In today's increasingly complex investment universe, the number and variety of investment products are continuously growing and they are getting more technical. In this sophisticated investment environment, few clients may have enough information, knowledge and experience to handle their investments on their own. A client's understanding of risk and his return expectations in these circumstances may not always be in line with the market realities. Consequently, advice from a professional investment manager may become highly valuable. At BCP, we guide our clients in this risky investment world. We endeavor to meet their objectives and ensure that their portfolios are properly tailored to meet their expectations. In order to achieve this, we determine, after in-depth discussions with our clients, their investment objectives and risk tolerance. Once these basic parameters are clearly determined, we structure and manage an investment portfolio suiting the objectives of our clients.
Within the framework of our advisory services, our highly experienced investment advisors provide our clients with all the necessary information on the markets, including up-to-date news, company figures, researches and analyses, helping our customers make their own investment decisions and take actions as and when they like. Having access to these extensive information sources enables BCP's private banking clients to anticipate and benefit from sudden changes on the markets and thus optimize their investments. These services include professional advice, custodian services and a rapid execution of transactions carried out in accordance with our customers' instructions.
With the collaboration of our dedicated Treasury team who are very active in the foreign exchange markets, we are able to provide our customers highly professional advice in terms of currency management. We offer various hedging techniques including swap and forward transactions, which are commonly utilized techniques to protect our client portfolios from undesirable risks linked to currency fluctuations. Moreover, our broad range of counterparts enable us to propose to our clients the most competitive quotations for all convertible currencies both in spot and forward transactions.
BCP offers to its customers short-term cash management services by proposing fiduciary deposits, which are exempt from withholding tax. The time period of these deposits may range from 48 hours to 12 months. We place these deposits either with BCP's own branch in Luxembourg or with our carefully selected correspondent banks. By placing within the BCP network, our clients enjoy very competitive interest rates and more flexibility as to currency types and periods while benefiting from the long-standing cash management experience of a well-reputed establishment.
Long-term investors in the equity, fixed income and money markets may often face short-term liquidity problems and find themselves in a position where they have to sell all or part of their assets to generate cash. We are always prepared to assist our clients with cash facilities to spare them from selling their assets at a loss or missing further growth opportunities. We provide short-term loans secured by their investment portfolio, which can then pursue its growth uninterrupted. We even go a step further and also provide financing to those clients who wish to borrow funds to increase the size of their portfolio (leveraging) to benefit from any positive market developments. Our assistance to our clients goes beyond the traditional Lombard loan financing which consists in providing liquidity secured by assets traded only in large international markets. Our expertise in the emerging markets enables us also to provide financing to our clients investing in these markets, especially in the fixed income sector. Our competitive pricing and our ability to guide our clients in these volatile markets are BCP's added value allowing our private banking clients to achieve above average returns and mitigate the related risks.
While most people pay great attention to managing and preserving their assets during their lifetime, they might omit preparing an appropriate structure for the management of their assets in case they become unable to continue doing it themselves. This also applies to the distribution of these assets or their revenues when they pass away. We assist our clients in determining and establishing the most appropriate structures to prepare for these circumstances, in conformity with their wishes. Usually such structures include the establishment of trusts or foundations, which we are happy to implement for the account of our clients. These investment structures enable our clients to ensure that their assets are managed according to their wishes if they are unable to do it themselves due to their weak health or lengthy absence. Should the client pass away, these structures ensure that the client's assets either continue to be actively managed, or that their revenues or the assets themselves are distributed to those beneficiaries designated by the client, in line with his wishes. These structures constitute the best way of avoiding disputes between the family members related to inheritance. They also offer many other benefits including tax savings.
Professional and competent advice from a trusted banker could be a highly valuable help for clients while conducting their business activities. We assist our clients to structure all financial aspects related to their specific business. This assistance covers a large spectrum such as providing guidance for financial risk assessment, cost efficiency and tax planning. In order to do so, we conduct detailed consultations with our clients and thoroughly study their needs taking into account the local and international constraints. Following this detailed consultation, we are able to propose, structure and carry out on behalf of our clients, those transactions that are agreed to be the most appropriate ones to achieve the expected objectives. These transactions are handled with utmost discretion keeping in mind the best interests of our clients.
In case our clients wish to assume the management of their portfolios themselves, or use the services of a third party, we are prepared to act only as an agent. In this capacity, we provide rapid and efficient execution of our clients', or their designated portfolio managers' instructions, ensure the timely and precise booking of their transactions as well as provide our safe custody services for the safekeeping of their securities. Furthermore, safe deposit boxes are available for our customers' valuables. |