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by A. Hohenadl and C. Platt, Euro am Sonntag
ZThere are some parallels between tailoring and investment. If you let professionals run it, it costs money. But if the experts understand their craft, high quality results come out and you have a lot of fun with the purchase – and that for years.
Just as a tailor-made suit is cut differently for every wearer, the same investment does not suit every investor. Some cannot get enough of funds that can increase their value explosively, regardless of the risk involved. The others want a solid investment with good earnings prospects, but without constantly giving full throttle. Still others would like an increase in capital with a manageable risk.
uro am Sonntag went in search of portfolios from professionals who are worth their money. The editorial team has three types of investors in mind: offensive, moderate and defensive. For each, she has filtered four funds from the more than 6,000 products that are sold to private investors in this country. All funds that invest at least partially in stocks (or stock options) entered the race. Pure bond portfolios were left out.
In order to determine the top portfolios, uro consulted several key figures on Sunday. In the first step, products were selected that have been on the market for at least five years and have uro fund grade 1 or 2. Such a rating certifies that the portfolio has an above-average risk-return profile. In order to determine the fund rating, the performance against direct competition, the performance against a benchmark index and the fluctuation range over the past four years are considered. A qualitative assessment of the fund management is also included. So only the best products of their kind were shortlisted – around 700 in number.
In order to determine the right funds, the editors looked at a risk figure in step 2 that is less in the limelight than volatility: the maximum loss, in English maximum drawdown. It provides information on how much the unit value of a fund has declined at most in a certain period of time. The key figure describes the theoretical case that an investor entered a fund at a high point and sold his shares at a low point.
This makes it clearer than the volatility, which describes the fluctuation range of the share value around its mean value. While volatility is difficult to grasp, the maximum loss gives investors an idea of the worst-case scenario they would have to endure during the holding period of a fund.
Corona as a test of strength
uro am Sonntag sorted the portfolios with fund grades 1 and 2 according to their maximum loss in fund currency over the past five years. For almost all products, the key figure shows how the portfolios fared during the Corona crash a year ago. Because this market phase was the most sensitive damper in recent years.
Some defensive mixed funds that combine stocks and bonds come up with values of less than ten percent. Pure equity funds that excel in this metric lost a maximum of ten to 20 percent. At the lower end of the scale are funds that have since suffered losses of 40 to 60 percent.
The editorial team has created three classes so that investors can find tailor-made funds. The first contains portfolios with a very slim risk. A product could have lost a maximum of 15 percent in the past five years in order to be included here. The second category comprises funds with a maximum loss of between 15 and 25 percent. Portfolios that have meanwhile entered more than 25 percent can be found in group 3. This is where particularly dynamic equity funds cavort, some of which have achieved strong returns, but also had to take a heavy toll when the prices eroded in the first quarter of 2020.
Uro am Sonntag presents four funds from each category, which have particularly proven their performance in recent years. In the final selection, the return played a decisive role – because without attractive growth, the best loss limitation is of little use. And of course the outlook has to be right: only funds from which we expect a lot in the future were selected.
The result is a colorful, extremely lucrative mix. Whenever possible, we have covered various facets with the funds that we present on the following pages. In this way, different asset classes, regions, industries and topics can be brought into the depot.
Defensive products are more suitable for investors who do not trust the current bull market but do not want to leave their money to waste in their savings account. Investors who want to bet significantly on stocks but prefer products that are comparatively resilient can be found in the moderate group. And anyone who wants to ride the boom of the past few months invests in the offensive funds.
Finally, we explain why it makes sense not only to look at the return, but also to keep an eye on the amount of potential losses.
Keep an eye on the dangers
Investors who, in the worst case, want to experience a maximum loss of ten to 15 percent, are in good hands with asset management mixed funds and a portfolio for foundations.
The maximum possible return teasing out is not the ultimate goal of defensive fund managers. With them, capital preservation and cautious capital increase are in the foreground, so they consider extensively the dangers to investment. them it’s about losing significantly less than the average in a crisis.
With a maximum loss of well below ten percent for one Five-year return of well over 20 Percent, the mixed fund FVM-Classic UI offers an excellent risk-reward profile. The Krzel FVM stands for Freiburger Vermögensmanagement, a Active asset manager since 1998 in the south-west of Germany. The 2008 and 150 million euros heavy portfolio reflects the investment philosophy of the house.
FVM boss Claus Walter feels first and foremost about preserving his assets Committed to customers. The fund aims to be a offer steady performance with reasonable fluctuations. To do this, scatters he has assets across various asset classes – from stocks to bonds up to gold. Also hedges over Derivatives are possible. About this means the fund managers attacked about the beginning 2020, so that the fund survived the CoronaCrash extremely well.
Steer well through turbulent times
The other two also come from the asset manager’s corner balanced mixed funds in our Table. Stand behind the Arbor Fund the Munich investment specialists from Huber, Reuss & Colleagues. Portfolio manager Adrian Roestel is pursuing a rather conservative strategy. However, up to 60 percent shares ensure that the return does not fall by the wayside. Are mainly contained in the fund Companies from Germany and the USA. Even in turbulent times it showed Roestel that he can stay on course. So his fund had a manageable eleven percent in the corona price crash quickly made up for this loss.
Much better known than the two of them the aforementioned is the mixed fund DJE Interest & dividend of the asset management Dr. Jens Ehrhardt. The 2.2 billion euro portfolio is provided by Jan Ehrhardt, the founder’s son, managed. In the ten years since the fund was founded, he has proven that he is one deliver stable performance and protect investors from major setbacks. Invested with the portfolio Ehrhardt in stocks and bonds. Of the The share portion is capped at 50 percent.
In the Corona crisis there was Fund only twelve percent behind. A veteran of stable value Plant is the Foundation fund of Private bank Merck Finck. He is 30 Years the oldest and first of its kind in Germany and persecuted decidedly a defensive strategy. The fund management is not tied to a benchmark index and can be tactically flexible.
Investment focus of the Portfolios are fixed-income bonds from creditworthy issuers. To come with a share of 25 to a maximum of 30 percent share certificates of Companies, mainly so-called Value stocks in times of crisis lose less than average. That gives the fund a calm one and steady performance on which In addition to a favorable expense ratio, foundations place great value. The annual gain is three to four percent, which make price fluctuations nobody nervous.
Risk and return in balance
With a maximum loss of 19.7 percent in the past five years falls the LuxTopic shares Europe although not in our whole defensive category. But there is no doubt his risk is very moderate, but the opportunities for returns are decent. The portfolio achieved an average return of nine percent per annum Five-year period.
The fund has been managed by the asset manager since it was launched in 2003 Robert Beer. He chooses from the stocks of the Euro Stoxx 50 Index initially those 35 from that last looked good and stable have developed. Then he backs it up Portfolio systematically with options against high losses. That has happened in 2020 paid in full. Beer’s fund belonged to the few who suffered the Corona slump survived almost without a dent. This achievement along with the long term Beer helped to achieve good results third place on the podium in the “Fund Manager of the Year 2021”. The award is from the Finanz Verlag, who also uro publishes on Sunday, forgive.
Stable with small businesses
The German also shows a remarkably low maximum loss Paladin One equity fund. Noteworthy because the portfolio specializes in small caps that not necessarily as low-fluctuation be valid. But the fund manager Marcel Maschmeyer and Matthias Kurzrock rely on the one hand on undervalued Stocks and companies in special situations such as took over the stable listings have as a consequence. And third, they control the risk with a flexible one Cash quota, which is also clear can be over 20 percent.
The goal of the fund manager: ten percent annual return with a significant lower fluctuations than the overall market. Over the past five They have easily managed it for years.
The third equity fund in the round, of MainFirst Global Equities, goes on the hunt for stocks worldwide and claims to be the pioneer of megatrends to assemble in the portfolio. The fund managers are looking for companies long-term structural growth. For example, they open early the winners of the digitalization but also on the topics of artificial intelligence, e-commerce and the decarbonisation of the economy. Utilities, banks or companies from the The oil and gas sectors are even in the fund not represented or only slightly represented.
Overall, the portfolio benefits from the structural changes that were exacerbated by the pandemic. To do this, the fund managers control it Stock Index Futures Risk. Of the maximum loss is therefore still ranked below the 25 percent mark.
The maximum drawdown of the Carmignac Emerging Patrimoine. Of the Emerging market funds offer a mix from stocks and bonds, also uses Currency opportunities. The breakdown is current: 40 percent shares, just under 40 Percent government bonds and 20 percent Corporate bonds. The portfolio, that was launched ten years ago, It may not be one of the top returns in its category, but it does has offered attractive yields at relatively low levels in recent years Rate fluctuations. A good way to get the emerging economies into the depot and the risks to keep it in check.
Return at full throttle
Investors who are ready for interim losses of more than 25 percent can invest in specific investment segments with equity funds.
Three topics have dominated the stock market in recent years: digitization, sustainability and China. No wonder then that the top ranks of the five-year rankings are often occupied by funds with these focal points. That is reflected also reflected in our product selection. Strongest of the funds presented here is the BGF World Technology. He could its value within five years than quadruple. During the Corona crash, he gave in fund currency by around 30 percent. But already a few weeks after the bottom The portfolio marked mid-March 2020 new highs and the share value knew no more stopping.
The topic of technology is also in Remaining promising in the future. who Desires high returns and is willing to take risks depends on the appropriate Fund not over. Managers Tony Kim are investing in the Blackrock product and Reid amount mainly in blue chips, almost ten percent of the assets are in mid and small caps. The Fund managers interpret the term technology broadly and don’t just keep it pure IT company but also title from the retail and Media like Amazon or the Chinese social media provider Tencent.
Set with the koworld climate Investors on another hot topic. More and more investors want to Investing with ecological and social concerns. That has to be one Boom in sustainability-oriented Fund.
The koworld climate serves a special facet of this development. He invests in companies supported by the Efforts to protect the climate improve, profit economically. Companies count among others the areas of energy efficiency, recycling, pollution reduction and renewable energies – for example the manufacturer of inverters for solar systems, Enphase Energy. Not only with its growth can convince the fund, also with his Resilience. Of the four offensive products, he lost during the least of the corona crash.
The JP was a little less robust than the koworld portfolio Morgan Greater China Fund. He gave in from March 2016 to the present by a maximum of 33.3 percent. Even with him was the decline in the first quarter Soon balanced and even overcompensated in 2020. The one that has been successful for years is now available twelve months from now Fund almost 60 percent up.
The fund manager Howard Wang and Rebecca Jiang are looking in China, Hong Kong and Taiwan to high quality company with strong growth. They found this among other things in Alibaba, Tencent and Taiwan Semiconductor, which are by far the largest Values in the portfolio.
The editorial team recommends the fourth offensive product Robeco Global Consumer trends. Skilfully grab them Managers Jack Neele and Richard Speetjens raised the issue of consumption. In your Portfolio focus on three Trends for which they are persistently high Attach importance to: the digital Consumers, Consumers in Emerging markets as well as health and wellbeing. In this way, the portfolio unites such different ones Companies like the online payment service provider Paypal, the Chinese Grocery delivery service Meituan Dianping and the Swedish audio streaming provider Spotify.
In addition to the return, also pay attention to the risk
Who wouldn’t want that in the depot? Funds that double their price within a few years or triple. Is there, no question. Portfolios based on Companies like Apple, Amazon, Facebook and the like have delivered sensational profits in recent years. Special topics such as robotics, artificial intelligence or clean energy boomed at the Stock exchange. Isn’t it best to go to these top performers alone put? No, at least if it is is about a long-term investment strategy, maybe even about the retirement provision.
High returns are inevitably associated with greater risk. This connection may be im Age of excessive central bank liquidity may have been somewhat forgotten. But that doesn’t have to stay that way. The portfolio should therefore not consist exclusively of price rockets that are more likely to result in a crash lose than the broad market.
To make up for losses is namely the more difficult, the higher it is fail. The graphic on the right shows it is clear: Loses a portfolio five percent in value, submits about as big a gain from to get back into the green area to come. At a price slide of 20 percent the fund will have to make up 25 percent for the To make up for loss. And falls the share value even by 50 percent, is a subsequent return of 100 percent for one balanced balance required. Extreme examples are provided by technology funds that were launched around the turn of the millennium and lost by up to 90 percent when the dotcom bubble burst. Many portfolios disappeared from the market. And the survivors had to pay 900 percent Generate plus so that investors from the very beginning are their own Saw cost price again. In many cases this took 15 Years and more. Long term pays it is therefore a matter of a reasonable ratio of return to watch out for risk.
Image sources: RTimages / Shutterstock.com, Peshkova / Shutterstock.com, Finanz Verlag, Finanz Verlag, Finanz Verlag