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Discretionary management, to combine peace of mind with an active search for performance
Degroof Petercam

Discretionary management, to combine peace of mind with an active search for performance

Investing involves risk. Just the fear of having assets devalued in a financial shock can be distressing for many investors.
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Peace of mind can be restored by relying on a discretionary management service featuring a team that actively monitors clients' investments.

In March 2020, when the Covid-19 pandemic suddenly paralysed the world, the value of financial assets plummeted. Such sudden and unpredictable shocks are, of course, feared by all investors. In just a few days, or even hours, one can see a part of one's carefully accumulated wealth vanish, accompanied with a feeling of helplessness in the face of these events. “To gain peace of mind in an uncertain environment, we see investors turning more to discretionary management services, such as the one we offer," explains Jean-François Genicot, Head of Investments Management at Banque Degroof Petercam Luxembourg. These investors choose to delegate the management of their portfolio to our team, both to gain peace of mind and in the hope of achieving quality performance over the long term.

Active search for returns

The role of a discretionary management service is to take timely decisions in the client's best interests. “As well as being in full compliance with financial regulations, time is taken to understand each client's unique situation, their expectations, their financial position and their capacity to invest over the long term," noted Mr Genicot. “Equipped with this knowledge and with a clear mandate from the client, the manager will build an asset portfolio, and then managing and rebalancing it in a pro-active manner in search of strong long-term performance.”

Permanent expert management

Each client is assigned a partner who is in charge of managing their assets and on whom they can rely. The manager is available at any time to answer questions about the investment strategy and market outlook, to offer advice and reassurance. "Thinking back to March 2020, many of our clients called to express their worries. Although it was difficult to anticipate precisely what would happen, the challenge in these situations is always to avoid panic, and to calmly reorganise the portfolio in readiness for the coming market rebound," Mr Genicot explained. “With discretionary management, you can be sure that there is always someone in charge, capable of reacting both when the markets are facing exceptional challenges and in calmer times.”

 At Degroof Petercam Luxembourg, our management team is there to look after our clients' portfolios, relying on the work of an investment committee that meets weekly in Luxembourg. Taking into account macro trends and the situation in specific markets and asset classes, these experts are able to decide when to make changes to ensure that assets are preserved and that the highest level of performance is achieved.

Investments integrating ESG criteria

Discretionary management at Banque Degroof Petercam Luxembourg already meets the new aspirations of its clients in terms of responsible investment.  Today, our mandate falls within the framework of the SFDR regulation and meets the requirements defined in article 8, relating to management that takes account of environmental, social and governance (ESG) criteria," explains the Head of Investments Management. This means from the outset that certain activities are excluded from the portfolios we implement. In addition, in each category of activities, we seek to make a positive selection, i.e. to identify the best assets in their class in terms of ESG. In the same vein, the bank can consider with each client solutions to go further in terms of responsible investment through impact funds, whose purpose is to contribute to social or environmental objectives, or the implementation of a philanthropic project.

In addition to these discretionary management services, Banque Degroof Petercam supports investors by offering other types of mandates, such as proactive investment advice, one-off advice, or the execution of investment orders.

Questions about your responsible management of your assets? Contact Jean-François Genicot, Head of Investments Management:

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