Higher returns on investments are generally associated with higher risks. A fundamental connection that is often underestimated.
Combining the strategic allocation across different asset classes that is customized to the client’s risk tolerance, with an active risk management (i.e. a continuous review of market conditions) is the prerequisite for ensuring optimal risk management.
Our continuous stability measurement enables us to precisely determine the market environment and to adjust the allocation in the respective asset classes. This is the source of our active risk management.
The process for our tactical management is based on the target portfolio and can then – without further adjustments – be used directly to construct customized portfolios. This enables cost-efficient and precise management of portfolio risks. Implemented in an investment strategy, it is possible to reliably reduce drawdowns. For the implementation, a conservative approach is taken by using only liquid instruments.
Most hedging strategies used so far are usually too slow, not sufficiently precise or have too much room for interpretation and thus do not provide clear signals for a precise control of the portfolio.