Strategy and ideas

Investment strategy

Today, in a context of low interest rates both in Europe and in the United States, but with a different monetary situation and with increasing Equity volatility (in particular in Europe), we favor:

On the bond side:

On the Equity side:

Investment ideas

In the current money market environment, with yield levels close to the zero lower-bound, CMB has put into place an investment product named Dual Currency Deposit, which targets international clients that are used to managing their portfolios in a variety of currencies, so as to propose investment solutions with more attractive yields for a given level of risk. Given the exclusivity of this product, reserved for clients aware of the risks involved, the minimum subscription amount has been fixed at 400.000 EUR or equivalent in the available currencies, namely USD-CHF-GBP-JPY, for a time-span of three to six months.

The Dual Currency Deposit is a term deposit whose reimbursement circumstances are conditioned by the evolution of an exchange rate between two currencies. In fact the reimbursement occurs at a predefined maturity either in the investment currency or in the predetermined alternative currency depending on the evolution of the exchange rate between the chosen currencies. If the exchange rate reaches or surpasses the previously defined threshold for the conversion’s trigger, and consequently, if the alternative currency has weakened with respect to the investment currency at maturity, the CMB will proceed to the reimbursement of the capital invested and the coupon in the alternative currency by applying the conversion rate. If the exchange rate has not reached or surpassed the conversion rate at maturity, the CMB will proceed to the reimbursement of the capital invested and the coupon in the investment currency.

The international clients targeted by this product can therefore enjoy higher yields with respect to current money market conditions, provided the determined alternative currency does not weaken beyond the intended conversion rate.

A detailed fact sheet can be consulted under this link: Fact Sheet Dual Currency Note



This fund, the Monaco Convertible Bond Europe, enables investors to derive a participation in any rise in the European equity markets via the convertible option embedded in such bonds, while still enjoying downside protection, in the cas of equity weakness, via the bond element.