Ratchet management

• systematically manages exposure to rises and falls in the market
• provides a range of approaches to protect the initial investment capital and accumulated gains to varying degrees
• takes advantage of any rise in the underlying assets depending on the initial exposure
• protects progressively accumulated gains so as to sustain only limited losses should the market decline
• contributes to long-term portfolio growth thanks to the systematic character of the management strategy.

Financial principle

Constant Proportion Portfolio Insurance (CPPI), is a systematic way of managing exposure that protects a given investment floor.

Mechanical principle

The ratchet, which introduces gradual protection of accumulated profits when the market rises.

Dynagest, www.dynagest.ch, is a leading Swiss contributor to the development and application of the ratchet management technique. It has over twenty years' experience in this management approach, and has worked closely with its customer-partners to explore the potential of the method. Its major efforts in perfecting and broadening the scope of this technique and its application have made Dynagest a leading expert in the field.