Discretionary fund management

Bank of Cyprus Group Asset Management, a leading asset manager in Cyprus, provides discretionary asset management services since 1984 and was the first institution to offer global asset management services since 1994. Client base includes retirement funds, insurance funds, investment companies and high-net-worth individuals.

Asset Management key attributes are the following:

  • Design of an optimally diversified portfolio, whereby part may be earmarked for security of income and part may be invested for capital growth, to achieve maximum performance in line with the client's specified risk profile adhering to the client's investment guidelines.
  • Portfolio management undertaken by qualified and experienced professionals.
  • Clientele that includes large institutional organisations in both local and global markets.
  • Access to high-quality research both on an internal level through research and analysis within the Group, the Asset Management unit and the Group Investment Strategy as well as on an external level by international, well-established research providers.
  • Identification of market trends, opportunities and financial instruments with investment value, on the basis of in-depth research.
  • Regular client briefings and detailed portfolio performance reports at pre-agreed intervals and on an ad-hoc basis.

Investment philosophy

Investment philosophy is characterised by a conservative long-term approach with a risk-minimization focus. Fundamental analysis is primarily used with technical analysis used as an additional tool in the portfolio management process.

For global active mandates, top-down approach is used. Main objective is to create a widely diversified portfolio, taking advantage of long-term market trends (beta analysis) and to identify undervalued and overvalued securities, sectors and regions and exploit alpha (alpha analysis) assuming a long-term investment horizon avoiding, to the extent possible, short-term positioning which increases risk significantly.

The investment strategy and decisions are developed on a collective basis and are revised regularly by Investment Committees. Investment Committees’ decisions are focused on asset and sector allocation and general strategy for both local and global markets as well as on the selection of individual securities and funds.

Portfolio Management Process

The first step of the portfolio management process is the determination of each client’s required return in accordance to risk tolerance. For the determination of the client’s investment strategy, certain factors are taken into consideration including the following:

  • investment horizon
  • liquidity considerations
  • legal & regulatory requirements
  • tax considerations
  • other client-specific preferences and restrictions

Once the client’s investment objectives and constraints are analyzed, a strategic asset allocation is determined (e.g. equities vs. bonds vs. cash). This constitutes a long-term approach to achieve the client’s investment objectives. The Asset Manager adds further value to the portfolio through tactical movements between or within asset classes by taking advantage of market opportunities in the short to medium term. Portfolio performance is evaluated against a predefined benchmark that reflects the portfolio’s strategic asset allocation. Communication with the client is carried out through regular reporting based on the client’s needs and requirements.

Financial Instruments

Aiming to construct an efficient and well diversified portfolio, a wide range of financial instruments is used during the portfolio construction process. These include equities, bonds, mutual funds, exchange-traded-funds, capital-guaranteed products, derivative instruments, money-market instruments and deposits in all major currencies offered through the Bank of Cyprus Group or through international brokers.

Risk Management

Primary principle is adequate portfolio diversification across and within the various asset classes. Exposures to various asset classes, regions, currencies, sectors, issuers, individual securities and other sub-allocations are monitored daily to ensure they lie within the permissible ranges of the strategic asset allocation and any other constraints or limits imposed.

Management and monitoring of risks is achieved through widely recognised tools, including the following:

  • Standard deviation of returns
  • Beta
  • Value at Risk (VaR)
  • Stress testing
  • Tracking error
  • Sharpe ratio

Contact Us

For additional information please contact us via telephone on +357 22 121700 or via email at fundmanagement@cisco.bankofcyprus.com.

 

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CONTACT US 800 00 800 / (+357) 2212 8000 EMAIL US