Asset Management

Banca del Ceresio offers asset management services through discretionarily  managed portfolios within the general framework laid out by the Swiss Bankers Association.

The bank's investment philosophy is centered on understanding each client's situation, wishes and needs, to determine the appropriate degree of risk and liquidity for each portfolio also keeping in mind once in a generation possible worse case scenarios.

The bank has traditionally held a barbell approach to portfolio construction being convinced that the best risk adjusted return opportunities are more often found at both extremes of the risk spectrum while most investors prefer to focus on the middle ground.

In normal times, capital preservation is mainly achieved through short term deposits and government securities prudently diversified by currency. The defensive portion of the portfolio will rarely have a significant exposure to duration and credit risk. Inflation-linked government bonds are opportunistically utilized. In times of high risk of monetary disorders, gold can occasionaly be used.

In seeking to achieve the best results in capital growth for the aggressive portion of our clients’ portfolios, we have, since the early sixties, outsourced assets to some of the most talented independent money managers worldwide. This has led us to an early and substantial exposure to non traditional investments (hedge funds).

In traditional equity investments, we also try to identify superior managers outside the Group and have often succeeded as proven by the numerous awards won by our SICAV Vitruvius. But we have not hesitated to fall back on indexation when no talents were evident.

Firm in the belief that human talent is capable of delivering higher than average results in a consistent manner over time, the Group's investment philosophy is based on the research and selection of ‘individual talents’ and not of investment strategies.

Talented managers usually excel when given the opportunity to apply an active management approach; this is typically achievable only in independent structures with a very high entrepreneurial content. Generally these managers tend to have objectives of absolute return combining a maximum level of flexibility in the investment processes with a very strict discipline in the management of risk.

The alignment of investment objectives between the manager and his investors is fundamental and usually expressed through the co-investment of capital. Professional integrity is also of primary importance. The manager's interests have to be entirely aligned with those of the investor to achieve the best results over time.

The research process to identify these individual talents is extended across various fields including asset management companies and the proprietary desks of major financial institutions where they have learned to understand the two basic ingredients necessary to express their talent: financial analysis and risk management.

The Group's research team meets, analyses and tracks several hundred managers with different experience, styles and track records every year. This process allows us to identify new candidates and monitor known managers in order to continuously evaluate their results and eventual developments.

This approach is applied to the managers that operate in the world of alternative investments and also to those that express their potential through an active but more traditional management style.

Banca del Ceresio Group manages a range of funds of hedge funds programmes with a geographic focus and emphasis on directional strategies. Global Selection Advisors, a fully owned subsidiary manages the Selection Holdings family of funds. For the Italian market Global Selection SGR manages “Fondi Speculativi”, Italian domiciled funds of hedge funds.

The same investment philosophy is also applied to Vitruvius a multi-advisor Luxembourg SICAV managed by Belgrave Capital Management in London. Vitruvius capitalizes on the Group's wealth of experience in the selection of talented fund managers in a traditional investment vehicle that is innovative in its conception and its management philosophy. The main characteristic that differentiates Vitruvius is that each portfolio is allocated to one or more external investment advisors, many of whom also manage hedge funds.