Finreon and Universal Investment launch systematic multi-asset strategy with capital preservation

Finreon has launched the Finreon Absolute Income Fund in collaboration with Universal Investment. The new retail fund combines a high-quality bond portfolio with a risk-controlled derivatives strategy, dynamically investing in equities and bonds depending on the market environment, while considering portfolio-specific risks. For risk measurement, the fund uses Finreon's established, academically grounded methodologies. In high-risk market phases, these are designed to reduce the allocation to risk-bearing assets, and in lower-risk phases to focus more strongly on higher-yielding investments.

“By dynamically managing exposure to the asset classes of equities and bonds, our new Finreon Absolute Income Fund enables attractive and stable, risk-adjusted returns,’ says Dr Ralf Seiz, CEO of Finreon and lecturer at the University of St. Gallen. “In high-risk phases, the allocations to the individual asset classes are systematically reduced based on proven risk indicators.’ In low-risk phases, the fund participates in market developments through increased exposure.”

The dynamic multi-asset strategy combines a capital-preservation approach that targets a minimum value of 95 percent. On a calendar-year basis, any potential negative performance at the overall fund level compared with the previous financial year-end should not exceed the threshold of 5 percent. “This robust combination reduces drawdowns and ensures the stability of returns across market cycles,” Seiz explains.

“The Finreon Absolute Income Fund is the fourth fund that we have launched together with Finreon, thereby expanding the Finreon Opportunities range. We are delighted to support Finreon in implementing this innovative strategy. Our scalable, future-proof platform is designed to support ambitious fund managers like Finreon in their growth," says Marcus Kuntz, Group Head of Sales & Fund Distribution at Universal Investment.

Finreon is a spin-off of the University of St.Gallen (HSG) that specialises in developing innovative investment solutions. All of Finreon's solutions are based on specific customer needs and the latest findings from financial market research

^{This publication is a marketing communication and does not constitute a recommendation to buy or sell shares or units in investment funds. Investment decisions should only be made on the basis of the current sales documents (key investor information or basic information sheet, sales prospectus and, if published, annual and semi-annual reports), which also contain the sole relevant contractual terms and conditions and are available free of charge from Universal Investment and on the Internet at https://www.universal-investment.com/en/. Historical performance is no guarantee of similar performance in the future. This cannot be predicted. A summary of your investor rights can be found at Investor rights | Universal Investment. We would also like to point out that Universal Investment, as the management company for funds for which it has made arrangements for the distribution of fund units in EU member states, may decide to terminate these funds in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU, in particular by making a flat-rate offer to repurchase or redeem all corresponding units held by investors in the relevant Member State.}