EAP_SS22_FLcapital

The aim of FL Capital is to generate a moderate return with low price fluctuations. We want to keep the fluctuations in the value of the portfolio as low as possible, however we are prepared to accept smaller price fluctuations if we are compensated by higher expected average returns. The conservatively oriented investment strategy with the focus in Europe/North America has the following weighting of asset classes: Government bond ETFs: 40% Corporate bond ETFs: 20% Commodity ETFs: 5% Real Estate ETFs: 5% Equity ETFs: 20% Equities: 10% Bond ETFs are included in this portfolio as a hedging component. Investments are mainly made in government and corporate bonds with investment grade rating. We focus on diversified corporate bonds, which are invested in different companies from various sectors. A small part of our portfolio will be allocated in a diversified basket of commodity goods due to their historically negative correlation to share prices. Furthermore, they make sense as a portfolio addition in the event of major crises or high inflation. Real estate ETFs offer a good way to diversify the portfolio and therefore will be included in our portfolio. We also invest in high market cap equity ETFs, which track stock indexes in Europe and North America. This allows us to gain exposure to a basket of equities without purchasing individual stocks. However, we will be on the lookout for undervalued mid- and high market cap companies with strong fundamentals and using appropriate multiples like Price-to-Book and Price-to-Earnings Ratio to assess the stocks value. The investment may ultimately deviate from the defined weighting, especially in times of crisis, but not by more than 15%. In the event of a major deviation from the strategy, an attempt is made to shape the portfolio to the target structure by making precise adjustments.