Active managers specifically try to beat the general market. To achieve this, they have to make active bets and overweight or underweight certain securities. This, in turn, can be approached in very different ways, either by focusing on fundamental analysis by analysts or by developing a systematic, rule-based methodology. However, a combination of the two approaches is also often found. In our series, we highlight selected active managers. OLZ belongs to the category of systematic active managers.
Since OLZ was founded, risk optimization has been the focus of the asset manager and is reflected in its DNA. True to the OLZ motto: "More returns through lower losses".
The scientific systematics of a long-term and risk-based investment approach is what sets OLZ apart from the standard in the financial industry. Diversification and long-term investment success take precedence over quick profits. The data-based OLZ minimum risk approach reduces portfolio fluctuations and losses in value without diminishing long-term return prospects.
In order to construct an efficient portfolio and thus lie on the so-called efficiency curve, it requires return forecasts for all securities in question, explains OLZ. One exception is the so-called "ex-ante minimum variance portfolio", the portfolio with the lowest risk. Risk forecasts that can be made more reliably and with less uncertainty are sufficient for this portfolio.
"This is exactly where we come in with our minimum variance approach. We forecast the risk characteristics for each individual share within a share universe and derive an optimally composed portfolio from this, which also takes into account the correlations between the shares," says Michael Frei from OLZ.
The OLZ minimum variance approach is aimed at the portfolio that minimizes risk and is the only portfolio that does not require any return forecasts.
The investment process is based on the three scientifically proven return drivers low risk, quality and momentum. The OLZ model calculates the individual factor scores and selects 25 stocks with the most attractive low risk, quality and momentum characteristics. The result is a portfolio diversified across sectors and regions, which avoids cluster risks through the equal weighting of equities.
Implementation is optimized and cost-efficient, either through proprietary funds or directly through individual securities. The portfolio is not only risk-optimized and diversified, but also takes strict sustainability criteria into account.
OLZ's approach serves both institutional and private clients. It not only offers equity mandates, but also bond mandates and mixed mandates using the same methodology.
The cooperation between ZWEI Wealth and OLZ goes back more than 10 years. The management of the two companies regularly exchange information and advise clients together. OLZ's ZWEI Wealth Provider Rating of 3.6 is very good and reflects the asset manager's experience, specialization and good governance.
OLZ is also committed to transparency and maintains over 10 standing offers in various risk profiles (Fixed Income, Yield, Balanced, Growth & Equity) on the platform.
OLZ's offerings are also available in a package with selected integrated custodian banks, with many advantages for clients.