INVESTMENT PROCESS

At Notenstein Private Bank Ltd, we question established methods and seek better solutions. That’s why our bank has developed its own innovative investment process to implement your investment strategy, based on sound financial theory and backed by quantitative research. This approach enables us to understand your requirements at an individual and personal level.

Risk/Return Classes
At the heart of the Notenstein investment process are four Risk/Return Classes (RRC): blue, green, yellow and red. This class structure reflects the maxim that higher returns can only be achieved by assuming greater risks. Accordingly, each of the individual RRCs contains investment instruments with similar risk/return characteristics. This scientifically-based classification has significant advantages over conventional categories such as bonds, equities, funds or structured products as it takes systematic account of factors such as volatility, liquidity and Counterparty risk. This ensures that our clients’ portfolios are highly transparent in terms of the overall risks.

Investment principles

Depending on each client’s investment horizon and risk tolerance, assets are allocated to the Risk/Return Classes within the selected investment solution. Notenstein adheres to four investment principles that are key factors in all investment decisions:

Diversification

We allocate assets to as many uncorrelated investments as possible, so the overall risk for the portfolio is considerably reduced while the expected returns remain constant.

Discipline

We define and consistently follow the long-term investment strategy, avoiding impulsive decisions to buy or sell prompted by emotional factors.

Transparency

We provide transparent explanations of the investment process, the potential investment solutions and the risks; we use instruments that are easy to understand; and we provide reporting on current performance, including detailed risk assessments.

Liquidity

We monitor the liquidity of each investment to ensure that clients can adjust their portfolio when required.