mast image

Special Report

Impact investing

Sections

German institutionals have catching up to do on new strategies – Söhnholz

Related images

  • German institutionals have catching up to do on new strategies – Söhnholz

GERMANY - Strategies such as absolute return, smart beta and socially responsible investing (SRI) may be catching on among German institutional investors, but they are still relatively "underrepresented", according to Dirk Söhnholz, Veritas's new chief operating officer.

Söhnolz worked for his own consultancy, which conducted a survey of about 50 German institutionals, before joining the ETF specialist last week.

In the survey, he said he saw no clear trend toward any single asset class, as German institutional investors' demands were "very heterogeneous".

But he did say that respondents had identified risk management and risk adjustment as their top priorities, and that certain strategies, currently "underrepresented" among German institutionals, would therefore grow in importance.

<

These would include responsible investing, smart beta and alternatives to cap weighting, as well as absolute return, he said.

"In the absolute return sector, I do not necessarily see a trend towards alternative investments, as long-only portfolios are also used," he said.

Söhnholz said the most important question investors now had to answer was who was doing the overlay. 

Speaking in his new role as COO of Veritas, the former managing director at Feri Institutional Advisors, which he left in May 2011, predicted an increased use of ETFs within absolute return portfolios.

But he conceded that he did not foresee larger institutional investors making use of ETFs on a large scale in the near future.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<