High-quality service, thorough analysis, tailored products, and a trust-based relationship that grows stronger over time: these are the characteristics in place since 1936 which enable Ersel to distinguish itself and excel in the Italian asset management sector.
For those who wish to delegate their investment decisions, Ersel offers the guarantee of a professional management service which is tailored to the client’s individual needs. An asset allocation and management strategy which is based not only on market knowledge, but also on the ability to analyse the client’s individual objectives and risk profile, and so propose the most appropriate and efficient management strategy under a specific mandate.
Unlike other Italian operators, Ersel has never set up a network to promote and sell its own products and services, but has relied solely on in-house professional staff and has thus managed to maintain direct and high-level contact with clients.
The management service is characterised by the rigorous investment process, the broad diversification of the product range and the thorough knowledge of the chosen instruments, together with transparency and rapidity in providing detailed and tailored information. Ersel moreover offers private insurance services through leading companies from Italy and EU.
The investment process aims to create value in the medium to long term through the dynamic management of investments and the pursuit of a positive contribution of the chosen instruments, which may be actively managed Ersel funds, third-party funds, ETFs, securities or alternative instruments. Ersel has always based its investments on the principle of active management that seeks outstanding performance in relation to the relevant financial market context.
Financial market analysis
The investment process is based on macro and micro-economic analyses that produce forecasts of the relevant variables and estimates of the risk premium on the various financial assets. The analyses are carried out using in-house models which highlight historic relations between the economic and financial variables, supported by dialogue with external counterparts and specialist research by the leading investment houses.
The most important macroeconomic variables are forecast with the support of proprietary models which exploit the predictive ability of some sentiment and real indicators. The forecast scenario is the basis on which yield prospects for the main financial variables are calculated, again with the use of proprietary models.
Micro-analysis focuses on estimates of companies’ profitability and on the trend in analysts’ bottom-up consensus, on which a critical assessment is carried out, also on the basis of the top-down variables. Analysis of companies’ profitability leads to analysis of valuations in terms of both past and future valuations. The analyses on valuations are integrated with those on trends, positioning and investor sentiment.
Individual portfolios are constructed with reference to their objectives and considering the current financial market conditions, in keeping with the investment policies and the management strategy for the portfolio line to which they belong. Short-term, tactical adjustments are periodically undertaken and can be caused by changes in the market enviroment, changed yield forecasts or differing investment correlations. Checking portfolio performance by constant monitoring of yields and risk management is considered by Ersel as a strategic activity and is one of its strengths. The instruments used enable rapid changes to the portfolio in relation to changing client needs or following changes in financial market scenarios.
Risk control is entrusted to a dedicated structure consisting of a team of specialists which uses sophisticated risk management techniques. It is a constant support to the investment process and involves all the products in the Ersel Group, traditional UCIs, speculative UCIs, model portfolios for asset management and individual tailored management.
The risk control work is carried out together with the control on operational limits realised through a set of rules which enable the issuer, liquidity, market and concentration risks to be reduced.
Numerous tests are carried out ex ante by quantifying the VAR and the tracking error of the managed portfolios and undertaking precise ex post risk/reward and performance attribution analysis.
Ersel supplements the benefits of mutual funds with the flexibility of management applied to securities, in order to achieve the proper portfolio balance. It proposes investment lines characterised by different management approaches and different risk and return profiles:
Multi-asset lines, which structure choices on different financial assets, in turn separated into:
Single asset class lines, which focus investments on a single financial asset and which include:
Total return lines, characterised by the objective of a positive result for the portfolio managed, more disconnected from the trend in the markets, which privilege capital protection by avoiding excessive volatility.
Ersel also offers the possibility of accessing personalised management, with the composition of the reference benchmark and any investment limits agreed with the customer; a tailored portfolio which meets the specific investment needs of the customer. The asset allocation is subject to continuous checking to determine the tactical asset allocation that makes it possible to seize the additional opportunities presented by the market.
A team of specialists guarantees the professionalism developed over decades of business in the field and close integration with the individual fund managers makes it possible to capitalise on all the specific skills.
Quality and depth of analysis coupled with the transparency and timeliness of information characterise the service, with detailed, customised documentation that is also available via the website.