Illiquid assets

Investment return, risk and liquidity

The trade-off between investment return, risk and liquidity has received much attention in modern portfolio theory and it rightfully plays an important role in every investment decision. Like risk and return, the liquidity of an investment asset is an uncertain parameter that changes in time. Regular evaluation of the “liquidability” of investment assets is important to ensure proper measurement of the liquidity of a portfolio. Even assets that are considered highly liquid can become illiquid overnight, due to political events for example. Any change in liquidity will also necessitate a reevaluation of risk exposure.

Use opportunities in a controlled way

It is particularly tempting to cast aside prudence when – as in today's day and age – the prospective returns of many liquid assets are minimal, or even negative in some cases. That temptation must, of course, be resisted. But investing moderately and prudently in illiquid assets, in addition to investments in liquid assets, can allow investors to pocket an “illiquidity premium” even with a conservative approach. Often just a minor reduction in liquidity can lead to a notable improvement in overall performance.

We provide access to various illiquid asset classes that we consider meaningful bolt-on elements within a liquid investment portfolio, such as

  • Private Debt (non-listed loans)
  • Real Estate
  • Private Equity & Venture Capital
  • Hedge Funds

News

Corporate News / 27.02.2018

All figures for Bellevue Group as of December 31, 2017.

Corporate News / 27.02.2018

Media release of Bellevue Group regarding the annual result 2017.

Corporate News / 23.01.2018

  Bellevue Group posts expected operating profit of about CHF 29 million, expected net pro...

Corporate News / 30.10.2017

Bellevue Group will bear the costs incurred for investment research in the wake of MiFID II.

Corporate News / 28.07.2017

Half-year report of Bellevue Group as at June 30, 2017.