Mixed Mandate

Risk-optimised and sustainable implementation of your investment strategy

Higher return without additional risk

What sounds like unrealistic promises is simply a more efficient use of the risk budget. Compared to conventional index solutions, OLZ mixed mandates achieve long-term excess return with a given risk budget. By systematically taking into account the main risks (liquidity, equity, interest rate, credit and currency risks) in the selection of individual investments, complexity is avoided, costs reduced, transparency and risk-return efficiency increased.

Sustainable and efficient implementation of your investment strategy

Indexed implementation of an investment strategy is not efficient from a risk-return perspective. Financial market research confirms that standard indices do not have an optimal risk-return-ratio (Sharpe Ratio). Classical indexing therefore incurs opportunity costs.

OLZ stands for efficient implementation of your investment strategy with our sustainable and risk-based portfolio optimisation. Implementation is systematic and cost-conscious. The result is a significantly improved risk-return-ratio (Sharpe Ratio).

Effective diversification of the overall portfolio

We aim to effectively diversify risks, taking into account the individual risk factors behind the asset classes (equity risk, interest rate risk, credit risk, currency risk, liquidity risk, etc.). We particularly avoid specific risks which do not contribute to diversification or are not compensated with a return premium.

No investments which are a pure combination of other asset classes.

Examples of such investments are structured products, hedge funds or high yield debt. These investments are usually associated with higher costs, complexity and non-transparent risks, while their return contribution can be replicated with traditional investments such as equities and bonds.

Optimised diversification within asset classes

OLZ minimum risk funds are optimally composed portfolios based on estimated risk parameters (volatilities, correlations). This risk-based portfolio optimisation significantly reduces fluctuations in value and maximum losses during market corrections.

Efficient use of the risk budget possible

OLZ allows for better use of the risk budget. Thanks to targeted consideration of risks when selecting investments and risk-based portfolio optimisation within the asset classes, more degrees of freedom are created in asset allocation. Specifically, with the same risk budget, a higher equity quota can be maintained, thus increasing the long-term return potential of the overall portfolio.

Optional – bandwidth management with OLZ Dynamic

Market risks can be susceptible to high volatility. For this reason, an investor’s risk budget is sometimes massively over- or undershot in static asset allocation. To avoid this, we offer dynamic management of asset allocation based on scientifically sound risk indicators. The equity component is lowered during turbulent market phases and increased in quiet periods. As a result, risks are not only reduced within the asset classes, they are also placed more optimally through a dynamic asset allocation.

Sustainable investment with ESG integration

OLZ incorporates environmental, social and ethical criteria (ESG Environmental, Social, Governance) into portfolio composition.

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 optimisation and are more heavily weighted (ESG integration according to best-in-class).