Our “PassivPlus” strategy is based on quantitative and economic criteria which can be objectively measured. We only analyse actively managed funds with a long track record and an investment philosophy which makes economic sense and relies on proven academic concepts. We do not invest in the latest “ideas” or “market trends”. Before we start to look for an active manager, we determine whether it is possible to cover the relevant asset classes more efficiently by cost-effective passive funds. Purely passive portfolios are therefore an option; we call this strategy “PassivPur” and have gained considerable expertise in this area.
Our “PassivPlus” relies on fundamental risk management principles and aims at the highest possible degree of diversification across asset classes, risk premiums, managers, sources of alpha and investment styles. It uses statistical “big data” algorithms for this purpose. The goal is to construe a near-benchmark, efficient portfolio which offers institutional and retail investors an investment approach that is based on strigent academic research and has proven its worth in practice.
The 6 pillars of our “PassivPlus” concept
Funds need to fit in with the Strategic Asset Allocation
Only a small number of asset classes allow alpha generation; for that reason, ETFs tend to be the better choice
Even very good managers may take wrong forecasts, which is why multi-dimensional risk management is essential
“Anti-vulnerability” as a principle: realised small mistakes may help to avoid potential big mistakes
Peergroup analysis is the first step of our fund analysis
Every fund needs a realistic benchmark