong cash flow and a strong balance
  • Lasting value creation as a result of a solid business foundation
  • A strong leadership

In addition, companies are preferred who, as part of a long-term investment strategy, prioritize sending earnings back to shareholders in the form of dividends or share buybacks.

Get more information

Get more information

 

Property management’s focus on long-term quality investments has generated solid returns for our investors since 1986. Read more about our results through the time in the Knowledge Center .

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