XENIX Strategy Portfolios

We are convinced that money and fund investments should not follow trends or hype. The composition of a portfolio with index funds should follow classic principles. Our exemplary portfolios enable you to proceed quickly and easily. All of our 'Classic Portfolios' follow a strategic approach, and investors from all over Europe can implement any of them using their existing brokerage accounts.

strong character and right diversification

Each portfolio should contain at least two components: one element for stability (cash and/or bonds), and one element for growth (stocks). These basic components should belong to the classic asset classes (cash, bonds, equities). By requiring this backbone for each XENIX portfolio, our funds' investment risks and returns are well balanced. The right distribution of risk and return is also dependent on the individual investor's profile, and on current market factors. Through our personal consultation, targeted fund selection, and continual monitoring of money and equity markets, we can find the right portfolio mix for you.

Stable risk return Profiles

Balancing risk and return starts with the selection of the right investment vehicle. Mutual funds are 100% bankruptcy protected. And if necessary, you may trade in your fund shares on any market day, thus converting them into liquidity. This awareness of risk and return is our guideline for selecting (index) funds for our strategy portfolios. Index funds can replicate whole markets or market segments. We annually adjust portfolios to match the initial asset allocation, thus providing for more portfolio stability.

At least two asset classes when concentrating on core markets

Each strategy portfolio starts with at least two complementary asset classes (money and stock market, or bond and stock market). Based on the investor's residence, we calculate the portfolios in Euro, US Dollars, Swiss Franks, British Pounds, or Swedish Kronas. For money, bond, and stock markets, we focus on the world's leading industrial nations, with an emphasis on western Europe countries. In our understanding, all other asset classes (real estate/open-end real estate funds, currency, commodities, etc.) do not belong in a classic strategy portfolio. These asset classes are suitable as tactical additions or as supplements for large scale investors.

Selection of indices and (index) funds

XENIX relies on ist own research when evaluating and selecting indices and the index funds that are based on them. Each index has different rules, and (index) funds con differ widely in fund management, listing and admission to trade, and fiscal treatment. XENIX continously observes the European fund market, especially index funds at the most important marketplaces for ETFs. The list of ETFs that we recommend is based on a qualitative price-performance ratio test, and it comprises 120 of the almost 800 ETFs offered in Europe

Annual adjustment of asset classes

The diversification into two or more asset classes is the biggest contributor to an investment's stability and performance. At XENIX, we make a point of adjusting the existing classic portfolio to the original asseet allocation at mid-year. This allows us to adjust the asset classes anti-cyclically to match the initial strategic goal. For example, if the equity fund holdings are at 60% on the reference date, they will be reduced to the strategic allotment of 50%. That way, the risk-and-return contribution of one asset class (and one fund) remains in accordance with your long-term goals. This annual adjustment is done on both levels: the asset classes, and the selected funds in each classic portfolio.