General Information

Overlay and Engineered Solutions

Investment Philosophy

  • Using standardized and highly liquid derivative instruments it is possible to replicate the risk return characteristics of physical fixed income investments in a flexible and cost efficient way
  • The flexibility of derivatives allows us to manage the different fixed income risk-return dimensions independently from one another
  • By using derivatives in the portfolio construction alongside traditional bond investments it is possible to achieve a more flexible and lower cost implementation of the traditional strategies

Capabilities and Solutions

  • In the context of overlay mandates for institutional investors derivatives allow to flexibly manage the different risks of existing assets without changing the physical asset allocation. We offer overlay management solutions along the four dimensions nominal rates, inflation, credit and currency
  • We offer a range of derivatives based products and strategies for institutional and private clients as well as customized solutions for investors with special needs
  • We also offer an integrated approach where the risk analysis also includes the liabilities of pension funds and insurance companies (Liability Driven Investing, LDI)
  • The Relative Return Engineered family of retail funds offers a fully synthetic implementation of a traditional bond fund risk-return profile

Secondary Content

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