SwissDirekt - Fixed Income Portfolio
The SwissDirekt Fixed Income Portfolio mandate is the most efficient and disciplined answer to the uncertainty of the Financial Market.
The program will buy and sell bonds via the Bloomberg fixed income trading platform, which guarantees the most competitive prices. The result is higher returns for clients because there is no extra cost involved. The portfolio invests in a conservative low risk selection of high quality bonds only and generates return through both, interest and capital growth.
The goal of this mandate is to produce a better performance than a classic bond portfolio, which will be accomplished in applying uncompromised tactical discipline with respect to the structure of the portfolio combined with realizing special trading opportunities.
The active trading component within the portfolio is pivotal for generating better returns. Through active trading the manager seeks to profit from price opportunities which can add significant return potential while only modestly changing the risk profile of the portfolio. Investment decisions are based on various factors, such as price premiums, expected interest rate movements, yield curve. Some profit potential arises from trading new issues where the portfolio will buy bonds at the issue price from the primary market to sell on the secondary market at a retail price.
The yield component, on the other hand, safeguards a regular income while reducing value fluctuations to a minimum. The portfolio performance will be the result of interest and capital return deriving from active bond trading across primary and secondary market of new issues.
The target performance is to achieve a return in excess of 4.5% per annum, consistent with a volatility of no more than 2%
Advantages (Summary):
Best execution only (no mark up)
No trading costs
Extremely effective trading process via Bloomberg
Subscription of new issues at a “Reoffer Price” on the primary market
Low management Fees 0.30%
Custody fees (0.40% till 350 000 Euro; 0.30% above 350 000 Euro)
Solid Bank reputation , Bank Sarasin
The Fixed Income Portfolio Bond Managed Account is held at Bank Sarasin, one of the most reputable international banking institutions and a leading Swiss bank since 1841
Manager - Vico Grecchi - Professional experience:
Vico Grecchi is a specialist in fixed income trading and has been managing Fixed Income Funds and Money Markets Funds, heading the Fixed Income Department of Bank Safra, since December 2001.
Previous to this, he was working for JP Morgan,