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Banque Richelieu Monaco

“The weight of China represents between 10% and 15%

of the equity exposure of portfolios.”

In 2021, to cushion volatility, we will need to opt for asset diversification. Amongst Banque Richelieu
Monaco’s preferences are Chinese tech and ESG stocks.

“2020 has been a bit of a mad year!” exclaims Biden as President of the United States. “After a the crisis will have made social inequality worse.”
Marie-Hélène Royet, Chief Investment Officer period of uncertainty, markets have now turned There is a fear that social unrest could result in
(CIO) of the Banque Richelieu Monaco. “Whilst the page and moved on from the Trump chapter. certain countries.
forecasts were good across all investment The economy will be stimulated with the US
sectors at the beginning of the year, the shock re-start plan and a recovery in consumption.” Thus, the Banque Richelieu Monaco advocates
wave associated with the Covid-19 pandemic There has also been another crucial change: investing in the emerging countries which were
started to spread in March and it was a real the possibility of a Covid-19 vaccine, so now able to come out of the crisis more quickly – in
catastrophe: a historic, global crisis. Our means investors can look to the “post-Covid” era. “With particular Chinese tech companies like Alibaba,
of production, as well as our consumption, were Pfizer’s announcement on 9 November 2020, Baidu, Xiaomi, NetEase and Youdao: “The weight
at a standstill. Markets slumped an average of everything changed. The very same day, shares of China now represents between 10% and 20%
30% and even gold fell by 14%!” remembers the in companies like Accor, Booking.com and Airbus of our portfolio,” observes Marie-Hélène Royet,
CIO. If investors feared that the month of March rose by 20%! However, Covid-related companies who also recommends ESGs (Environmental,
would see a halt to the financial system and a such as Amazon saw drops of between 5% and Social and Corporate Governance investments):
subsequent domino-effect flurry of bankruptcies, 6%…thus so-called ‘Back-to-Work’-related shares “Social- and green-related shares are attracting
central banks stood up to the task: “Injections will be out-performing ‘Stay-at-Home’ ones,” more and more investors and the sustainability
of cash and shares by governments, such as predicts Marie-Hélène Royet. of growth is paramount when selecting where to
financing furlough and short-time working, invest,” the expert points out, citing Saint-Gobain
allowed economies to be kept intact. For the Lessons to be learnt for 2021 and Schneider as two popular possibilities in
first time, this summer European countries were With the imminent arrival of vaccines and energy-saving research.
able to reach an agreement for a recovery plan the possible end of the crisis, a new phase
of €750 billion!” is beginning: “Central banks are not there to What about bonds?
continue printing money indefinitely. They are On the bond market, central banks are expected
Stocks: “Back-to-Work” vs “Stay-at-Home” going to have to stand back if the economy to keep interest rates very low. “Investing in
Once confidence was re-established, markets recovers. In this environment, we will need bonds always makes sense from a diversification
quickly picked up again, with huge growth to opt for geographical asset diversification. perspective. The cash is to be under-weighted in
in technological and internet-based shares. This is the key to generating performance and the allocations of the portfolios! Until now, the
“So-called ‘Stay at Home’ shares like Zoom, cushioning volatility. Gold (+25% since the focus has been on the quality of companies over
Amazon and Spotify, all essentially American, beginning of the year) in particular remains a the balance sheet. We can now move towards
out-performed themselves during lockdown favoured investment,” advises our specialist, lower-rated companies and seek more yield.
and the structures already in place before the who says there are lessons to be learnt from We must also integrate flexible management
health crisis developed massively. The Nasdaq the global crisis: “The world emerges with more into the bond marketplace,” concludes Marie-
bounced back over 70% in five months.” Another debt and China will become an even more Hélène Royet.
event that marked 2020 was the election of Joe important player for the world economy – and

Managing almost €700 million
At Banque Richelieu Monaco, a team of six investment advisors manages €380 million in discretionary management (the client delegates the
management of his or her money) and €300 million in advisory management (the client is advised by a specialist but makes the final decision).
As at 31 October 2020, performance was between 1.22% for a conservative profile and –1.09% for dynamic management. “Historically, our
management has out-performed in difficult market periods, thanks in particular to a focus on the preservation of capital and very close
proximity to our clients,” says Marie-Hélène Royet. Please note that the Banque Richelieu Monaco is the former KBL Monaco, established
in 2006 in the Principality.

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