Portfolios & methodology

Four clients. Four definitions of success.

The portfolios are fictional, but the discipline is real: every mandate is governed by an objective, horizon, liquidity requirement, risk budget and written investment policy. All four portfolios will be constructed and formally launched on 1 September 2026.

Capital Preservation

A 68-year-old retired business owner has €8m after selling the company that shaped most of his working life. The portfolio must fund €240,000 of annual, inflation-adjusted family spending without forcing sales of growth assets during a market fall. He values stability, but still wants the capital to retain its purchasing power and leave a meaningful inheritance to his adult children.

ObjectiveFund retirement spending, limit severe losses and preserve purchasing power.

Horizon15 years

Risk budget≈ 10% maximum drawdown

15% Cash60% Bonds20% Equities5% Diversifiers

Early-Career Growth

A young professional is beginning a finance career in Luxembourg with €2,000 available to invest and plans to add €100 each month from November. She already owns a small legacy technology-stock position, wants exposure to global growth and Japan, and wants to learn without turning the portfolio into a collection of speculative bets. The portfolio is implemented through Interactive Brokers and kept deliberately simple while contributions are still small.

ObjectiveBuild diversified long-term capital while using controlled positions to develop investment judgement.

Horizon20+ years

Risk budget≈ 25% maximum drawdown

10% Cash25% Bonds60% Diversified equities5% Satellites · provisional

Balanced Entrepreneur

A 45-year-old founder has sold a successful company and now holds €25m of liquid wealth after years in which one business dominated the family balance sheet. Up to €3m may be needed within three years to back a new venture, while the remainder should compound without recreating the concentration risk of the old company. The portfolio therefore separates entrepreneurial liquidity from long-term diversified capital.

ObjectiveDiversify business-sale proceeds while protecting capital reserved for the next venture.

Horizon15+ years

Risk budget≈ 22% maximum drawdown

8% Cash27% Bonds50% Equities15% Real assets & alternatives

Multi-Generational Family Stewardship

A 67-year-old founder and spouse oversee a €40m family pool following a major liquidity event. Their own lifestyle is secure; the larger purpose is to support two adult children, future grandchildren and a measured philanthropic programme while keeping the family capital productive across generations. Investment decisions must combine liquidity, growth and legacy objectives with a family governance process that prepares the next generation to participate responsibly.

ObjectiveSustain real family wealth across generations while funding family opportunities and a long-term legacy.

HorizonPerpetual / 25+ years

Risk budget≈ 30% maximum drawdown

5% Liquidity15% Bonds50% Public equities30% Private markets & real assets

Investment policy

Rules written before markets test them.

The policy is designed to prevent hindsight, style drift and decisions made only because prices moved.

01No leverage, CFDs, options or crypto during year one.
02No individual equity above 5% of a portfolio.
03At least 70% of bonds must be investment grade.
04Maintain each client’s required two-year liquidity reserve.
05Rebalance quarterly or after a 5 percentage-point allocation breach.
06Write the thesis before every purchase; never revise it retrospectively.
07Document every sale: valuation, broken thesis, risk reduction or rebalancing.
08Record realistic fees and simplified tax estimates.
09Use a client-specific blended benchmark—not the S&P 500 alone.

Luxembourg assumption

A transparent, simplified tax ledger.

For comparability, the fictional clients are assumed to be Luxembourg tax residents investing personally. Reports will show gross performance and an indicative after-tax estimate. The model is educational and is never presented as formal tax advice.