We assume that the markets for liquid investments will be efficient. We therefore do not engage in proactive trading based on price forecasts; this would only cause unnecessary costs for your portfolio management. In our view, research as a "forecast supplier" is enormously overestimated. The short-term pursuit of alpha is not conducive. On the other hand, we are convinced that in the long-term an optimal and balanced asset structure and a focus on quality are crucial. Consequently, we pursue an active quality and risk management based on our analysis. It is important to us, for example, to avoid cluster or concentration risks at stock or sector level, which can arise in standard market indices. We also aim to exclude chronically unprofitable and unsustainable sub-sectors. If robust and resilient portfolios are managed in this way, there is an active element in the sense that the portfolios have a more balanced composition than a common, capitalization-weighted index. In the case of bonds in particular, the common weighting logic based on market capitalization is absurd because the debt leaders make up the largest share of the portfolio.
