ING - Private Banking BHF
20 Million Dollar Advice
Investing with high growth strategies assumes that clients provide for their current and medium term expenditure through financial sources not involved in the strategies. The following proposal therefore targets the free part of the wealth a euro-based private individual can invest with a long term investment horizon (at least five years).
Strong capital growth ? particularly after the deduction of inflation ? calls for exposure to equity related instruments. The majority of money should therefore be invested in this market segment. According to the structure of investors? requirements as well as the movements of financial market segments, a three layer approach should be used to ensure the individuality and flexibility required.
The first layer aims to provide general market exposure to high liquity and high quality investments which is the key requirement of a portfolio structure. The whole layer should always be weighted between 60% and 80% of the total portfolio. For the client profile under consideration this leads to a portion of 60% in international large cap equities and 20% in euro denominated bonds ? including cash - with the highest quality available at present. Therefore 80% of the total portfolio would be invested in these asset classes now.