Management mandates

CMB offers various categories of mandates, as follows:

  • Mandat de Gestion en Valeurs Mobilières (GVM)

This type of mandate has a policy of investment in direct lines, in equities and/or bonds, with foreign exchange risk managed according to the client’s reference currency. The level of risk accepted by the client and his investment objectives (investment horizon, expected return) result in the definition of several different profiles, according to their weightings in equities.

  • Mandat Plus

Under the ‘Mandat Plus’ portfolio management mandate, clients authorise the Bank to allocate part of the capital to investments in structured products, financial derivatives and hedge funds. The ‘Mandat Plus’ mandate is managed with an objective of positive absolute return and market volatility risk limits. This discretionary mandate provides for dynamic wealth management and is carried out mainly through direct investments in transferable securities and forward financial instruments.

  • Mandat Allocation Evolutive

Under this type of mandate, investments are divided into two categories of assets. The first consists of fixed income products and bonds: these concern securities and financial instruments with low risk of loss of capital; traditionally these assets are known as ‘risk-free’. The second category of assets, which carries a permanent risk of volatility and traditionally contains ‘risky assets’, concerns the equity markets, forward financial instruments, with no restrictions on the underlyings, and/or units of hedge funds. This type of mandate is managed using a technique of reweighting between risky and risk-free assets, designed to limit the maximum potential loss over one year.

  • Mandat de gestion par organismes de placement collectifs en valeurs mobilières (GPF)

This type of mandate provides investments through mutual funds or UCITS. The value of this type of investment is the wide diversification of exposure it procures, as the funds are widely spread across different securities. Foreign exchange risk is managed according to the client’s reference currency. The level of risk accepted by the client and his investment objectives (investment horizon, expected return) result in the definition of several different profiles.