Successful asset management requires, in addition to broad diversification, a high degree of flexibility. That is why we have developed strategies to manage global portfolios with different asset classes that enable us to respond flexibly and quickly to all market situations. For our multi-asset portfolios, flexibility means we can adjust the weights of the asset classes between zero and a maximum within every single investment strategy, irrespective of any benchmark.
This means that, if there are drastic market distortions, the positions of specific asset classes can be reduced to zero, for example, since no minimum allocations are set for any of the asset classes. This significantly reduces the volatility of the overall strategy relative to a traditional buy-and-hold approach. We determine and decide with discretion how attractive each asset class is, using systematic analyses and reliable indicators. We achieve maximum management flexibility by using low-cost, physically replicating exchange-traded funds (ETFs). Within Metzler’s multi-asset solutions, foreign-currency risk is managed from the perspective of a euro investor.
In the focus of institutional fund mandates: the requirements of the client
Institutional fund mandates focus on the individual needs of our clients – examples being requirements concerning the investment universe, the instruments to be deployed and the inclusion of sustainability aspects. Portfolio management implements the equity allocation in the form of a broadly diversified investment in stocks of European or global companies, as well as in equity and commodity-stock ETFs. The remainder of the assets under management is invested in secured bonds (e.g. mortgage bonds), corporate bonds, high-yield bonds, emerging-market bonds, money market instruments and government bonds via bond ETFs or individual securities.