Asset Management The equity portfolio

As a professional and institutional investor, you are caught between a limited risk budget and pressure for returns. With our sustainable and risk-based investment strategy, we offer you a risk reduction with the same equity quota or a higher equity quota with the same risk.

Risk-optimized and sustainable portfolio optimization

As an institutional investor, you are caught between a limited risk budget and pressure to generate returns. To achieve your target return, you would have to take higher risks. We offer you a smart investment solution: Our sustainable and risk-based portfolio optimization (minimum risk) gives you degrees of freedom and room for action:

  • Risk reduction with the same equity ratio

  • Higher equity quota with the same risk and thus a higher return

Standard equity indices are not efficient

Standard indices weight equities by size (market capitalisation). Financial market research confirms that these indices do not have an optimal risk-return-ratio (Sharpe Ratio). Portfolios can be put together more optimally.

OLZ portfolio optimization solves this problem.

We forecast the risk characteristics for each individual equity within an equity universe and from this we derive an optimally composed portfolio. Our target portfolio is the portfolio with the lowest risk or to put it more technically: The ex-ante minimum variance portfolio.

More robust portfolio: Thanks to improved diversification, risk-based portfolio optimization leads to greater security. This manifests in lower risk and lower maximum losses.

Long-term excess return compared to market average: The minimum variance portfolio optimally captures the low-volatility premium. This results from the empirically proven fact that equities with low price fluctuations achieve above-average returns in the long term. This premium is not new but has been proven over several decades.

Sustainable investment with ESG integration

OLZ also incorporates ecological, social and ethical criteria (ESG Environmental, Social, Governance) into the composition of its portfolios.

Companies which do not meet key sustainability criteria are excluded from the investment universe (ESG exclusion criteria):

  • Swiss Association for Responsible Investments (SVVK-ASIR) exclusion recommendations

  • Companies which do not meet UN Global Compact criteria

  • Companies with the lowest sustainability rating

  • Companies involved in a serious controversy

In addition, particularly sustainable companies are given preference in OLZ portfolio optimization and are more heavily weighted (ESG integration according to best-in-class).

For our investment process, we take into account MSCI ESG Research evaluations, a leading international provider of research and analysis in the area of sustainability.

Systematic investment process

When constructing a portfolio, we systematically follow a 3-stage investment process with no discretionary leeway for portfolio management.

Portfolio properties - comprehensible and predictable

The systematic optimization of OLZ portfolios leads to a reduction in volatility and maximum losses. While outperformance can be expected in negative and volatile market phases, the defensive bias of the portfolio underperforms for the most part in highly positive markets with low-volatility. In sideways and slightly positive markets, OLZ strategies tend to outperform the benchmark.

How can I invest with OLZ?

Our equity strategy is available as a fund for various equity markets and regions. By agreement, client specific targets and restrictions (investment universe, tracking error, specific sustainability criteria, maximum weights, etc.) can be taken into account in the investment process for direct mandates.

Frequently asked questions (FAQs)

We are always happy to talk to you.

A lasting relationship with our customers is worth more to us than mere success. Get in touch with us, we look forward to hearing from you. Or contact us directly: