Novum Capital Partners: Investment monitoring Novum Capital Partners
Professional asset allocation strategy only works with systematic monitoring. It is no longer just a matter of measuring performance, but of identifying market changes and structural shifts at an early stage.
Novum Partners has been observing a change in the way wealthy families monitor their investments for years. Whereas quarterly reports used to suffice, clients now want real-time information and more detailed analyses. The multifamily office has responded by adapting its monitoring systems accordingly. With over 5 billion Swiss francs under management, the Geneva-based company has a sufficient database for meaningful market observations.
Modern monitoring goes beyond performance
Anyone who still believes that investment monitoring is just a matter of comparing actual and target figures has overlooked something important. Markets have changed. They are faster, more volatile and more interconnected. What worked yesterday may be obsolete tomorrow. Monitoring methods must therefore adapt accordingly.
Family office services often involve assets that are to be preserved for generations. It is not enough to focus on the next twelve months. Long-term trends must be identified before they become problems. Or missed opportunities.
Early warning systems for structural changes
Let’s take an example from the recent past. For decades, energy stocks were considered solid dividend payers. Then came the energy transition. Suddenly, safe havens became volatile speculative investments. Those who recognised this early were able to reallocate their portfolios in time. Those who missed the boat had to accept losses.
Novum Partners SA, formerly known as Novum Capital Partners SA, uses various indicators for this purpose. Not only price developments, but also regulatory changes, demographic trends and technological breakthroughs. Sounds like a lot of effort? It is. But it’s worth it.
The balance between stability and flexibility
Wealthy families face a dilemma. They want stability for their long-term goals. At the same time, they need to remain flexible enough to respond to change. That’s harder than it sounds.
A classic portfolio consisting of 60 per cent equities and 40 per cent bonds works differently today than it did twenty years ago. Interest rates close to zero have devalued bonds. At the same time, equities have been distorted by central bank policy. What remains? Alternative approaches that need to be constantly monitored.
