Asset allocation strategies.
An optimal balance between expected return and risk — across four model allocations.
An optimised investment portfolio.
How do we construct a portfolio that matches an investor's individual return target and risk tolerance?
Inputs
Equities, bonds, and alternative investments form the universe. Expected return, volatility, and pairwise correlations are estimated for every asset.
Model
Combinations are favoured where assets show low correlation, low volatility, and high expected return — selecting the most efficient mix at every return level.
Result
The model produces four reference allocations with indicative model return levels of approximately 6%, 8%, 10% and 12% per annum across corresponding risk profiles. Allocations are constructed using a mean-variance approach based on model assumptions for expected returns, volatilities, and asset correlations. These reference levels are not a forecast, promise, or guarantee of future performance.
Methodological note. Model assumptions for expected returns, volatilities, and asset correlations are based on forward-looking estimates, including weighted estimates from global banks. Assumptions are adjusted to reflect internal investment analysis and decisions of the ARTER Investment Committee. Allocations are constructed using a mean-variance approach. Calculations are presented on a gross-of-fees basis and do not account for taxation, transaction costs, custody charges, or other direct or indirect costs. Actual performance may differ materially from model calculations. Past performance is not a reliable indicator of future results.
Asset structure.
Each allocation — conservative, balanced, growth, and dynamic — comprises a defined mix of asset classes, allowing investors to choose the option best aligned with their preferences and return expectations.
Crypto (BTC) — exposure is implemented via US-listed and Swiss-listed Bitcoin Spot ETP/ETF; held in standard brokerage accounts at partner banks. ARTER does not provide direct custody of crypto assets and does not work with crypto-native exchanges.
Strategy descriptions.
| Strategy | Description |
|---|---|
| Allocation 01 Conservative | An allocation oriented towards lower volatility with a return reference of approximately 6% per annum — for investors prioritising portfolio resilience and capital preservation. |
| Allocation 02 Balanced | An allocation with a return reference of approximately 8% per annum at controlled volatility — a balance between growth and capital preservation. |
| Allocation 03 Growth | An allocation with a return reference of approximately 10% per annum at controlled volatility — focused on long-term capital appreciation. |
| Allocation 04 Dynamic | An allocation with a return reference of approximately 12% per annum — for investors with elevated volatility tolerance and a long-term horizon. |
Historical performance of the allocation strategies.
Benefits of a diversified allocation.
As an illustration, we compare two portfolios: a single-asset Select FI portfolio and a diversified portfolio consisting of 75% Select FI, 7% Dividend Equity, 14% Money Market FI, and 4% Global Equity. This structure keeps Select FI as the core exposure while adding a defensive cash component and a moderate allocation to global equities to improve the balance of return, volatility, and drawdowns.
Higher return.
A balanced portfolio delivers more return than a portfolio concentrated in a single asset class.
Comparable volatility.
The additional return is achieved with comparable volatility.
Resilience under stress.
Average and maximum drawdowns of a multi-asset portfolio tend to be smaller and shorter.
Single asset vs. diversified — historical comparison.
| Return, p.a. | Volatility, p.a. | Average drawdown | Maximum drawdown | |
|---|---|---|---|---|
| Select FI (EMUSTRUU Index) | … | … | … | … |
| Diversified portfolio | … | … | … | … |
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8001 Zürich, Switzerland
6900 Lugano, Switzerland
Disclaimer
This document and the information contained herein are provided exclusively for informational purposes and do not constitute investment-analysis material, a public offer, advertisement, or a public solicitation to buy or sell any securities or other financial instruments in any jurisdiction. This document is purely promotional material and is provided for information purposes only. It does not constitute investment advice or a personal recommendation within the meaning of Art. 3 lit. c para. 4 FinSA. ARTER Asset Management AG is not making any investment recommendations with this document. ARTER Asset Management AG (Switzerland) reserves the right to change the range of products and services, including rates, at any time without prior notice; informational content and opinions contained in this material may also be changed. Past performance is no indicator of future performance. Asset classes, asset distribution, and investment instruments are presented solely for illustrative purposes.
Based on this document, no investment decisions related to ARTER Asset Management AG should be made. All investments are associated with certain risks, and these risks can be significant. Markets for individual securities may be illiquid, and market illiquidity can hinder the valuation of investments and the identification of risks. The value of some investments may suddenly and sharply fall, and upon their realization, the investor may receive less than invested. Clients should discuss with their advisor at ARTER Asset Management AG the nature of each investment and carefully consider whether a particular investment is suitable in their situation. The tax regime depends on the personal circumstances of the client and may change in the future. ARTER Asset Management AG does not provide legal or tax consultations and makes no representations regarding the taxation of assets or investment income derived therefrom — neither generally nor in relation to the specific circumstances and needs of the client. Before making any investments, clients should (as they deem necessary) consult independent tax specialists regarding the suitability of specific products, assets, or investment instruments.
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