Among the funds offered by CMG, a distinction should be made between mutual funds and investment funds. Mutual funds invest in transferable securities and comply with strict rules in terms of risk spreading and liquidity, whereas investment funds can invest in assets that are not necessarily transferable securities and may have specific characteristics that may result in restricting subscription to such funds to eligible or professional investors. Investors are advised to read the rules and simplified prospectus of any fund they may wish to subscribe to.
Mutual funds, investment funds, eligible investors and professional investors are defined in the Monegasque legislation set forth in Law 1.339 of 7 September 2007 and Sovereign Order 1.285 of 10 September 2007 relating to mutual funds and investment funds.
Funds offer advantages that can be generically described as follows:
- Diversification of investments
- Liquidity with obligation to redeem on request according to the frequency stipulated in the legal documentation
- Access to markets where investors would bear higher costs in the case of direct access (benefit of size effect) or that they would be unable to access directly (which is the case, in particular, of some emerging markets)
- Professional management
- Daily monitoring of investments
In particular, CMB clients can benefit from the closeness of the fund managers in the case of the funds managed from Monaco, which ensures a ready supply of top-quality information.
Depending on the client’s investment objectives, CMB’s selection of funds includes:
- money market funds for short-term investments
- bond and mixed funds for medium-term investments
- equity and convertible bond funds for long-term investments, including specialised funds centred on an investment theme (e.g. the environment) or a geographic area (e.g. Asia, emerging countries), and decorrelated funds (funds of hedge funds)
CMB has put in place a policy of seeking optimum performance, resulting in the selection of confirmed external fund managers with impeccable track records in the categories concerned, to whom CMG has delegated the financial management of its funds.
In this way, the investment decisions are taken by professional managers who are directly in contact with the markets concerned and then executed through CMB, which can thus directly monitor the management carried out by the delegated financial manager, particularly with regard to investment risks.
Currently, the financial management of the following funds has been delegated:
- Monaction Asie at Barings Securities
- Monaction Emerging Markets at Vontobel Asset Management., Zürich
- Monaction Europe at Invesco, Francfort
- Monaction USA at Alliance Bernstein, New-York
- Monaco Convertible at Dynasty, Luxembourg
- Monaco Horizon 2018 at OFI Asset Management, Paris
- Monaco Horizon 2021 at Neuberger Berman
- Sicav Dette Emergente at Neuberger Berman