Understanding
We believe it is paramount that a family has discussed and agreed the long term objectives for investing their money. Our remit is to work with our families to produce a reviewable, comprehensive multi-generational family investment charter.
A family should establish a benchmark based on their entire wealth, therefore different to those proposed by Private Banks based on public market indices.
Our endowment style approach aligns well with the needs of a family over the long term. It is important that, wherever possible, the charter is understood by all involved therefore we encourage multi-generational participation.
Planning
Once the objectives of the family have been agreed a private investment committee will work with the family to agree an overarching investment strategy for meeting long term investment objectives.
All asset classes are considered and any investment preferences or objections incorporated. This may be broken down into sub-strategies to meet bespoke priorities within the family’s main objectives.
The Family’s private investment committee will be on hand at all times to review the agreed strategy against the internal chosen benchmark as well as deliver periodic updates on the potential impact of an ever changing macro economic environment.
Investing
Once the family has agreed with our advice on the strategy(s), we will look to allocate and deploy their capital. We work with only the top investment management and global asset managers.
Our role once deploying our family’s capital is to review performance against client objectives, to understand and often translate the decision making of the investment teams and act as the family’s main point of contact with all selected managers.
Hottinger are unfettered by geography or provider. We have strong relationships across the banking and asset management sector in locations including, New York, London, Geneva, Zurich, Luxembourg and the Channel Islands.
Monitoring
The importance of fully reconciled and independently audited aggregated portfolio reporting goes beyond just the data.
Bespoke periodic analysis of the individual managers performance and measurement against the stated objectives of the family is where strategically vital decisions can be made. It is the importance of this constant review that is the value add for our clients.
As a family office we have a broader asset class understanding through our teams experience and varied backgrounds. This ensures a much deeper conversation when analysing the aggregated wealth position.
Outsourced CIO Services
Our objective in delivering the outsourced CIO solution is to act as an independent investment partner, dedicated to leveraging the depth of our investment expertise, resources and network of professional relationships to support families in achieving often multi-generational investment goals.
Our approach starts with your dedicated investment team constructing a detailed picture of your family’s objectives, constraints and overall risk-profile. Your team will be focused on your portfolio, transparent about the investment decision making process and accountable for ongoing performance.
Initial work is undertaken to establish a clear, well-defined strategic asset allocation framework which is supported by long-term historical data as well as more forward-looking expectations around asset class returns, risks & correlation.
Once this initial asset allocation has been agreed upon Hottinger apply quantitative & qualitative analysis to the available universe of global managers, seeking to identify the very best providers within each sub-asset class. This includes detailed measures of costs, historical performance, volatility, draw-down characteristics and independently reviewed peer-group analyses.
In terms of monitoring, Hottinger provide state-of-the-art consolidated reporting tools which provide clients with a holistic overview of their investment portfolio irrespective of the underlying investment manager, domicile or asset class. Reports can be produced on an ad-hoc basis and are updated daily, providing unparalleled clarity of oversight.
Hottinger work closely with both family members and existing professional advisers to establish an Investment Committee who assume ongoing responsibility for the management of your family’s assets. Committee meetings are held at a frequency and level of engagement to be decided upon by you which seek to cover a detailed overview of the current investment landscape, macroeconomic and individual security perspectives and a granular review of underlying manager performance drivers.
Disclaimer
Please note that capital is at risk with any investment. The potential for profit is accompanied by the possibility of loss. Investments do not guarantee a return, and the value and the income from them can fall as well as rise, so that you may not realise the amount originally invested. Asset allocation, diversification and rebalancing strategies do not insure gains nor guarantee against loss. The use of leverage, shorting, and derivative strategies may accelerate the velocity of the potential losses. The use of currency strategies involves additional risks. Where an investment is denominated in a currency other than sterling, changes in exchange rates between currencies may cause the value of investments to go up or down.
