Capital market investors have to act like entrepreneurs: they need to make strategic investments and consider opportunities and risks. This tenet forms the basis of our Strategic Asset-Allocation approach. We explain the opportunities and risks of liquid and illiquid assets and quantify them with the help of reliable return and risk indicators. We then go on to develop an individual strategy for your fortune together with you. Your long-term investment goals and your risk appetite or your risk aversion will serve as a guideline for the strategy.
Our strategic asset allocation is based on thoroughly researched high-quality quantitative models, which provide the most accurate picture of the global capital markets available. We attach considerable importance to a realistic view of tail risks and complex market relationships. Models for the liquidity risks of illiquid investments (direct real estate investments, corporate stakeholdings, private equity) are highly relevant, too, in order to ensure that our clients’ fortunes are allocated in line with their preferences. High-quality models need to be able to adequately reflect empirical stylised facts, such as “black swans” on the equity markets or yield smoothing for illiquid asset classes. Our strategic asset allocation relies on our high-quality, award-winning proprietary Monte-Carlo simulation model. In addition, our quantitative methods are complemented by years of practical experience across several hundreds of projects for all types of wealth and clients.
Our well-thought-out, consistent and transparent investment process rests on a key pillar: the liquid benchmarks and market indices defined in the strategic asset allocation need to be covered by passive exchange-traded funds (ETFs) and/or actively managed target funds. The relevant funds are selected with the help of a sophisticated quantitative analysis and in line with the motto “passive ETFs as a basis, actively managed funds whenever it makes sense”. Cost efficiency and a realistic assessment of the outperformance potential in different target markets are key considerations. Our “PassivPlus” concept relies on academically researched and well-proven fundamental concepts which serve as guidelines for the complete investment process, from its beginning to its end.
Our “PassivPlus” concept relies on academically researched and well-proven funda-mental concepts which serve as guidelines for the complete investment process, from its beginning to its end. We use a broad range of statistical methods with a particular focus on big data algorithms and factor-based modelling. We do not invest in the latest “ideas” or “market trends”. Instead, our goal is to construe a near-benchmark, efficient portfolio which offers institutional and retail investors an investment approach that is based on stringent academic research and offers efficient implementation opportunities.