Investment Strategy

Important ways to retain the value of capital are: emphasising the importance of liquid and conservatively constructed investment portfolios, keeping cost low and be vigilant for irreparable losses in the portfolio of clients. The investment philosophy of Laaken is that risk and cost efficient portfolios can be realised by investing in individual stocks, bonds and alternative investments with a long term view.

With this view the company aims to add value in all asset classes. In equity worldwide, solid investments are selected of companies that have a strong balance sheet (low debt), good growth expectations, reliable management and acceptable valuations. With the strong fluctuation in the world economy these businesses are the ones that have the flexibility to gain strength in economic crises and stay ahead of the competition.

The bond allocation in the portfolio also consists of direct individual investments including government, corporate, variable rate and convertible bonds. This makes it possible to generate returns in an environment of low interest without adding too large risks. In case investment funds are used for investing in bonds a large part of the return is used to cover the costs, especially in the current low interest environment. Holding a part of the portfolio in cash can be a possibility here to make use of the interest that Dutch custody banks still offer.

Aside from stocks and bonds the portfolios are invested in listed real estate, listed private equity management companies and precious metals. This diversification adds to the ability to attain solid long term returns without compromising on liquidity. These alternative investment are daily tradable and complementary to stocks and bonds.

Derivatives are solely used to hedge specific risks in the portfolios. It is possible to acquire put options to insure against strong market corrections. Forward currency contracts van be used to reduce or eliminate currency risks.

The direct investment in stocks and bonds avoids accumulation of costs that many asset management clients face because their capital is invested indirectly through passive and active funds. Avoiding high cost in the current low interest environment has become more important. Passive investment funds are only added to the portfolios for investments in precious metals and when direct investment is not possible in a certain (emerging) market.