Behind the scenes

Your capital is in good hands with us: our investment committee manages KEYPRIVATE based on our own analysis, supplemented with the views and reports of some of the top asset managers in the world: Amundi , BlackRock , State Street and WisdomTree.

The Nobel Prize winning Modern Portfolio Theory provides the basis for optimizing your investment portfolio (best return to risk ratio). We use algorithms created by Gambit Financial Solutions for the practical implementation of the theory.

A renowned academic panel of university professors advises Keytrade Bank on the development of KEYPRIVATE, ensuring that the underlying model is always fine-tuned.

Keyprivate process

The investment committee

The investment committee consists of experts from the financial sector with an in-depth knowledge of risk management and financial management. The committee monitors the returns of the portfolios and associated risks, they meet every month, or more frequently, depending on current events.

Guided by studies produced by world players such as BlackRock and Amundi, the committee members analyze the global economic situation and based on this input, they assess the consequences for the 8 trackers. Subsequently, they evaluate the investments of the different portfolios and make adjustments, if need be.

The committee publishes a quarterly report, which every customer with a Keypivate has access to.

Tasks

  • Monitor the global market situation and evolution
  • Review the asset classes of every risk profile
  • Monitor the returns of the investments
  • Monitor and possibly adjust the input for the portfolio optimizer (Gambit)
  • Make decisions about the rebalancing of portfolios
  • Make decisions about the tracker universe

Modern Portfolio Theory

The question of how to protect capital and better still, make it work, is not new. In the ‘Merchant of Venice’, William Shakespeare explains how the merchant always spreads his goods across different ships. That way, if something were to happen to one of the ships, he wouldn’t lose all his goods in one go …

We could go back even further in time. The Jewish bible, the Talmud, states, for instance, that the best thing to do is to spread your money across gold, goods and land. If things go wrong with one of these three, losses will hopefully be compensated by the other two. Clearly, there has been a consensus about the fact that diversification is a good idea for a long time.

The question is how to diversify. Not every asset class carries the same risks so it is probably not sensible to spread capital proportionally. Harry Markowitz and William Sharpe were the first to quantify this gut feeling. In 1990, they were both awarded the Nobel Prize in Economics for this. You could say that Modern Portfolio Theory is the philosophical opposite of traditional stock picking. These days, Modern Portfolio Theory is a widely accepted model for managing diversified portfolios at virtually every private bank.

The academic committee

A panel of renowned academics carefully scrutinises the whole model. Each member has an in-depth knowledge of financial management, asset & wealth management, risk management, portfolio optimisation and financial models.

The academic board is a sounding board for Keytrade Bank, applying their extensive academic knowledge in Modern Portfolio Theory and portfolio management to improving and adjusting the KEYPRIVATE model. The academic board provides advice on the implementation of the financial model and risk management.

Members

  • Prof. Dr. Georges Hübner - Professor of Finance (HEC-ULg Management School and Maastricht University) and co-founder of Gambit Financial Solutions
  • Prof. Dr. Jan Annaert - Professor of Finance (University of Antwerp & Antwerp Management School)
  • Prof. Dr. Marc De Ceuster - Professor of Finance (University of Antwerp) and Academic Director (Antwerp Management School)

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