Simple or qualified. We can do both

Intelligent risk management has become imperative for institutional investors.
At the very least, statutory and regulatory provisions are making this necessary because the new investment law has extended investment options for investment funds – especially with regard to derivative and structured investment instruments. And pressure is also mounting through global financial markets and demographic change. Pension commitments are currently growing faster than pension assets worldwide. It is these developments that are making higher returns necessary. Investors can often only generate added value – or alpha – by using derivatives and alternative investments.

The consequence is: those who wish to take advantage of the greater degree of freedom need to deploy up-to-date and reasonable risk management.


Tools set market benchmarks

For Universal-Investment risk management has become a core competency. We monitor funds using both the simple and the qualified approach. This means adjusting risk management to the investment strategy of the individual fund and the complexity of the derivatives deployed. In addition, we take into account the specific wishes of our special fund clients when defining investment guidelines.

Monitoring investment limits according to the simple approach is an integral part of our STP system Xentis™. The daily value-at-risk calculation necessary for the qualified approach is backed up by tools and services provided by RiskMetrics Group™. In this way, Universal-Investment sets market benchmarks.