At regular intervals Palomar Asset Management’s investment committee assesses the financial market using macro-economic analyses in order to define its strategic and tactical asset allocation programme.
Palomar Asset Management pursues a long-term, conservative investment strategy. For reasons of cost and transparency, we avoid structured products. Preserving a real equity base is fundamental to our approach.
We believe in “value investing” and view diversification as indispensable, when viewed in terms of risk.
We attach great importance to choosing the right securities to drive performance. The investment committee bases its decisions on intensive research.
In the area of fixed-interest investments we focus on:
- the issuer’s risk/credit rating (default risk)
- duration analysis (interest risk)
- analysis of yield environment and expectations with regard to inflation
In selecting shares, we take a long-term, value-oriented view, limiting individual investments to developed regions with markets that are transparent, liquid and regulated. Investments deviating from this norm are made through diversified funds or ideally through indexed products.
Our stock-market analyses are based on:
- a fundamental assessment of the relevant company, current market price and business prospects
- market position, products, and management
- financial arrangements and balance-sheet quality
As well as looking at any risk involved, we also take account of how liquidity risk is assessed in all market situations, comparing this critically with yields offered.
How a portfolio is structured is determined according to client specifications (risk capacity, risk propensity, expected yield) as well as with our internal risk guidelines. In addition, the professional ethics of the Association of Swiss Asset Managers apply.
We take a core/satellite approach to individual investment strategies. This comprises a long-term, conservative core portfolio, supplemented, where appropriate, by special ‘satellite’ themes or markets as these present themselves within the current macro-economic environment.
Regular assessment of individual positions ensures that the portfolio always remains within the guidelines agreed.