Luis Magno of Banco Best is our Advisor of the Month

With over 25 years of experience in the private banking sector, I started my career at Banco Comercial Português (now Millennium bcp) in 1994, before I had even started my studies in Bank Management.  

My passion and commitment to customer service led to me being given the opportunity to manage a group of Private Banking (HNWI) clients in 1998.  

Living and working abroad has increased my experience and understanding of global financial markets. It has also improved my ability to understand each client's unique needs and tailor their investment strategies. 

Today, at Banco Best, my focus is on providing personalized financial solutions. Solutions that are  tailored to each client's risk profile.

What made you decide to go into the financial sector? Did you have any other vocations?  

I have always liked math and numbers. In the beginning, I thought that my vocation was to be a chartered accountant.  

When I started working in the financial sector, dealing with clients, and gaining their trust to advise them on their financial decisions, I became enthusiastic about what I do and left those initial thoughts behind.

What does a typical workday look like for you? How do you organize your time?

The day starts with a review of the latest national and international news, what economic data will be released, and how it might affect the financial markets.  

Analyzing research reports and attending investment conferences on the market outlooks of various asset managers is also part of the daily preparation for client meetings.

Which portfolio allocations are most interesting in the current market situation?

Portfolio allocations must be suitable for the investor's characteristics and profile.  

Despite the above, in current market conditions, a diversified portfolio of a moderate investor with a long-term investment horizon could benefit from an allocation of 30%-35% in bonds, 50%-55% in equities, and 10%-15% in market-neutral alternatives, as the inflation problem appears to be "contained" by central banks and the soft-landing scenario is the most widely accepted. 

Which sector do you consider particularly interesting at the moment?  

As the central banks have signaled that interest rates may be cut in the coming months, the technology sector could become an attractive investment opportunity. Lower interest rates are likely to have a positive impact on the performance of technology  companies, which have historically been highly leveraged. In the technology field, three areas stand out:  

• Artificial Intelligence (AI) and Robotics - Companies are increasingly turning to AI and robotics  solutions to improve efficiency, reduce costs and elevate the customer experience. These technologies have the potential to transform entire industries, from self-driving cars to automated manufacturing.  
• Digital Security – a rapidly growing area within the technology sector. As cyberthreats become more frequent and sophisticated, companies are prioritizing cybersecurity investments to protect data and operations. For companies that offer innovative cybersecurity technologies and services, this increased focus on digital security presents an interesting opportunity.  
• Additionally, concerns about climate change and reducing carbon emissions are driving the push for sustainable energy. Investments in clean energy technologies such as solar, wind, and hydroelectric power are on the rise. The sustainable energy sector is becoming more  appealing due to advances in energy storage and grid management systems. 

How should investors orient their portfolios in the current environment?  

When making investment decisions, it is important for investors to consider diversification  and their time horizon. For long-term investors, an actively managed multi-asset portfolio can offer benefits. It  provides exposure to different asset classes, is flexible in responding to market changes, and  can incorporate ESG policies. A diversified approach, tailored to the investor's time horizon, remains the key to navigating today's market uncertainties.  

What characteristics do you think a good financial advisor should have?  

In order to effectively guide clients towards their financial goals, a good financial advisor should have a combination of:  

• Technical Expertise - an in-depth understanding of financial markets, investment products, tax legislation, and pension plans, as well as keeping up to date with trends, regulations, and best practices in the sector to provide informed advice to clients.  
• Interpersonal skills - Be an effective communicator in the explanation of complex financial  concepts to clients, must be trustworthy, as clients trust them with sensitive financial information, and must be a skilled analytical person and be able to analyze situations, identify potential solutions, and make appropriate recommendations.  
• Ethical principles - Honesty, integrity, transparency, disclosure of potential conflicts of interest, and acting in the best interests of their clients are ethical principles to be respected. However, the most important characteristic is being an active listener – this is the key to success in meeting client’s expectations.

When you have free time, what do you like to do?

In my spare time, I enjoy sports, traveling, and going to the beach. Football has always been a favorite of mine, but lately, I have been hooked on padel tennis. Traveling allows me to explore new cultures and landscapes while going to the beach provides a peaceful coastal retreat where I can relax and recharge.  

These activities provide a perfect balance to the daily demands of life, filling my free time with excitement, exploring, and tranquility.