Wealth Management

Asset Allocation

ATAG Family Office Ltd is solely committed to the well-being of its clients. In order to achieve our client’s financial goals, it is essential that we can advise and act independently of banks, brokers and other service providers. Our focus is an integral, neutral, independent and solution-oriented approach, which is not solely compliance-driven. The areas of "assets under advisory", legal and tax are closely linked within asset structuring so that we can maintain an overview of our client’s situation and offer them a superior service and the advantage of a one-stop-shop.

An effective asset allocation strategy tailored to the individual situation of the client is one solution for long-term investment success. Asset allocation is responsible for more than 90% of variations in portfolio performance. When assets are invested over time or over several cycles, the key driver of the variance of portfolio returns has been the asset allocation decision. Ineffective diversification simply adds more securities, without enhancing returns or moderating risk. There is no single asset allocation model to fit each and every investor, or for every stage of life. The asset allocation decision is a personal one. That is why our clients receive personal support on strategic issues.

Economic fluctuations and/or changes in investment objectives or personal or financial circumstances will influence the asset allocation, and the asset allocation of today may not be appropriate in the future. Any growth or decline within asset classes may cause asset allocation ratios to shift. It is important to monitor asset allocation periodically and rebalance portfolios to ensure that investments remain in a suitable mix.

Our clients benefit from the fact that we are aware of their main risks, be it legal, tax or financial. Strategic asset allocation is proposed according to the client’s personal risk profile. The risk analysis is carried out using stressed scenarios – the emphasis is on liquidity and capital preservation.

Manager and Service Provider Selection

The selection process we conduct on behalf of our clients when sourcing asset managers and service providers is extremely thorough. We work exclusively with independent asset managers and we consider the following criteria to be central in our choice of service providers: counterparty risk, control of assets, alignment of interests, reporting efficiency and transparency, stability and pricing. We negotiate the fees in our clients’ name and ensure that any fees and commissions charged are compliant with best industry standards.

Risk and Reporting

ATAG Family Office Ltd requests different risk scenarios from the mandated asset managers to better understand the risks of the investment. We ensure that our clients’ investment guidelines are respected and that there is no style drift amongst the selected managers.

We will define with you the report that meets your requirements. It may be a simple single account report covering your exposure, or a consolidated report taking into account all positions held at different banks. The report may contain risk flagging, valuation of non-bankable assets or other chosen criteria. The report may also show the amount of fee charged, and a check can be made to compare what was agreed with what was charged and follow up on any potential discrepancies.

More

  • Overall and single exposure – concentration of risk / investment guideline
  • Currency exposure
  • Value at risk – capital at risk – leverage – liquidity
  • Fees or commissions charged at each investment level
  • Dynamic valuation model to value the asset class, such as property, art, wine etc.