Strategy What We Believe – Our Investment Philosophy
What We Believe – Our Investment Philosophy
For investment partners to have confidence in a financial institution, it is important that they know the institution's investment philosophy. This defines the key elements of the bank's investment process and influences the strategic decisions it makes.
Credit Suisse Adheres to This Investment Philosophy
Investors want to know that their money is in a place they can trust. It is therefore important for them to understand the philosophy of the financial institution. Innovative investment services should deliver success and it is essential to recognize opportunities and risks in good time.
Here at Credit Suisse, we want our service to be the forerunner in investment decisions. As an asset manager, we see it as our mission to recommend the best possible investment solutions for you. The basis for this is our investment philosophy, which is set out below.
The investment process ensures that all our clients have access to the bank's profound expertise in global investments.
Michael Strobaek, Global Chief Investment Officer at Credit Suisse
One of our core principles is the broad diversification of the portfolio across all asset classes. This means that unexpected events on the financial markets can be absorbed. Our aim is to ensure that your portfolio is less exposed to strong price fluctuations and market distortions.
We put great emphasis on a good mix of securities from the home market and global solutions. With global investments, country risks can be absorbed and additional opportunities for investment generated. The optimum balance depends on the mix of asset classes. Portfolios with a high equity component should be more broadly diversified on an international basis than portfolios with a lot of bonds.
Generally, we hedge fixed-income assets, real estate, and hedge funds against foreign exchange risks. This does not include foreign equities. For the latter, we believe that the opportunities offered by foreign currency outweigh the additional risks. Commodities that are dependent on the dollar are also not generally hedged.
Alternative investments such as hedge funds, real estate, and commodities play a key role in our portfolios. Returns from these investments are less dependent on the general mood of the financial markets. This means that hedge funds are often successful in difficult market situations. Commodity prices follow their own rules of supply and demand and real estate can provide protection against inflation.
In the case of consistently low or even negative interest, the option to hold cash must be carefully considered. Cash can provide a certain amount of protection if the markets lose confidence in the central banks. At the same time, however, investment opportunities are missed. Credit Suisse therefore analyzes the situation on an ongoing basis.