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2.6

INVESTMENT PROCESS

THE INVESTMENT PROCESS, BASED ON THE INVESTOR’S NEEDS AND GOALS, REFLECTS HellasFin’s INVESTMENT PHILOSOPHY IN EACH INVESTOR’S PORTFOLIO

executives speaking
2.6.1.
INVESTMENT QUESTIONNAIRE

FILLING IN THE INVESTMENT QUESTIONNAIRE

In order to properly fill in the questionnaire, the Investor must provide the company with information on:

  • themselves and all the co-beneficiaries of their accounts
  • their financial situation
  • their investment experience and knowledge
  • their investment goals
  • their timeline for each goal
  • the risk they are willing to undertake
2.6.2.
PROFILE DEFINITION

THE INVESTMENT PROFILE IS CREATED BASED ON THE QUESTIONNAIRE

The Investment Profile is created Based on the information given in the questionnaire and the use of a special assessment tool.

2.6.3.
STRATEGY DEFINITION

INVESTMENT STRATEGY BASED ON THE QUESTIONNAIRE

After the creation of the investment profile and in cooperation with the Investor, the proposed Investment Strategy is defined.

2.6.4.
ASSET ALLOCATION

THE VALUE AND USE OF ASSET ALLOCATION

The key to effective portfolio management is the optimal allocation of capital to the various investment categories, such as steady income products, capital growth products, alternative products, deposits and currency market instruments.

The goal of asset allocation is the simultaneous maximization of return and minimization of risk. This is achieved by employing a combination of investment products which have low correlation between them.

The Investment Committee is responsible for deciding upon asset allocation, i.e. the setting of investment percentages for each category, according to developments and conditions in the various markets.

Each investment strategy corresponds to a specific Asset Allocation.

2.6.5.
SELECTION OF TITLES

"MATCHING CLIENTS WITH SUITABLE PRODUCTS" - MiFID II

The Investment Committee selects the financial instruments and products (Mutual Funds, ETFs, Bonds, Equities) and evaluates the target-market to be invested in, matching the Investor’s profile with suitable products.

Ranking criteria for financial instruments:

  • according to the Investor’s category (Private, Professional)
  • according to their knowledge and experience
  • according to the specific goal (Income, Capital Growth)
  • according to the product’s investment timeline
  • according to the desired reference currency
  • according to the product’s risk categorization (Volatility)
  • according to the credit assessment and maturity, for individual bonds
  • according to the MSCI categorization (Developed/Emerging/Frontier) for bonds and equities
2.6.6.
FORMULATION/RESTRUCTURING THE PORTFOLIO

FORMULATION THE INVESTMENT PORTFOLIO

The formulation of the portfolio is done following the definition of the Investor’s profile and strategy and according to the decisions of the Investment Committee.

Strictly abiding by the Investor’s contract limits, securities are chosen from the lists of eligible financial instruments and in percentages which are in accordance with those set by the Investment Committee.

Allocations to various categories is done on the basis of extensive geographical and sectoral dispersion, so that the optimal diversification of the portfolio is achieved.

2.6.7.
PORTFOLIO MONITORING

PORTFOLIO MONITORING AND RISK MANAGEMENT

The investment process is dynamic and the Investor’s portfolio is closely monitored according to the directives of the Investment Committee.

During the period of investment and depending on developments in global markets, where investment risks may appear, the Investor’s portfolio is adjusted in order to minimize potential risks.

The Risk Management process ensures the Investor’s protection from the risks of investing in financial instruments.

2.6.8.
RESULT ASSESSMENT

REGULAR RESULTS AND TOTAL RETURNS ASSESSMENT

The results of the portfolio and the total returns are assessed on a regular basis. Following that, the results are compared to the yield of the reference index and thus the outperformance or otherwise of the portfolio is assessed. Depending on the contemporary market conditions and according to the Investor’s wishes, correctional actions are explored and proposed, if needed, in order to properly restructure the portfolio.

2.6.9.
REGULAR INVESTOR UPDATE

REGULAR INVESTOR UPDATE ON THEIR INVESTMENT PROGRAMMES

The regular update on execution, transactions and the condition of the investment portfolio is done through presenting the transaction receipts and reports of the portfolio.

Frequent meetings with Investors offer them the opportunity to be updated on the course of their portfolio, the assessment results and to decide on potential restructuring proposals.