Genuine client focus
Our success depends on our client’s financial advantage and as such we have made it our corporate mission. Based on the privilege to be entrusted with the management of the wealth of others, arises the personal commitment of all LOYS Partners to handle the entrusted funds most responsibly. The client’s assets are treated like the partner's own, as all partners are invested in the LOYS funds. Our aim is to achieve above average returns while providing superior customer service. In order to realize these objectives we can draw on the established capital market expertise, personal integrity and entrepreneurial approach of all partners at LOYS. Our actions are guided by a strong commitment to ethical principles, entrpreneurial involvement of our partners, fairness in dealing with institutional investors, investment expertise, as well as common sense.
Our independence is one of the most important factors that differentiate us from many competitors. We are not subject to any external business affiliations. Consequently all our actions are entirely in our clients’ best interest. It also implies that we are unaffected by the conflicts of interest, that frequently occur in the capital markets. This autonomy allows us to invest our clients’ funds consistently in the way our fund managers deem optimal.
Institutions: our clients and partners
We exclusively provide services to institutional investors. Our clients include pensions funds, banks, funds of funds, family offices, as well as asset management companies affiliated with big industrial enterprises. In order to avoid possible conflicts of interest with distributional partners, we refer all private investors to financial institutions which offer our products. Naturally we continue to manage our existing private clients’ funds.
Personal responsibility and entrepreneurship
We are entrepreneurs and the way we go about business reflects this. Our clients should expect a higher level of spontaneity and personal commitment from LOYS than what is usually provided by larger corporations, which are not manager-owned. Our company structure provides the advantage of a fast and straightforward decision-making process. It is imperative that the responsibility with regard to an investment decision lies with one individual rather than an advisory board, group or committee. LOYS puts an emphasis on a lean and efficient business structure. It means that every single client can communicate directly with the LOYS partners, an aspect we and our existing customers value deeply.
Driven by conviction
We are truly committed to our work, which is substantiated by the fact that both – the LOYS AG and all LOYS Partners - invest their own money in LOYS funds. Doing so we prove, once more, that we share our clients’ financial interests. Evidently we deem it desirable for the distributors of our products to follow this example.
In asset management the investment returns greatly depend on the individual fund manager. Owing to this insight we reject the concept of faceless investment factories, for they produce a confusing multitude of narrowly focused funds, typically of average quality with high fees. In contrast, we only offer services of which we have profound knowledge and a complete understanding. Fundamental equity analysis is our edge. In areas which fall outside our core competencies we prefer to draw on the expertise of the best provider in the market.
Clear investment philosophy, active management
We employ an active management approach to investment, i.e. we choose specific investments irrespective of any index constraints. Furthermore, we give due consideration to economic opportunities and risk factors before deciding on the weighting of selected individual titles in our portfolio. We invest with a conservative mindset. Therefore the objective of preserving existing capital always overrides concerns over occasionally missing out on an investment opportunity. We believe that, over time, we can generate superior returns by investing in under-valued securities over longer stock-adequate periods, while maintaining economic diversification. The investment principles of Graham and Dodd constitute the intellectual foundation of the LOYS investment philosophy.
Common sense prevails over statistical approaches
Our conservative mindset cautions us to be skeptic about various aspects of modern portfolio theory. Thus our business analyses rely more on common sense and put less emphasis on statistical evaluations. As genuine investors, which ought to be seen in contrast to short-term traders, we do not focus on the analysis of statistical risk factors such as volatility, value at risk or beta. Instead, we believe that the risk of a stock investment primarily depends on the company itself in the context of its business segment, its market position, its management and financial statements.