Our strategy

Our investment strategy involves creating a basket of certificates that invest in blue chip stocks. We buy and sell the underlying certificates based on the performance forecasts of the underlying blue chip stocks, in this way, through balancing the portfolio of underlying certificates, we obtain a better return with lower volatility.

Exchanged traded certificates

A) Exchange-traded instruments, also known as exchange-traded products (ETPs), are financial instruments that are traded on a regulated exchange. They represent ownership or interest in an underlying asset, such as stocks, bonds, commodities, or indexes. ETPs offer investors the opportunity to gain exposure to various asset classes and investment strategies. Some common types of exchange-traded instruments include exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded commodities (ETCs). These instruments are traded throughout the trading day, providing liquidity and transparency to investors.

B) Exchange-traded instruments provide liquidity and transparency to investors through their structure and the way they are traded on exchanges.

1. Liquidity: Exchange-traded instruments are traded on exchanges, which act as marketplaces where buyers and sellers can come together to trade these instruments. The exchange provides a central platform for trading, ensuring that there is a continuous supply of buyers and sellers. This liquidity allows investors to easily buy or sell these instruments at market prices throughout the trading day. The presence of market makers, who are specialized traders that provide liquidity by quoting bid and ask prices, further enhances the liquidity of exchange-traded instruments.

2. Transparency: Exchange-traded instruments are traded on regulated exchanges, which enforce rules and regulations to ensure fair and transparent trading. The exchanges require issuers of these instruments to disclose information about the underlying assets, investment strategies, and fees associated with the instruments. This information is readily available to investors, allowing them to make informed investment decisions. Additionally, the prices of exchange-traded instruments are publicly displayed on the exchange, providing transparency and real-time market information to investors.

C) Exchange-traded instruments provide liquidity and transparency to investors through their structure and the way they are traded on exchanges.

Blue chips stocks

A) Blue chip stocks are shares of well-established companies that have a long history of stable earnings, reliable performance, and strong financials. These companies are typically leaders in their respective industries and have a reputation for providing consistent returns to investors. Blue chip stocks are considered to be less risky compared to other stocks and are often seen as a safe investment option. They are known for their stability and are commonly included in the portfolios of long-term investors seeking steady growth and income.

B) Main characteristics of blue chip stocks:
 
1. Stability: Blue chip stocks are known for their stability and consistency in terms of earnings and performance. These companies have a proven track record of delivering positive results even during economic downturns. Their ability to generate steady profits over time reduces the risk associated with investing in them.
 
2. Strong Financials: Blue chip stocks are typically financially strong with healthy balance sheets, low debt levels, and consistent cash flows. They have the ability to weather economic uncertainties and financial challenges. They have the resources to navigate through challenging economic environments and are less likely to face financial distress. This financial strength lowers the risk of investing in these companies.
 
3. Market Leadership: Blue chip companies are often leaders in their industries, with a significant market share and a competitive advantage over their peers. They have a strong brand presence and are well-positioned to capitalize on market opportunities. Their strong market position provides them with stability and resilience, reducing the risk of market share erosion or being overtaken by competitors.
 
4. Diversification: Blue chip stocks are commonly found in various sectors of the economy, such as consumer goods, technology, healthcare, and finance. This diversification helps spread the investment risk across different industries and reduces the impact of sector-specific risks.
 
5. Dividend Payments: Many blue chip stocks are known for paying regular dividends to their shareholders. These companies generate consistent profits and distribute a portion of those profits to their investors as dividends and can provide a steady income stream to investors, even during periods of market volatility. Dividend payments can act as a cushion against potential losses and reduce the overall risk of the investment.
 
6. Investor Confidence: Blue chip stocks are often favored by institutional investors and have a large base of loyal shareholders. The market confidence in these companies can contribute to a more stable stock price and lower volatility compared to smaller or less-established companies.
 
7. Longevity: Blue chip stocks are usually well-established companies that have been in operation for many years. They have a proven business model, a strong customer base, and a solid reputation in the market.
 
8. Liquidity: Blue chip stocks are highly liquid, meaning they can be easily bought or sold without significantly impacting the stock’s price. This liquidity provides investors with the flexibility to enter or exit their positions as needed. Blue chip stocks are generally more liquid, meaning there is a higher trading volume and a larger pool of potential buyers and sellers. Investor confidence attracts more market participants, increasing the liquidity of these stocks. Higher liquidity reduces the risk of not being able to buy or sell shares at a desired price, allowing investors to enter or exit positions more easily.
 
9. Stock Price Stability: Investor confidence helps maintain a stable stock price for blue chip stocks. When investors have faith in a company’s long-term prospects, they are more likely to hold onto their shares, reducing the selling pressure. This stability in stock price reduces the risk of sudden and significant price declines, protecting investors from potential losses.
 
10. Lower Volatility: Investor confidence can contribute to lower stock price volatility for blue chip stocks. When investors have a positive perception of a company’s financial health and prospects, they are less likely to react strongly to short-term market fluctuations or negative news. Reduced volatility lowers the risk of significant price swings, providing a more stable investment environment.
 
11. Access to Capital: Investor confidence in blue chip stocks can make it easier for these companies to raise capital through issuing new shares or debt. When investors are confident in a company’s ability to generate returns, they are more willing to invest in its growth initiatives. This access to capital reduces the risk of financial constraints and provides opportunities for blue chip companies to pursue strategic investments and expansion.
 
12. Long-Term Performance: Blue chip stocks with a strong investor base and high confidence levels are more likely to exhibit consistent long-term performance. Investor confidence can attract patient, long-term investors who are willing to hold onto their shares for an extended period. This stability in ownership can contribute to sustainable growth and reduce the risk of short-term market speculation impacting the stock’s performance.