Investment Philosophy

Our investment philosophy is based on a long- term asset allocation aiming to deliver strong risk-adjusted returns for our clients. This strategic position takes into account expected returns, volatilities and correlations over the next 10 to 15 years. Accordingly, it is not adjusted on a day-to-day basis. Nevertheless, the portfolio holdings will almost always deviate somewhat form this static allocation. In fact, during monthly, or in case of unpredictable events ad-hoc, tactical meetings of our investment committee, the global economy and political environment as well as the relative attractiveness of different assets classes are re-assessed. If necessary, the portfolio weights are then adapted in order to seize market opportunities and/or avoid excessive risks.

Our portfolio management team follows a value-oriented top-down strategy for selecting assets, which is based on research and views from different banks, investment management firms, and independent research providers. Accordingly, our decisions are taken using inputs from top rated analysts and strategist within their fields without leaning towards any in-house opinions. The use of different sources of research has the advantage of reducing biases and ensures that only up to date information is considered.

In terms of fund selection it is noteworthy that we do not restrict our universe to large and well known providers. Indeed, we also diversify into smaller funds with managers that have a proven track record. In general, this will add value to a portfolio as such funds are usually less benchmark oriented and apply innovative strategies, which mostly only work well with relatively low volumes. To reduce any associated downside risk, we always take the time to meet the fund managers in person to completely understand their strategy before any investment is undertaken.

Tax and Regulatory Optimized Portfolio Management

We possess unique capabilities in tax and regulatory optimized portfolio management for clients domiciled in various countries. Accordingly, we have a strong focus on after-tax returns, which is why we take holding periods as well as withholding and stamp duty taxes into account.

We also offer this knowledge as a consulting service to other external asset managers and/or directly manage their clients’ complex portfolios.

Tailor-Made Asset Management Solutions

At Sonnenberg, we have team members with extensive experience in in advising, structuring, and managing the wealth of ultra-high net worth individuals and families, which was obtained at leading Swiss and international banks as well as at one of the largest independent multifamily offices in Europe.

Accordingly, we are able to offer very professional and competitive asset management solutions which are carefully tailored to the wishes and needs of every single client. These solutions are always developed bilaterally, taking into consideration numerous factors such as personal risk tolerance, investment horizons, tax domicile and wealth structure, and individual preferences and requirements.

In addition, it is noteworthy that we are free of any conflict of interest due to our independence from banks, investment companies and service providers. This allows us to offer a fully transparent fee structure and act purely in the interest of our clients. Accordingly, we are committed to purchase only the best available investment products at the best possible conditions.

Sonnenberg