For successful asset management it’s indispensable to analyse continuously the macro-economic trends, first of all the demographic development. It is -
together with technological progress and international trade - responsible for the economic growth and thus the development of capital markets.
Before we can begin to invest, we will - based on your risk profile, needs and wishes - determine the strategic asset allocation, i.e. the allocation
of the funds to the various asset classes.
In a second step, the tactical asset allocation is identified taking into account the topical situation as well as the outlook for the financial markets. By
choosing investments with a low correlation, the systematic risk of a portfolio can be reduced significantly and an optimal risk / reward - combination
(called efficient portfolio) found as demonstrated by the “modern portfolio theory”.
The above "top-down - approach" is complemented by a “bottom-up approach” to find in the selected countries and sectors the investments with the best risk/reward profile.
Finally, a technical analysis of the market is used to determine a good timing and price for purchase (and sale).
Numerous studies are showing that more than 80 % of the performance is attributable to an intelligent asset allocation.
The above-described systematic investment process does not increase the performance by itself. But compared with an unsystematic portfolio composition, the risk/reward
ratio is improved and unpleasant surprises are minimized.