Our Investment Approach
Fixed Income Markets
Our expertise lies in investing into debt and capital instruments issued by large cap banks and global insurance companies - specifically CoCos, AT1s, Tier 1 and 2 bonds. These subordinated bonds of global banks and insurers offer superior returns on a risk-reward basis compared with other fixed income areas (e.g. corporates, high yield, government bonds).
By investing up to 50% of clients‘ managed assets into high quality issuers with strong balance sheets (primarily global players and systemically important institutions with a minimum A- rating on senior level) we seek attractive absolute returns through high yields and capital appreciation.
Inspite of the geopolitical risks and sanctions imposed on the Russian economy, we still invest certain part of clients‘ assets into prime Russian corporate and financial borrowers with strong balance sheets, resilient profitability and government backing. To supplement the Emerging Markets exposure we also invest into senior debt of top issuers from growing economies such as China and India.
We advise clients to hold some exposure to gold (5-15% of their portfolios – depending on their preference). To enhance returns ALVE employs an option writing strategy by selling out-of-the-money PUTS and CALLs (generating ~8-10% annual returns).