Financial Markets

The construction of our portfolio reflects a global perspective, based on rigorous diversification across different sources of risk and return. Capital allocation is structured around a strategic framework in which each investment serves a defined purpose within the portfolio as a whole.

In equities, we combine broad and diversified exposure to the markets with direct investments in companies whose quality and valuation offer a distinctive level of attractiveness. The choice between individual stocks, investment funds and index-tracking vehicles is based on the analysis of each opportunity rather than on any predetermined preference. We invest directly when our knowledge of the issuer provides a sufficient basis for establishing a position; we use active management when the manager’s experience and investment process provide added value; and we use index-tracking strategies when we seek broad, efficient and diversified exposure to a particular market or factor. The investment vehicle therefore reflects the nature of the opportunity and the role it is intended to play within the portfolio.

In fixed income, we likewise maintain a selective approach, taking into account credit quality, maturities, duration, sensitivity to interest rates and issuers’ ability to meet their obligations. Diversification across different economies and maturity structures contributes to portfolio stability and income generation, while maintaining a level of risk consistent with the strategy as a whole.

We maintain sufficient resources to meet anticipated commitments and needs without relying on immediate market conditions, while at the same time preserving the capacity to act when particularly attractive opportunities arise. This flexibility allows us to avoid forced decisions during periods of market stress and to reallocate capital when market corrections create more favourable valuations.

Within this framework, we consider the risk of permanent loss of capital, concentration, credit, duration, currency and valuation, assessing for each investment both its potential and the factors that could impair its fundamentals and its performance under different scenarios.

The portfolio is continuously reviewed, but investment decisions are grounded in fundamental analysis and a long-term horizon, rather than in market fluctuations. We seek to distinguish temporary movements from changes that have a lasting impact on the value of assets, avoiding both unnecessary portfolio turnover and remaining invested in positions when their prospects no longer justify the capital committed. This discipline allows us to preserve our independence of judgement, allocate resources with patience and rigour and focus our strategy on sustainable value creation.