Highlights of This Special Edition
The investment approach works
Consistent with our view we started into the year with a positive outlook for equities. In line with our well-proven investment philosophy, which is based on active management with a strong focus on capital preservation, we pro-actively reduced our equity market exposure as soon as the first reports of the coronavirus surfaced in Wuhan, China.
Since the outbreak of the Coronavirus, we stuck to our active and risk-oriented asset allocation framework and hence could preserve our clients’ capital also in times of unprecedented market stress. To be specific, we continued to aggressively hedge underlying risk exposure since COVID-19 started to spread in Italy in order to protect assets during the current turmoil.
Outlook and Positioning
As of today, short-term market risks outweigh the potential of a quick recovery. As many uncertainties still remain, we keep our defensive allocation towards equities.
While we remain strategically optimistic towards equities in the medium- to long-term, we currently focus on asset protection and capital preservation. Should the facts or underlying market conditions change significantly, we will adapt our view and our allocation, respectively. We will keep you apprised of it.
For a more in-depth analysis, please download your copy of the March 2020 Trading Update.