Finanz Konzept on investors’ growing appetite for asset management

Transcript

Since the global financial crisis, investors’ appetite for risk has been subdued; and as a result, returns have taken a hit. But as economies are recovering, demand for asset management is once again growing. World Finance speaks to Lars Oberle Zurich-based Finanz Konzept to find out more.

World Finance: Well Lars, maybe you can start by telling me how is the business of asset management different from six years ago?
Lars Oberle: Well, the market opportunities are completely different. In 2008 you bought undervalued securities in a way, even off top borrowers. Actually, looking at the same stage now, you have a completely different setting. The market is much more risky now.

At the moment we are holding a wide spread throughout all countries

World Finance: Well in some ways the financial crisis did have some positive side-effects, in terms of low interest rates, so how did you take advantage of this?
Lars Oberle: To be honest, we took those low interest rates and realised undervalued potential as a part of a fund strategy.

We took full advantage of dynamic leverage, on daily basic up to 200 percent, outperforms actually around three to four percent.

World Finance: What’s your investment model?
Lars Oberle: We invest in government, corporate and convertible bonds, and bring these three asset classes individually to the market opportunities.

Actually, we invested 90 percent in diversified corporate bond market worldwide. Our focus are bonds issued in Europe, a strong diversification in more than 180 positions, and dynamic leverage on a daily basis.

World Finance: So which countries and asset classes are you invested in, and why?
Lars Oberle: At the moment we are holding a wide spread throughout all countries. We haven’t a focus on special countries; we’re more concentrated on companies and financials with a very good return on equity, in all industries worldwide.

World Finance: How do you tailor portfolios to individual clients, and what are the main funds you currently offer?
Lars Oberle: We are looking at our clients’ needs; how particular or complex they may be. The basic questions like the investment period, currency, risk scale and yield interest.

Our core competencies are fixed income, securities, stocks, and physical diamonds. We managed physical diamonds in a separate investment fund for clients with a conservative investment focus.

Our core competencies are fixed income, securities, stocks, and physical diamonds

World Finance: How do you manage risk?
Lars Oberle: Basically, we are distinguished between long- and short-term market risks. We use derivative hedge instruments for short-term market risks; for medium- and long-term market risk, we rebalance our portfolio to the market opportunities.

World Finance: Finally, looking to the year ahead, where do you see the future opportunities?
Lars Oberle: We see our opportunities in the future in the market fluctuation for interesting purchases, and in the low interest rates to use leverage.

World Finance: Lars, thank you.
Lars Oberle: Thank you.