Jo Why Lee

London - United Kingdom

    Genève Invest Review- Fixed income - Strict security criteria: The road to profitable portfolio investments

    December 11, 2014

    business solvency

    Due diligence is a vital part of any investment decision. In this piece we review how Genève Invest, and similar companies, are setting the standards in pre-selection of corporate bonds, removing much of the uncertainty from these investments.Due diligence is a vital part of any investment decision. In this piece we review how Genève Invest, and similar companies, are setting the standards in pre-selection of corporate bonds, removing much of the uncertainty from these investments.

    In this day and age investors want security above all else. Investors have been paying more attention to fixed income investments in the form of corporate bonds. Portfolio management can be stressful for an investor of any financial means, so options that involve a guaranteed return can be attractive to any investor.  According to experts, fixed deposit investments are an appealing alternative to high-risk or ‘inflation-exposed’ forms of investment.  Those who invest in corporate bonds issued by large-scale companies receive a fixed interest income, which, although pay outs can vary, are an enticing option for those who are concerned with secure investments.

    In fixed income investments, for each bond the corresponding company guarantees the fixed deposit payment of an annual interest coupon, as well as the repayment of the bond’s nominal value at maturity. The fixed-income specialists at Genève Invest agree that, if properly researched, sourced and monitored, investments in this area could yield between 7 to 8 percent in returns per annum.

    Currently, the bond market situation is challenging. However, the situation still has elements that are attractive to any investor who wants to add some diversification to their investment portfolio, especially while many bonds currently sell below their nominal value.

    Nevertheless, portfolio manager at Genève Invest Europe, Daniel Jark, recommends careful consideration of safety criteria when compiling investment portfolios. "The pre-selection of corporate bonds through us always follows a special and in-depth in-house analysis of each underlying company. This includes their business models and metrics, because, of course, the solvency of a company in this system is the key safety criteria,” Jark explains.

    At Genève Invest, investment specialists always set amounts above €50,000 on a broad diversification success-model with corporate bonds bought based on the value-principle, preferably purchased in the Euro Zone with management of currency fluctuations in mind. 

    "Most important is the permanent return-optimisation, including macroeconomic developments. We take special precautions in the event of an insolvency of a company," Daniel Jark adds. The safety advantages investors will receive with the assistance of specialised corporate bond asset managers are unparalleled. “Genève Invest Europe review and take all investment portfolios entrusted to asset managers very seriously, with secure investment processes, principles and policies at the forefront of their minds.”

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