LGT Shortfall Approach: maximum return, little risk
The LGT Shortfall Approach is our answer to our overriding principle of wealth preservation. We use it in designing our strategy portfolios, which as ‘total return’ products seek to achieve a positive performance irrespective of the market developments.
- In the case of our strategy portfolios, the approach defines the probability that the invested capital will be above the starting value at the end of the investment horizon.
- For tailored institutional mandates, the approach makes it possible to define the probability that the invested capital will be above the targeted return at the end of the investment horizon.
- Correspondingly, we seek to find a portfolio solution that enables a maximum return at a moderate downside risk over the time horizon chosen by the client.
The key advantage of the LGT Shortfall Approach lies in the possibility of investing anti-cyclically and thus achieving gains irrespective of the market trend. As part of the regular fine-tuning of the portfolio, portfolio elements with performance gains are reduced and additional investments made in those with below-average performance.
Unlike traditional, pro-cyclical capital protection products, the LGT Shortfall Approach offers cost-effective management of the downside risk over the respective period.
The timeframe over which losses may occur is the decisive factor here, and not the size of the loss.
Investments offer you opportunities, but also involve risks. Your investment profile is the decisive factor.
Please discuss these possibilities with your client advisor at LGT.
Your contact
- LGT Capital Management
- Tel: +41 55 415 9275