Step 1

Investor's DNA (Suitability)

1

Personal

Understanding your clients needs and what they expect.

2

Expectations from long term investments

Understanding how it matches up with current and future investment decisions.

3

Financial Profile

Low risk tolerance = Conservation of Wealth.

Medium risk tolerance = Investing with a conservative approach and a goal of long term growth.

High risk tolerance = Growth of Capital and has a higher risk tolerance.

Step 2

Portfolio Investment Analysis

Macroeconomic

Analysis of local and international perspectives based on economic indicators. Looking for a global positioning through out different asset classes.

Fundamental

Analysis of companies, stocks, commodities, financial products that compromise our equity portfolios, with technical, financial and legal advantages, inserted in the macroeconomic environment.

Quantitative Risk

Measuring the quantitative risk of equities allocation in relation to the risk appetite for each individual investor. We utilize mathematical principles for a qualitative analysis in selecting the equities in our active portfolios.

Step 3

Portfolio Investment

Equity portfolio’s are adapted to meet each individual investors profile.

Products typically suggested for each type of portfolio

Conservative

  • Government Bonds (LFT, LTN, NTN-F and NTN-B)
  • Private Credits (CDB, LC, LCI, LCA, LF and DPGE)
  • Fixed Income Funds
  • Debentures
  • Real Estate Credits

Moderate

  • Government Bonds(LFT, LTN, NTN-F and NTN-B)
  • Private Credits (CDB, LC, LCI, LCA, LF and DPGE)
  • Fixed Income Funds and Private Credit Funds
  • Multimarket Fund
  • Real Estate Fund
  • Inflation Fund
  • Debentures
  • Real Estate Credits
  • Structured Notes
  • Equities

Aggressive

  • Government Bonds(LFT, LTN, NTN-F and NTN-B)
  • Private Credits (CDB, LC, LCI, LCA, LF and DPGE)
  • Fixed Income Funds and Private Credit Funds
  • Multimarket Fund
  • Real Estate Fund
  • Inflation Fund
  • Debentures
  • Real Estate Credits
  • Structured Notes
  • Equities
  • Future Market (Options, Term, Income and FX)

Step 4

Portfolio Strategy

PTo properly match the risk profile, we consider several characteristics such as a higher or lower adversity to risks. Considering a potential loss of invested capital, the lifetime of an investment can be short, medium or long term or the level of fluctuations in expected volatility.

There is no perfect classification for each profile, this why through diverse characteristics and studies, that we obtain the below profiles:

Conservative

Investors who are looking to invest in products to guarantee capital preservation, and receive interest payments equivalent to yields on short term debt. The preference is safety over unpleasant investment surprises.

Objective: Preservation of capital

Expected Volatility: < 1% per year

Allocation:

  • 95% high grade fixed income
  • Maximum 5% investment in private credit

Moderate

An investor looking for financial products that guarantee a preservation of capital, and who is also willing to assume some risk, such as longer term investments.

Objective: Capital growth with guarantee

Expected volatility: between 0,1% and 3% annualized

Allocation:

  • 80% allocation to high quality fixed income
  • Maximum allocation of 10% to private credit
  • Maximum allocation of 10% in a multimarket fund
  • Maximum allocation of 10% in a credit fund (considering previous risks)
  • Maximum allocation of 5% in stocks

Agressive

Investor that is willing to partake in longer term investments, with the goal of being able to accommodate adverse volatility. This investor has a preference for investments with a higher rate of return.

Objective: Growth of capital

Expected volatility: between 1,5% and 4,5% annualized

Allocation:

  • 70 allocation to high quality fixed income
  • Maximum allocation of 15% to private credit
  • Maximum allocation of 15% in a multimarket fund
  • Maximum allocation of 10% in a credit fund (considering previous risks)
  • Maximum allocation of 5% in stocks funds (with a longer term bias)
  • Maximum allocation of 5% in stocks
  • Maximum allocation of 5% in futures and derivatives

Step 5

Portfolio Rebalancing

A need for rebalancing or effecting exchanges in securities may occur for the proper reallocation of a portfolio if there is any change in investment expectations, economic environment or a change in the investment focus from the investor.