STABLE RETURN

Active management – Capital preservation – Wealth creation

Because risk-adjusted Performance makes the difference

Stable Return

We actively seek returns and offer a risk-optimised investment alternative for conservative investors in the low-interest rate environment

We strive for a consistent positive return over a period of two years. Our aim is to be a trustworthy partner for genuine absolute return products for our investors.

With our fund concept, we provide our investors with a risk-controlled access to the opportunities of the global bond, equity, currency and commodity markets independent of benchmark indices.

Saving by itself does not protect against losses

Conventional savings are no longer promising in today's low interest rate environment

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Interest rates on savings products in Europe and around the World have fallen steadily since the financial crisis of 2008. Yields on safe investments continue to come under pressure. As a result, conservative investors are confronted with negative returns.

The returns achieved are no longer satisfactory. Today, saving alone is no longer sufficient to achieve capital gains after adjustment for inflation.

Source: Bloomberg

Inflation eats up the earnings

Capital gains will remain necessary to avoid a loss of purchasing power

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Taking the inflation rate into consideration, the value of savers’ money is steadily declining.

Mario Draghi, President of the ECB, 10. April 2019

“Based on our regular economic and monetary analysis, we decided to keep the key ECB interest rates unchanged. We continue to expect them to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to 2% over the medium term.”

Mario Draghi, President of the ECB, 27. March 2019

“Substantial accommodation is still needed to secure the path of inflation convergence and this is reflected in our past monetary policy decisions … the ECB will adopt all the monetary policy actions that are necessary and proportionate to achieve its objective. We are not short of instruments to deliver on our mandate.”

Thus, saving merely in conservative asset classes as an investment is not financially lucrative.

Source: Bloomberg

Alternatives are necessary

Asset classes with more prospective earnings opportunities also mean a higher degree of volatility

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Achieving an adequate return after deducting inflation is thus becoming increasingly challenging.

Higher-risk asset classes such as corporate bonds, global government bonds or equities offer attractive returns compared to traditional forms of saving.

However, these asset classes are exposed to higher risks. The volatility of an investment can be significant.

Source: Bloomberg

Active risk management is more important than ever

In order to consistently achieve your return target, a reliable and constant risk management process is necessary alongside the continuous search for profitable investment opportunities

Market-independent return

Despite the low interest rate environment and higher market fluctuations, the aim is to achieve a positive return over a period of two years.

Successful history

A successful track record in the management of Absolute Return Multi Strategy funds in times of crisis proves the successful management approach.

Focus on risk management

The focus of the investment policy in the daily management remains on avoiding major declines of the fund price.

Our Philosophy

We are convinced that our dual investment process enables us to identify trends at an early stage, assess them correctly and implement them profitably in the Stable Return Absolute Income Fund.

We are convinced fundamental investors who achieve added value through systematic macro analysis in the active portfolio management.

In addition, we analyse capital market data on a daily basis in order to derive a trend and momentum strategy. This serves both to identify opportunities and to minimize risks in the fund.

Our investment process

Macroeconomic analysis

With our Macro-Scoring-Tool, we determine cyclical forecasts and obtain a strategic view of the perspectives of the various asset classes.

Base Allocation

The fundamental macro and cycle analysis serves as the basis for the selection of global asset classes and themes with attractive risk-return profiles.

Trend and momentum based overlay strategies

The trend and momentum strategies can be short-term investment opportunities or risk-reducing hedges.
The tactical implementation is realized through liquid investment instruments.

Risk management

The risk management is an integrated part of the investment process.
A continuous analysis of the return and risk drivers in the fund is carried out.

Fund

Stable Return Absolute Income Fund

The Stable Return Absolute Income Fund is an absolute return concept and aims for a target return of 2% to 3% p.a. after costs.*

* The return can exceed oder can be below the targeted return and is not to be understood as a guarantee.

The fund management pursues an active and benchmark-free strategy. Our fund concept is not subject to any benchmark indices and can therefore react flexibly and quickly with clear positioning to market changes.

The fundamentally based multi-asset strategy enables the management to generate opportunity-oriented earnings in the global equity, bond, commodity or currency markets by using a variety of instruments, such as individual securities, futures, options, ETFs, CDS or DTGs.

Our proactive risk management is geared towards minimizing drawdowns in difficult market environments. The possible annual fluctuation range of the fund is around 5%.

The Stable Return Absolute Income Fund is a UCITS-compliant, legally protected investment fund.

Fund NameStable Return Absolute Income
Fund CategoryXXX
Fund Advisor
Stable Return GmbH
Fund Currency
EUR
Share Classes
I (Institutionell)R (Retail)
ISIN / SEDOL DE000A2PMXM4 / A2PMXMDE000A2PMXL6 / A2PMXL
Bloomberg TickerXXXXXX
Fund Inception DateOct 1, 2019Oct 1, 2019
Fiscal Year EndOct 1,Oct 1,
Capital GainsDistributingDistributing
Ongoing Fee (TER) 1.20 % p.a.1.70 % p.a.
Performance Fee0 %0 %
Minimum Investment100.000 EURnone
Entry Fee0 %3 %
Exit Fee0 %0 %
Administration CompanyUniversal Investment
CustodianBerenberg Bank

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Fund Documents DE000A2PMXM4 (I) DE000A2PMXL6 (R)
Monthly ReportsCurrent Report

Team

Extensive experience in the management of multi-asset absolute return funds

Christian Frischauf

Christian Frischauf

  • Fund responsibility since 1995
  • Career start in proprietary trading and market making for a major European bank
  • Head of Absolute Return at market-leading international asset management companies
  • Since 2004 Portfolio Manager of Multi-Asset Absolute Return Funds
  • Specialization in macroeconomic analysis and risk management
Alexander Odermann

Alexander Odermann

  • Fund responsibility since 2008
  • Career start in the multi-asset fund management of a market-leading German asset management company
  • Senior portfolio manager of flagship Multi-Asset Income Funds
  • Specialization in emerging markets debt, credit products and global equities

Publications

August 16, 2019
Fundview | Duo von Frankfurter Boutique: „Viele Absolute-Return- Manager halten ihr Versprechen nicht”
July 18, 2019
Universal Investment | Stable Return legt ihren ersten Fonds bei Universal-Investment auf
June 20, 2019
Fonds Professionell | Neue Investmentboutique startet mit Stable-Return-Fonds
June 17, 2019
Private Banking Magazin | Absolute-Return-Fondsboutique geht an Start
June 17, 2019
Das Investment | Absolute-Return-Fondsboutique geht an Start