News flash: Investment policy in a low interest rate environment and with volatility in equities

In today's low interest rate environment in Europe and in the United States, but in different monetary situations, facing in particular more volatility in European equities, we favor:

On the bond component: a low duration in Europe (deflation moves away, hence a potential rise in interest rates at the long end) as well as in the US (normalization of monetary policy by the Fed with the first increases in short rates expected this year). A preference for corporate bonds over government bonds (risk premiums outweigh the risks of default). We manage duration and curve positioning actively.

Concerning equities, we are overweight versus bonds, despite high valuations. Given the large liquidity flows in the markets, due to accomodative monetary policies, risk premiums are less relevant, but nevertheless, still favorable to equities.

From a geographical point of view, we are neutral on Europe and on emerging markets and overweight on the United States market. Speculations about the exit of Greece from the euro area scramble visibility on growth. However, the euro area shows a positive dynamics in economic activity, due to several factors: recovery in credits, drop in oil prices, low interest rates (QE) and weak euro.

CMB Wealth Management Limited

Compagnie Monegasque de Banque is pleased to announce the opening of its London subsidiary, CMB Wealth Management Ltd, that allows it to broaden its geographical presence, and to be closer to UK based clients. CMB is a leading private bank in Monaco, and a member of the Mediobanca Group, the pre-eminent Italian Investment Bank.

CMB Wealth Management Ltd (“CMB London”) is authorised by the UK Regulator (FCA) to advise on investments and mortgages, and thus offers a large range of products and services. Click here for full details.

News flash : Launch of new compartments of CMB Global Lux Sicav

The Luxembourg financial supervisory authority (CSSF) has granted us authorization for four new compartments within our multi compartment Sicav, CMB Global Lux, to be launched alongside with the existing compartment.

Four funds will thus be available for investment, one in emerging market debt and three replicating already existing funds in our range of funds under Monaco law (two bond strategies : Monaco Expansion Euro and Monaco Corporate Bond Euro, and one: equity strategy through the High Dividend Yield equity fund).

The investments of the emerging markets debts fund will be entrusted to the company "Neuberger-Berman", specialist over many years in this segment. Investments will be made in both government and corporate debt, and will be balanced between local currencies and the US dollar.

The primary objective of the launch of these four new compartments, is to allow our clients access to investment products complying with European directives (UCITS). Then, in a second phase, we envisage to develop external marketing, through distribution agreements to be established.

Contact details:
CMB Wealth Mangement Limited
33 Grosvenor Place,
Belgravia
SW1X 7HY

Email: cmblondon@cmb.mc
Phone: +44 (0) 203 036 9595

CMB Wealth Management Ltd is authorised and regulated by the FCA - registration number: 662929.