Investment Philosophy

The Investment Philosophy of Lugano Financial Advisors is comprehensive and based on the following essential principles: sense of responsibility, focus on the return of the investment and satisfaction of the customer.

Our independence and the complete absence of conflicts of interests grant investment strategies perfectly in line with the needs of the customer. Based on open dialogue and neutrality, our consulting is focused on a selection and an accurate tracking of products based on the objectives of the client.

Thanks to multi-currency and geographic diversification, our consultants are able to structure the client’s portfolio to ensure proper risk management. Finally, our approach integrates all aspects of tax planning from the beginning.

The Core & Satellite Investment Approach
We believe in the Core & Satellite Investment Approach, which is an investment strategy designed to minimize cost, tax liability and volatility while providing an opportunity to outperform the broad stock and bond market as a whole.

The "Core" Portfolio is made of passively-managed securities that track major market indexes mainly in the Equity and Bond markets (index funds, ETFs, passive mutual funds).
The positions may have a particular style bias (i.e. more small cap stocks over mid/large cap companies, more value positions over growth positions, higher or lower concentration in developed international markets.
Because of the holdings passive nature and the belief that this structure is essential to long term planning and growth, this style allows to greater tax management/sensitivity inside the investments, returning fewer short and long term capital gains exposures, thereby benefiting the client's tax return.

The "Satellite" portion, by contrast, comprises holdings that the advisor expects will add alpha, the financial term for returns exceeding systematic.
Thanks to our open architecture holdings may include the best actively managed stocks, mutual funds, hedge funds, structured productsconvertible and convertible bonds, etc.

These selected short term opportunities are usually low correlated to active investments and should improve not only the return but the risk/return profile of the portfolio, and not only quantitatively but also qualitatively, by adding sources of value different from that in the core but still consistent with the market and economic view and the client's financial planning goals.