FTC Generational Strategy
Preserving wealth.
For generations to come.
When it comes to wealth management, most people focus primarily on the recent past and tend to extrapolate from it.
However, the next 20 to 30 years will be shaped by a new economic order that will require a fresh approach to your investments
When implementing our generational strategy, we therefore always consider a wide variety of scenarios. Based on this, we develop solutions to protect the assets under management for generations to come.
The intergenerational strategy is the foundation of wealth: preserving wealth and purchasing power, stability, and minimizing setbacks are more important here than high returns.
The minimum goal is therefore to generate, over the course of a generation, a return at least equal to the eurozone inflation rate—while significantly reducing the risk of drawdowns and volatility compared to a traditional stock-and-bond portfolio.
The decades from the 1980s to the end of the 2010s were marked by a secular bull market in the stock markets and falling interest rates. This created a stable environment in which traditional portfolios were able to perform very well. However, the classic drivers of success—such as global trade, a favorable interest rate environment, and low inflation—are beginning to crumble. In the long term, the following risks loom, among others:
- Inflation & Loss of Purchasing Power
- Trade Conflicts & Fragmentation
- Geopolitical Uncertainty
- Disruptive Technologies
- Rising Interest Rates & Risks of Recession
"Conservative" strategies usually involve putting more money into bonds. While this may feel safe, it actually increases risks—particularly the risk of real-term loss of value in your assets. The FTC Generations Strategy therefore relies on a variety of asset classes. Each one fulfills a specific role in protecting your assets.
Together, these factors result in a highly diversified portfolio that offers the potential for positive returns in any market condition.
- Stocks for Long-Term, Solid Growth
- Bonds & Liquidity as a Buffer Against Setbacks
- Precious Metals & Commodities as a Hedge Against Inflation
- Trend-following strategies can generate profits even in bear markets
- Volatility strategies are your portfolio's "insurance policy" during market turbulence
- Exclusive to the FTC Generation Fund: Global macro strategies capitalize on market opportunities across all asset classes as conditions warrant
The intergenerational strategy aims to preserve your wealth for the next generation:
- A solid return to protect your assets from losing value, even over the long term
- Low Volatility for Stable Growth
- Limited Drawdowns for Crisis Resilience
- Low Correlation Among Asset Classes
- High liquidity for access at any time
- Individuals approaching retirement.
- Investors who want to protect and preserve their assets
- Parents who want to preserve their wealth for the next generation
- Investors looking for a bond alternative that can generate higher returns with roughly the same level of volatility
- Foundations that prioritize stability over maximizing returns
As a fund or as an actively managed portfolio—
, how would you prefer to protect your assets?
FTC’s Generational Strategy is available in several investment options: First, as an Alternative Investment Fund (AIF) for qualified or professional investors. In this case, you also benefit from the integrated global macro strategies.
For all individual investors with an investment amount of €100,000 or more, we also offer the FTC Generations Strategy as an actively managed portfolio under an asset management mandate. The individual asset classes are cost-effectively replicated using ETFs and other investment funds.