Information concerning the ways and means of productive investment
The current investment strategy offer
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CORE investment strategy
The CORE Investment Strategy constitutes the basic element of the investment concept, and it offers the participation in an actively managed portfolio of first-class global share funds. The coverage of the most important global capital markets is guaranteed through this investment strategy with its comprehensive regional dispersion. The aim of this investment strategy is a long-term above-average capital growth. The chances / risks - profile is optimized by a broad diversification of the select funds.
The investment approach
A fundamental aspect for the design of a successful productive investment is to comprehend, that a broad regional diversification contributes substantially to the optimization of the results. Before this background, investment funds are to be regarded as particularly suitable constituents of an investment strategy. Of essential significance are, however, the initial selection of the funds, as well as the application of an active portfolio management, the aim of which is to make use of temporary developments on the capital markets to achieve additional profits.
These two processes are subject to permanent adjustment, taking into account the objectives of the investment and the time horizon, aside of a variety of valuation criteria and key financial data. Among the requirements imposed upon an active investment management, diverging from a mere illustration of an index, the reaction times of the fund management play an important role in difficult stock exchange phases. The selected funds are characterized by a fast reaction to external events and the corresponding short-term adjustment of the investment policy. This way the conflict between the preservation of the assets and the aspired return in viewpoint of the risks to be taken can be solved.
The CORE investment strategy links these two elements together in a professional and systematic way. It therefore offers the opportunity for long-term and lasting value enhancements.
The selection of the funds
The basis for this purpose is a database, which contains comprehensive and permanently updated information about a great number of most diversified share funds from the different regions and investment classes. The funds must fulfill certain basic requirements, such as an experienced fund management, a minimum fund volume of Euro 50 m., at least a three-year fund history, have no general risk limitation and many other prerequisites. The funds qualified according to this first selection are then subjected to a second analysis, which is essentially based on performance- and risk criteria, such as the relative performance in relation to the benchmark and performance continuity, whereas the individual factors are weighted discriminatively. The objective is, to respectively filter out the three best funds from each of the regions (Germany, Europe, USA/North America and Global), which promise the best performance, irrespective of the general market development. In a second step, the further eight best funds are then selected, regardless of their regional affiliation. The objective is to thereby attain a portfolio-concentration of the current top performers.
The allocation of the funds
The allocation of the funds pursues the objective of optimizing the fund selection by new weighting on a monthly basis, and it offers the advantage of a professional system of permanent adjustment of the fund selection which is orientated in accordance with the options of the market. The allocation process is aimed at achieving short-term reaction times to current trends, with the objective, to obtain an additional profit of up to 20% at a medium-term level by over- and underrating of the funds selected in the context of the CORE investment strategy, as compared with an equal rating of the fund selection.
Further information about the investment approach may be found under:
Product Philosophy > Best Select Asset Management
The policyholder has the option to arrange his individual investment strategy by himself. Under the aspect of risk control, he thereby has the option to select a minimum of 60%, and a maximum of 100% of the CORE investment strategy.
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Supplementary investment strategies
Four supplementary investment strategies are available for a combination with the CORE investment strategy. Regarding their contents, the supplementary investment strategies are distinctly structured according to investment types and investment topics, and regarding the chances / risks – mix, they are positioned clearly above the CORE investment strategy. A volatility limit or the stop-loss regulation is not applied here. A fixed share of 10% is allotted to each the supplementary investment strategies available for combination. Depending on if and which supplementary investment strategies are selected, the share of the supplementary investment strategies will therefore amount to at least 10%, and a maximum of 40% of the productive investment.
The supplementary investment strategies can be selected or deselected at the beginning of contract or at any time during the term of the contract free of costs. |
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| The supplementary investment strategies |
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Global Ecology Portfolio |
This supplementary investment strategy invests in securities on a global basis with the main economic emphases on environmental technology, environmental protection, wind energy and other enterprises in the fields of production and distribution of products or services in accordance with ethical ecological principles. Investments of ecological nature have developed into an independent investment field and have gained importance within the last years.
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Global Technology Portfolio |
This investment strategy invests in securities from the technology sector on a global basis. After the boom of the nineties, and the unprecedented decline in prices since the spring of 2000, the technology sector has distinctly stabilized within the last 2 years, and at today’s level, it is again offering real investment alternatives.The objective of this investment strategy is an above average, long-term capital growth. The risk of considerably higher fluctuations in value must, however, be tolerated and accepted here.
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Emerging Markets Bonds Portfolio |
This investment strategy predominantly invests in government bonds of fast-developing nations, which have evolved into an independent investment field within the last years.Characteristic features of the Emerging Markets Bonds are, on the one hand, the rather shorter terms and the considerably higher interest rates, as compared with bonds from industrial nations. This is, however, accompanied by a higher risk due to the structure of the states. This investment strategy is suited particularly well for diversification, and on a medium-term basis, it contributes to a clear increase of overall returns.
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Private Equities Portfolio |
This investment strategy invests in shares of enterprises, which have not been listed at a stock exchange yet. Investments in Private Equities have a long-term character, they are not secured, and therefore have a limited duration. The risk, and among other issues, also the restricted fungibility (negotiability), is counterbalanced by corresponding profit expectations.Within recent years, Private Equities has established itself as an innovative form of capital investment with above - average returns. The investments have thereby developed largely detached from the daily influences and the psychology of the stock markets.
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The additionally selectable security constituent
Every investment combination chosen can be protected by the additionally selectable security constituent.
Premium guarantee:
With the expiry of the policy period as agreed in the policy application, at the latest, however, to the expiry of the 35th insurance year, at least the sum of the contributed premiums shall be provided as policy value. The premium guarantee can already be selected in the policy application, and it can be selected or deselected at any time during the policy period.
Capital guarantee:
With capital guarantee, a definite policy value once achieved during the policy period can be secured as a minimum expiry sum.
The security constituent is backed by investments in Zero-Bonds of issuers of first-class credit standing. The premiums for the security constituent reduce the investment in the selected investment strategy or strategies, they are, however, not connected to additional guarantee costs. The credit standing risk of the issuers is borne by the policyholder, as is the case with every unit-linked life insurance and pension scheme. The security constituent offers a flexible, transparent and cost-effective form of securing assets. |
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