Private Mandate: Long-term Growth
Seeking to maximize returns through dynamic allocation
This investment strategy seeks to generate longterm capital gains through investing in the equity
and fixed income markets. It follows a dynamic
allocation model that shifts between riskier assets
(global equities) and safer assets (investment
grade bonds) depending on market conditions,
targeting high equity participation when the perceived potential for gains is high and little to no
equity participation when the opportunity for growth
appears muted. The discretionary Private Mandate
might be of interest to investors who can tolerate
considerable volatility and a high degree of risk.
At a Glance
Client Goal
To maximize returns over
the long term
Objective & Approach
Seeks capital gains through
dynamic allocation between
equity and bond investments
Investable Asset Classes and Allocation 1
Positioning
Defensive
Opportunistic
100%
100%
Investment Process
This Private Mandate’s investment process is designed to
generate potential returns through two distinct activities:
dynamic asset allocation, and selection of securities and
investment instruments.
Asset allocation for the portfolio follows a quantitative model
that dynamically allocates between asset classes to achieve
the long-term objective. One of the main inputs to the model is
the Credit Suisse global Risk Appetite Index (RAI), which offers
insight into market participants’ current views of risk. With
a long track record, RAI analyzes historically proven indicators
of market sentiment, capturing opportunities for contrarian
positioning at sentiment extremes. At other times, it follows the
trend by allocating towards the better-performing asset class.
Liquidity
Bonds
Equities
Recommended
Investment Horizon
More than 12 years
Available Reference
Currencies
CHF, EUR, USD
Minimum Investment
CHF 1 mn
1 This
or equivalent in other currency
is an indicative asset allocation, which may change over time.
Risk control is provided via specific stop-loss signals seeking
to protect assets during short-term downturns, and valuation
signals that limit the maximum equity exposure at times of
perceived high valuation.
The model is calculated and adjustments to the portfolio could
be made daily. The weighting of the two components of the
portfolio – risk-seeking equities and risk-averse bonds – may
vary between 0 and 100%.
Once the weighting of the components is set, the equity
component is constructed with a diversified portfolio of global
equities, selected systematically using the Credit Suisse
proprietary HOLT method. HOLT uses cash flow data to
identify undervalued stocks and market segments. The fixed
income component is constructed from a diversified portfolio
of investment grade bond investments.
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Investment Team
About Credit Suisse
As part of Credit Suisse Private Banking & Wealth Management,
the discretionary mandates investment team draws on one of
the world’s largest, most respected research and investment
organizations, with more than 300 experts. The Chief Investment Officer works closely with his team of regional CIOs
and dedicated discretionary mandate portfolio managers.
Together they have long experience in transforming research
and analytical insights into asset management strategies.
With more than 2,000,000 private clients and 100,000
corporate, government and institutional clients, Credit Suisse is
one of the world’s largest and most trusted banks. We operate
as one integrated bank with a unique combination of a 150-year
excellent private banking tradition and global investment
banking capabilities, allowing us to seek out opportunities for
our clients. We are widely recognized for our global research
and expertise in financial and investment solutions.
Potential Benefits and Risks
For more information about Private Mandates and how
Credit Suisse can help you achieve your personal financial
goals, please contact your Relationship Manager.
Benefits
• The reassurance of having one of the world’s most trusted
financial institutions manage your investments according to
your preferred objectives
• A portfolio managed by a seasoned investment team and
monitored according to stringent guidelines, with strict risk
management
• Flexibility to respond quickly to changing market environments
• Attractive equity alternative with the potential to capture
the full upside of equity markets while limiting downside risk
(rule-based)
• Regular, detailed reporting
Risks
• Returns
depend on the strategy, asset allocation and securities
investment models, which have proved of value
in the past, might not be of value in the future
• Market developments and the performance of foreign
currencies can influence the portfolio and result in losses
• No capital protection or return guarantee
• The liquidity of the instruments depends on the product and
the respective market environment
• Not all risk factors driving performance might be covered by
the investment model
• Equities are subject to market forces and hence fluctuations
in value, which are not entirely predictable
• Bond investments can include risks such as credit risk,
inflation risk and interest rate risk
• Rule-based
This document was produced by Credit Suisse AG and/or its affiliates (hereafter “CS”) with the greatest of care and to the best of its knowledge and belief. This document
constitutes marketing material and is not the result of a financial analysis or research and therefore not subject to the “Directives on the Independence of Financial Research”
published by the Swiss Bankers Association. The content of this document does therefore not fulfill the legal requirements for the independence of financial research and there is
no restriction on trading prior to publication of financial research. The information and opinions contained in this document were produced by CS as per the date stated and may be
subject to change without prior notification. Although the information has been obtained from and is based upon sources that CS believes to be reliable, no representation is made
that the information is accurate or complete. Only the provisions, conditions and risk warnings contained in the client’s current agreement are legally binding. CS does not accept
liability for any loss arising from the use of this document or from the risks inherent in financial markets. Historical returns and financial market scenarios are not reliable indicators
of future performance. This document constitutes neither an offer nor a recommendation to conclude a discretionary mandate or another financial transaction. Before concluding
a discretionary mandate or another financial transaction, the recipient is advised to check that the information provided is in line with his/her own circumstances with regard to
any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. In general, the investment products featured in this document should only
be purchased by existing or future discretionary mandate clients of CS. Discretionary mandates and/or investment products used within the framework of these mandates (e. g.
alternative instruments, structured instruments and derivatives) may involve a high degree of complexity and risk, or may be subject to stock market fluctuations. The investment
objectives and risk assessments, etc. contained in this document are target values that must be viewed in relation to the market situation. There is no guarantee that these target
values will be maintained or achieved. This document will be distributed by Credit Suisse AG, Zurich, a bank being regulated by the Swiss Financial Market Supervisory Authority.
This document is not intended for persons who, due to their nationality or place of residence, are not permitted to receive such information under local law. Neither this document
nor any copy thereof may be sent to or taken into the United States or distributed in the United States or to any US persons (within the meaning of Regulation S under the US
Securities Act of 1933, as amended). The same applies in any other jurisdiction except where compliant with the applicable laws. Copyright © 2014 Credit Suisse Group AG
and/or its affiliates. All rights reserved.
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SJMO 62 3974 11.2014
Credit Suisse AG
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