This discussion of the fixed-income research done at Banque Privée Edmond de Rothschild SA will focus on the people who make it possible day by day, as well as on the way they work and on how conceptual reasoning is moulded into dynamic investment strategies.
Capital Markets Dept
The Bank's fixed-income research is mainly done in the Capital Markets Department, which also comprises most of the related segments. Thus, our analysts work alongside those responsible for fixed-income dealing, management, advisory services and training. Only syndication, a source of potential conflicts of interest, is deliberately excluded from the range of activities handled by the department. Such close contact between specialist segments is quite rare in the banking industry and makes for a dynamic, effective treatment of fixed income.
These synergies are reinforced by the proximity of the Bank's other front-office services. Equity Trading, Forex and Structured Solutions are all located very near the Capital Markets Dept, so our bond research team can easily collaborate with the 30 or so traders who operate in most of the world's markets.
Well-advised recommendations
Our analysts have successfully completed some of the most respected academic programmes in the field, earning top-flight accreditation that ranges from doctorates to CFA diplomas to Master's and Bachelor's degrees. Many of our employees continue to study while working, including two who intend to become CFAs. All this learning results in well-informed advice and appropriate recommendations.
Comments and flashes on our intranet
Our fixed-income advisers use leading-edge technology to broadcast the analysts' recommendations. This includes not only financial news platforms but also the unmatched dedicated software developed in-house by Banque Privée Edmond de Rothschild SA. Our bond portfolio analysis, investment proposals, switch proposals, lists of recommended issues, news and other information are made available to all the Bank's staff instantly on our intranet.
Executions at the best possible price
Our traders can claim an average of 20 years' experience in their job, so they have in-depth knowledge of the markets and the parties involved. In our business, the ability to deal quickly in excellent conditions provides a clear advantage when it comes to executing orders. We have this ability and can therefore guarantee that you get "best execution".
Our bond trading turnover ranges well above CHF 10 billion a year. As a consequence we have close relations with the most competitive players in the capital markets, and our good reputation makes us a first-choice counterparty.
Applying research to bond funds and customised allocation
Our fixed-income managers promptly apply the recommendations arising from our analysts' convictions. This is done across a range of styles that includes a universal approach, on the one hand, and traditional, specific or Mosaic management, on the other.
Mosaic
Mosaic
This is a unique form of fixed-income management based on a dynamic, modular design and Cartesian principles. It contains four weighted methodologies: Trading, Strategy, Credit and Index. Each of these features its own debt segment and investment horizon.
In addition to the security provided by its coherent, constantly justifiable asset allocation, Mosaic features enhanced reactivity to market movements and anticipations.
Mosaic management is available to seasoned investors, who will appreciate its customised allocation mode for predetermined criteria and restrictions. It is also used in our freely accessible fixed-income investment funds (Prifund Bond USD, EUR and CHF), which have won the following awards:
Edmond de Rothschild Prifund Bond (CHF), ranked number one in 2005 by Le Temps.
Edmond de Rothschild Prifund Bond (CHF), ranked number one in 2005 by Bilanz.
Edmond de Rothschild Prifund Bond (CHF), named best fund over three years (CHF bond category) in 2008 by Lipper.
Edmond de Rothschild Prifund Bond (CHF), named best fund over five years (CHF bond category) in 2008 by Lipper
Edmond de Rothschild Prifund Bond (£), named best fund over three years (Bond Pound Sterling category) by LipperFund Award 2010 (Netherland).
You will appreciate having Mosaic, along with the choice between fund management and customised asset allocation.
Knowledge sharing
Our instructors have all worked in the fixed-income segments described above and love to share their enthusiasm for the business. This is done either through internships (that have numbered 200 in the past 10 years) or through lectures given at Geneva's Business and Management University.
Expansion on a bold scale
The growth of our Capital Markets Dept, founded in 1995, reflects not only the phenomenal rise in our Bank's results but also the ever greater appeal of fixed income among investors. Our department has continually expanded despite two steep downturns in the business cycle. This trend denotes the unshakable confidence of our Bank's senior management, which takes a long-term view.
The three original members of our department still exercise varied duties within a much larger team. Our multicultural staff now includes more than ten men and women who trained in the banking industry or came to us from university. The average seniority, over ten years, attests to our attachment to the values of Banque Privée Edmond de Rothschild SA and to a degree of loyalty seldom seen elsewhere.
We will be glad to explain our convictions on fixed-income trends to you, and to hear what you think. Even the greatest experts are divided on the subject, so a bit of humility is needed. When it comes to serving you and your wealth, our account managers will adapt our expertise to your situation and to your own expectations of what lies ahead.