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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.
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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.
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Source: Portfolio Management Universal-Investment-Luxembourg S.A., Branch Frankfurt am Main (February 2020)
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Source: Portfolio Management Universal-Investment-Luxembourg S.A., Branch Frankfurt am Main (February 2020)
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Source: Portfolio Management Universal-Investment-Luxembourg S.A., Branch Frankfurt am Main (February 2020)
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Every overlay mandate is customised to the Investor‘s specific needs.

Participation in positive and limitation of negative market movements

Possibility to respond swiftly and in a coordinated manner to market risks
  • From investment advisory to a completely rules-based overlay process
  • Active signals from the provider of choice may be implemented

Assessment of different asset classes, risk categories and portfolio specifications
  • Hedge analysis, risk allocation, risk budgeting
  • Management of risk categories separately or holistically

The individuality of the overlay is supported by a custom software solution
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Every overlay mandate is customised to the Investor‘s specific needs.

Participation in positive and limitation of negative market movements

Possibility to respond swiftly and in a coordinated manner to market risks
• From investment advisory to a completely rules-based overlay process
• Active signals from the provider of choice may be implemented

Assessment of different asset classes, risk categories and portfolio specifications
• Hedge analysis, risk allocation, risk budgeting
• Management of risk categories separately or holistically

The individuality of the overlay is supported by a custom software solution
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Modular overlay approach – only that which is necessary is hedged.

Customisation via a modular structure
  • Separate management of multiple risk categories
  • From risk overlay to opportunity-based overlay

Consistent risk overlay process tailored to the various risk categories
  • Targeted use of derivatives:
    Derivatives hedge risk categories, not asset classes
  • Reduces pro-cyclical behavior by using counter-cyclical risk budget transfer Significantly
  • Reduces the probability of an expensive full hedge
Increases risk transparency, for example performance by risk category
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Modular overlay approach – only that which is necessary is hedged.

Customisation via a modular structure
  • Separate management of multiple risk categories
  • From risk overlay to opportunity-based overlay

Consistent risk overlay process tailored to the various risk categories
  • Targeted use of derivatives:
    Derivatives hedge risk categories, not asset classes
  • Reduces pro-cyclical behavior by using counter-cyclical risk budget transfer Significantly
  • Reduces the probability of an expensive full hedge
Increases risk transparency, for example performance by risk category
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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:
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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.
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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 489 billion EUR assets under administration (as of March 2020), Universal-Investment is the market leader for Master KVGs and the largest independent fund service platform in German-speaking Europe.

Thorsten Schneider
Thorsten Schneider Head of Sales Institutional Investors
& Distribution Services
Universal-Investment-Gesellschaft mbH

Peter Flöck
Peter Flöck Head of Product Management
Head of Branch
Universal-Investment-Luxembourg S.A.
Branch Frankfurt am Main
Please fill out the field correctly.
Please fill out the field correctly.
Please fill out the field correctly.
Please fill out the field correctly.
Image

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 489 billion EUR assets under administration (as of March 2020), Universal-Investment is the market leader for Master KVGs and the largest independent fund service platform in German-speaking Europe.

Thorsten Schneider
Thorsten Schneider Head of Sales Institutional Investors
& Distribution Services
Universal-Investment-Gesellschaft mbH

Peter Flöck
Peter Flöck Head of Product Management
Head of Branch
Universal-Investment-Luxembourg S.A.
Branch Frankfurt am Main
Please fill out the field correctly.
Please fill out the field correctly.
Please fill out the field correctly.
Please fill out the field correctly.
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