The combination of equity and debt features makes hybrid bonds an attractive financial instrument for the issuer and the investor. As one of the few specialists in Europe, we have focused on this sub-category.

Advantages for the investor

The asset class is particularly suitable for investors looking for a more return than traditional bonds offer, given a solid debtor structure. Due to the different structural characteristics and the great importance of debtor quality, selection in the hybrid environment is particularly crucial. We have specialized in this area and, thanks to a proprietary database that is unique to the sector, we are particularly successful in assisting institutional investors with a traditionally high bond level in their asset allocation. For our private clientele hybrid bonds are not less interesting because of solid debtors and higher interest payments.

Hybrid bonds offer investors higher returns compared to senior bonds. Although hybrid bonds have a long or indefinite term, they are usually redeemed early by the issuer. The probability of termination is influenced by certain incentives. Most recently, the omission of the capital charge led to a higher probability of termination, since rating agencies, banks and banking regulators have set stricter requirements for the imputation as equity. The resulting higher probability of termination has led to a growing demand for hybrid bonds and thus to rising prices.

On the equity side, we have also positioned ourselves in a crisis-prone niche. With exchange-traded options on the largest companies in the U.S. and Europe, so-called blue chips, we are systematically opening up an additional income source for our clients on the equity side.

The key is that we act consistently and never invest with leverage. In addition to traditional dividends, our options offer premiums that are particularly valued by our income-oriented investors. Our private clients like the buffering effect of this extra income. With only a small number of mandates per portfolio manager, we can accurately target each client's individual performance goal by choosing the specific option. We use only listed options on companies with a market capitalization of more than $5 billion.

Options make the risk of a portfolio more calculable and are particularly suitable for investors who do not believe in an unconditional continuation of the stock market boom.

HOW DOES IT WORK? - only available in German

Our two investment competences, hybrid bonds of excellent borrowers and investments in blue chips plus exchange-traded options, can be perfectly combined as an income-oriented multi-asset approach.

On request, we take into account fixed quotas or take over the management of the strategic bond and equity allocations for our clients.

As an investment boutique, we offer our private and institutional investors the greatest possible flexibility:

Investors can choose between exclusively managed portfolios or asset management based on in-house funds.

In the institutional area, we are also often selected in special fund mandates as portfolio managers or advisors. Established contacts to the leading (international) capital management companies already exist.

We manage portfolios in CHF, EUR, GBP and USD, with and without currency hedging. In a mutual conversation the advantages of both strategies can be compared with the objectives.

The choice of the custodian bank lies with the customer.