Alternative Investment Solutions

What if you could make an investment that was in no way tied to what the stock market will do in the next 10 years? Such an investment could do well in the face of extended declines in the stock market, and do well if there is a market recovery. The investment could also perform poorly in all three cases, but such an investment is, by definition, lowly correlated with the stock market. The ability to achieve returns independent of stock market performance is the main benefit of Swiss ATS Portfolios as an alternative investment.

Benefits

Returns independent of Stock Market Performance.
Reduction of risk via portfolio diversification.
Low correlation to traditional investments such as stocks, real-estate, and bonds.

The alternative investment solutions Swiss International offers focus on such lowly correlated investments. According to Dr. Harry M. Markowitz, the Nobel prize-winning economist and father of modern portfolio theory, portfolios with decreased volatility and increased performance can be created by diversifying among asset categories with low to negative correlation, such as stocks and commodities.
Subscribers to this theory believe an investment portfolio utilizing the futures markets through trading systems and managed futures stands to perform better, with lower overall risk, with the addition of alternative investments.

Risk VS Reward

A study published by the Chicago Mercantile Exchange concluded that portfolios with as much as 20% of assets in managed futures yielded up to 50% more with comparable risk than portfolios of stocks and bonds alone. The enclosed graph, "Impact of Incremental Additions of Managed Futures to the Traditional Portfolio," provided by the Chicago Board of Trade, shows that a traditional portfolio (55% stocks, 45% bonds, and 0% managed futures) presents an investor with the greatest risk and lowest returns. However, a portfolio comprising 45% stocks, 35% bonds, and 20% managed futures offers an investor the greatest returns and least amount of risk.

Portfolio Approach

System trading involves the constant risk that any one system may not perform as expected in a given period of time due to the constantly changing market conditions and volatility. The trader that combines several systems into one trading portfolio has added the element of diversification, greatly reducing his open risk. The end result for the trader can be a much smoother equity curve, as unexpected losses in one system may be offset by profits in another. Going into each system with a positive expectation, Swiss International’s opinion is this smoother equity curve should slope upwards over an extended period of time.

Portfolio Management

Portfolio management has become a very large industry, with no sign of that growth slowing. It has also become a global industry, with the major players in the industry now operating on a global basis. The range of institutions involved, or linked, with Portfolio management has grown correspondingly, with the consequence that Portfolio management has become a central element within the overall financial services industry. In turn, an appreciation of the portfolio management industry has become an essential component of Swiss International.

Swiss International Approach

We at Swiss International Financial Services Thrive to Research and Develop new and innovative financial products and services that will best suit our clients and provides them with a decent return on their Investments with the lowest risk possible, because of our dedication to our clients. Researchers have proved over the years that the best way to increase your returns while lowering your risks in the markets is to “Diversify”; due to this reason “Swiss-ATS Portfolios” were created.