Each investor has his own driving style and approach to strategic asset allocation. Maintaining the ideal line and staying on track however is a challenge in complex and fast-moving markets. The Portfolio Management team has been expertly, professionally and successfully putting overlay mandates with a volume of more than 32.5 billion euros on the ideal line and keeping them on track since 18 years with an individual, modular and tested overlay approach. Overlay concepts are available specifically for currencies as well as in modular form for managing portfolio risk and return in general. To ensure a stable portfolio performance, Universal-Investment offers a comprehensive management of equity, interest rate, currency and spread risks, implemented with derivatives in a separate overlay sub-portfolio. As Master KVG, Universal-Investment holistically keeps track of the master fund, for example regarding the FX exposure.
Maintaining the ideal line and staying on track represents a challenge in complex market environments. The Portfolio Management team at Universal-Investment has kept investor's strategic asset allocation successfully on track following the ideal line in a professional and competent manner for over 18 years with an individual, modular and tested overlay approach.
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:
Enabling an investment in global equity and fixed income markets while limiting the influence of unintended currency bets on performance is the responsibility of FX Overlay Management. On this basis, Universal-Investment positions its currency hedging product in a separate overlay sub portfolio which is characterized by best execution competitive trading and reduced cash requirements. Moreover, the administrative Master KVG vehicle available from Universal-Investment provides a holistic view over the entire currency exposure in a master fund, thus considerably facilitating FX Overlay Management.
