Asset Management Customized Solutions

Increasing individualization of customer needs

Regardless of the industry, individualization is the trend. In the financial world, it is institutional investors such as banks, insurance companies and pension funds that are setting the pace in this respect. But private investors, family offices and charitable foundations are also attaching increasing importance to the individual design of their investment solutions.

Choosing the ideal partner with OLZ

Systematic success. Our scientific expertise and many years of experience with practical solutions in the field of sustainable, quantitative portfolio optimization offer you a solid foundation for your personal investment solution. Our current minimum risk model is the result of over 20 years of continuous development. Thanks to our cooperation with leading Swiss universities and universities of applied sciences, the latest scientific findings and methods have always been incorporated into the OLZ investment process. The focus has always been on the investment objective and the needs of our customers.

How much individualization do you want?

Based on the proven OLZ minimum risk model, we offer various options for portfolio design: On the one hand, in the fine-tuning of risk optimization, on the other hand, in the definition of the sustainability profile of your portfolio.

Individualized Risk Optimization: Control of Country and Sector Allocation

In the existing OLZ funds, there are clear maximum weights of countries and sectors in relation to the respective benchmark index. Minimum weights, on the other hand, are not envisaged, in order to make the best possible use of the diversification potential with the greatest possible degree of freedom. However, there are also legitimate reasons to prefer a stricter control of minimum and maximum weights. For example, those who want to reduce deviations from the benchmark prefer narrower ranges. However, entire countries or sectors can also be excluded - be it for investment, social or political considerations. However, the more the minimum risk model is restricted during optimization, the more the portfolio loses its diversifying effect.

Individualized risk optimization: Tracking error control

If you are particularly interested in tracking error as a measure of deviation from the benchmark, you can also choose a tracking error limit. You determine the divergence between your investment solution and the benchmark and we implement this target within our optimization model. Similar to the control of the country and sector allocation, an increasing limitation of the tracking error tends to weaken the purisitic minimum risk characteristic. You choose the balance between a purely active and purely passive approach and benefit from a middle ground according to your own taste.

Individual sustainability profile

The topic of ESG (Environment, Social, Governance) has become almost unavoidable in the financial sector. The fact that one can reduce sustainability-specific risks with one's own investment decisions and at the same time make a contribution to improving the economy motivates many to seriously explore the topic. But as present as the topic is, as diverse is the individual interpretation of sustainability. On the one hand, ecological or social aspects can be important, or on the other hand, corporate management in the sense of governance can be the focus. And even in the case of ecological sustainability, priorities can differ widely. Is the achievement of climate targets important? Or, for example, biodiversity, the preservation of intact nature or the fight against environmental pollution?

It is precisely because of these different interpretations that an individually tailored sustainability profile for your portfolio makes sense. Regardless of whether you want to apply your own or external exclusion lists, improve the ESG rating compared to the benchmark, exclude certain business activities, or align the portfolio with the achievement of climate targets, this is possible with OLZ. The big advantage here is that, unlike other investment styles, taking ESG criteria into account hardly dilutes the portfolio characteristics of minimum risk optimization. Instead of buying an off-the-shelf index, they improve the risk-return efficiency combined with their specific sustainability criteria.

Structured approach

On the basis of an initial site assessment, we create first model portfolios and check the plausibility of the desired specifications. This is followed by a discussion of the results and any adjustments to the model design. The implementation of the portfolio is either carried out by OLZ or can be done by the customer, depending on the requirements. After successful implementation, we are available to you as a sparring partner for ongoing exchange and monitoring of the model. We also offer individualized reporting or support you in training the employees involved.