
Each investor has his own unique investment strategy and his own unique approach to strategic asset allocation (SAA) and, thus, his own preferred driving style. The Portfolio Management team has competently, professionally and successfully steered overlay mandates on the ideal line for the last 18 years, using a tailored overlay approach proven in diverse market environments. Overlay concepts are available specifically as FX Overlay, as well as in modular form as Risk Overlay and Risk OverlayPLUS. Overlay mandates under management total 48.2 billion euros (as per December 2020). In order to stabilise the portfolio performance, Universal-Investment provides a comprehensive management of equity-, interest-rate-, currency- and spread-related (optional) risks, using derivatives in a separate overlay sub-segment. As a Master KVG, Universal-Investment has an overview of the fund, including, for example, its FX exposure.

Maintaining the ideal line and staying on track in the process is challenging in complex market environments. Using a proven overlay approach with tailored and modular features, the Portfolio Management team at Universal-Investment strives to steer an investor’s strategic asset allocations on the ideal line and keeps it on track.
Along with other components of the driver assistance system, the “tactical signals“ component offers the possibility of an efficient risk budget allocation. The fundamental tactical signals therefore play an active role.
Along with other components of the driver assistance system, the “tactical signals“ component offers the possibility of an efficient risk budget allocation. The fundamental tactical signals therefore play an active role.
Source: Portfolio Management Universal-Investment-Luxembourg S.A., Frankfurt branch

There are several reasons for going off track with a portfolio. And there is a tried-and-tested way to stay on track. The following examples show what this can look like in practice during key market events:


Risk Overlay, Risk OverlayPLUS and FX Overlay.
Manuel Stratmann and Glenn Marci, Senior Portfolio Managers Overlay & Quant Models at
Universal-Investment-Luxembourg S.A., Frankfurt branch characterise our three Overlay approaches.