Overlay management concepts: individual, modular and tested.
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.
Each overlay mandate is tailored to the investor's specific requirements.
- The chance to participate in positive market developments, as well as to mitigate the effects of negative developments (defending the lower limit)
- The chance to react quickly and flexibly to market risks
- Risk monitoring of individual securities – including those managed by an external asset manager (KVG)
- Modularity: separate budgets for different risk types
- The main risk categories: equity-, interest-rate- and currency-related risks
- Non- or only partly-manageable risks, including, for example, spread and overnight risks
- Dynamic risk budgeting by means of tactical signals possible (Risk OverlayPLUS)
- Assessment of different asset classes, risk categories and overlay specifications
- Hedge quality, risk allocation, risk budgeting
- Regulatory and governmental guidelines
- Management of risk categories either individually or as a whole
- The tailored overlay is underpinned by a customised software solution
A modular overlay approach – hedging only where necesary.
- Allows a customised approach through modular concepts
- Separate management of multiple risk categories from Risk Overlay to
- Consistent risk overlay process tailored to various risk categories
- Targeted use of derivatives: derivatives hedge risk categories rather than asset classes
- Reduces the tendency of a pro-cyclical reaction by making anti-cyclical risk budget transfers between individual budgets (Risk OverlayPLUS)
- Diversifies where appropriate and hedges risks where necessary
- Reduces the likelihood of an expensive full hedge
- Increases risk transparency, for example through performance by risk category
Overlay control logic is fine-tuned to tactical signals.
- Can be used irrespective of the signal provider
- Successful cooperation with Vescore by Vontobel Asset Management for more than 10 years
- Tactical signals play a fundamental, active role
- Fine-tuning in key overlay levers
- Performance harvesting through signal-dependent limits for risk budgets
- Anti-cyclical, tactical re-entry into the market through signal-based budget release
- Intelligent risk budget allocation through tactical signals
Experience and what it can look like.
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.
Stay on track with overlay management.
We provide solutions for both, cross-segment overlay management for portfolios on your platform of choice as well as outsourced overlay management and overlay management as administrative KVG. Universal-Investment has extensive experience in the implementation of overlay management concepts: individual, modular and tested. We are happy to discuss in person with you.
With over 667 billion EUR assets under administration (as of March 2021), Universal-Investment is the market leader for Master KVGs and the largest independent fund service platform in German-speaking Europe.
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