Dr. Julius Agnesens
Head of Investment Solutions
& Member of the Executive Board
Finreon Premium Solutions - The new range of solutions for high net worth individuals, family offices and foundations.
The investment needs of high net worth individuals increasingly match those of large institutional investors. Finreon Premium Solutions offers a range of solutions tailored specifically to the needs of this exclusive client group.
Based on scientifically sound concepts and many years of practical experience with institutional clients, Finreon Premium Solutions offers investors access to professional and exclusive investment strategies - you invest like the leading institutional investors.
Finreon Premium Stable Income is a defensive equity investment with the objective of generating stable, regular income with moderate capital fluctuations. A portfolio of high-dividend quality stocks enables robust growth of the invested capital, while risk management is used to avoid major losses of capital.
Complex challenges – The market environment has changed in recent years. Today, additional risks have to be taken in order to generate the desired returns. Wealthy private individuals and family offices are confronted with complex challenges in asset management.
Capital preservation & steady earnings – The preservation of capital for one’s own future as well as for future generations is central to many wealthy private clients. This requires robust portfolios that can successfully survive in a constantly changing market environment.
Invest like institutional investors – The investment needs of wealthy individuals and family offices are increasingly aligned with those of large institutional investors. Experiences and know-how from the institutional world can be transferred to the portfolios of private investors.
Importance of the asset class equities increases - For many years it was possible to generate returns without having to take substantial risks. In the current investment environment, however, many investments no longer yield satisfactory returns. Investors are forced to take deliberate risks in order to generate positive returns.
Participation in economic growth - The economy as a whole is experiencing continuous, positive growth over the long term. This is driven by corporate earnings growth. Shares and their dividends are very well suited to participate in the long-term positive development of the overall economy.
Stable income through dividends - The dividend yield is a simple and efficient way of skimming off a considerable part (approx. 40%) of the profit yield and generating continuous income.
Equities are subject to substantial risks - Investors can generate attractive returns with high-dividend equity portfolios. However, there are substantial risks associated with equities as an asset class - in particular the risk of major asset losses in the event of crashes.
Moderate fluctuations of the invested capital - For this reason, Finreon Premium Stable Income combines the selection of high-dividend quality stocks with a defensive portfolio construction and systematic risk management. Risks are only taken if they are acceptable to the investor.
Proven methods - The investment approaches used by Finreon for stock selection, portfolio optimisation as well as risk management are established and have been used successfully by institutional investors for many years.
Step 1: Selection of quality stocks - On the basis of patented Finreon strategies, quality stocks are selected according to investment styles (factors) proven in science and practice.
Step 2: Focus on high-dividend stocks - Within the selected portfolio, a special focus is placed on high-dividend stocks to increase the robustness of the returns.
Step 3: Defensive portfolio construction - Using established methods of portfolio construction, the portfolio can be structured more defensively. This can reduce the fluctuations of the invested capital.
Step 4: Risk overlay - Based on state-of-the-art risk measurement, the equity exposure of the portfolio is controlled. Risks are only taken if they are acceptable to the investor. The result is a robust, high-dividend portfolio with regular income and reduced, moderate capital fluctuations.
Stable, regular income - The selection of high-dividend quality stocks using patented strategies helps to achieve attractive performance characteristics. A distribution of approx. 5% p.a., which is significantly higher than the average dividend yield of the stock market, ensures steady yields and a stable income.
Moderate fluctuations - Thanks to the defensive portfolio construction and systematic risk management, the fluctuations of the invested capital are limited to a moderate range. The maximum losses in value can be significantly reduced compared to conventional investments.
Efficient implementation - The implementation takes place within a proven UCITS structure (fund). Investors can choose from different unit classes, such as distributing, accumulating and currency-hedged.