FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 15 billion euros, making it one of the largest providers in Germany.
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In institutional asset management, FERI offers a broad range of asset management services for institutional investors. Our investment specialists have many years of experience in all asset classes and follow a multi-asset approach ranging from the development and implementation of individual investment strategies to quantitative risk management and control.
FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 15 billion euros, making it one of the largest providers in Germany.
For more than 20 years, we have been offering our clients individually tailored risk management solutions. Market risks are actively managed according to risk and return parameters jointly defined in advance.
FERI is a byword for comprehensive, individual, transparent and sustainable advice and support for private clients. With over 30 years of experience, we offer private investors a wide range of asset management services.
For us, your requirements and needs are the basis for planning and optimising your asset structure. We always keep an eye on all legal and tax aspects and try to bring about improvements for you. As we work strategically on a long-term basis, we place a strong focus on comprehensive future and succession planning. Foundation consulting is also part of our strategic asset structuring.
The FERI family office is the strategy advisor for your assets. We offer services ranging from strategic asset planning, implementation consulting and results monitoring and controls, through risk management and asset protection strategies to sustainability consulting.
With the help of an asset liability management study, FERI can show you whether a financing system in its current form is sustainable and whether sufficient risk carriers are available or whether a modification of the system is advisable.
During the transition to a sustainable future, FERI guides and supports you in the implementation of a sustainability concept and in the implementation and further development of existing solutions.
FERI’s comprehensive support ranges from optimal asset allocation and investment planning to appointing managers, reporting, monitoring and controls. Clear structures always ensure well-documented decisions and transparent investments.
FERI carries out a cost check in three steps and determines the costs for mandates, depositaries and investment management. In times of persistently low interest rates, these are a key factor in the performance of any portfolio.
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FERI evaluates current portfolios in terms of expected returns and risk and checks whether the allocation still meets the requirements regarding yield and available risk budget. In addition, FERI presents you with alternative portfolios that promise higher returns with the same risk or offer similar opportunities for returns with reduced risk.
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FERI offers its clients the entire process of investment consulting and has continuously developed it since the 1990s. Thanks to our extensive experience, self-developed research and analysing tools and the access to around 230 employees in all areas of the investment process, we create significant added value for our clients through our range of consulting services.
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Economics Update July 2022 - Fed monetary policy: a caesura, but not a paradigm shift

Bad Homburg, 7/4/2022
by Axel D. Angermann
  • Fighting inflation has absolute priority for the time being
  • Conflict between inflation and full employment targets for the first time in 20 years
  • Monetary policy will tolerate higher inflation rates in the long term

The fact that the US central bank, the Fed, is giving absolute priority to fighting high inflation and is prepared to make further drastic interest rate hikes in the coming months was overdue and not surprising in view of an inflation rate of more than 8 percent in the USA. Nevertheless, the decisions and the verbal statements of various members of the Federal Open Market Committee (FOMC) mark a caesura in monetary policy: for the first time in at least twenty years, the Fed again finds itself in a conflict between the goal of price stability on the one hand and the goal of full employment on the other. The monetary policy measures necessary to reduce the high inflation rates will in all likelihood not only dampen overall economic activity, but trigger a recession, the consequence of which would be rising unemployment rates.

Inflation has deeper causes

By contrast, the three predecessors of current Fed Chairman Powell - Alan Greenspan, Ben Benanke and, most recently, Janet Yellen - acted in an environment in which there was at least apparently no conflict of objectives between fighting inflation and positive macroeconomic development: Whatever the central banks did to stimulate the economy as a whole - and that was no small feat, as the tenfold increase in the Fed's central bank balance sheet since 2008 alone proves - it was not directly reflected in higher prices on the goods and services markets. The fact that asset prices - especially share prices - rose sharply in return was just fine with the players on the financial markets, and not least with the many private investors. The fact that the years of inflating the money supply laid the foundation for the current inflation problems therefore aroused some displeasure at best in academic circles. Only when real shortages appeared on the markets in the course of the Corona pandemic and the resulting supply chain disruptions did the high liquidity also break through on the goods markets and lead to rising inflation rates. The drastic increase in commodity prices since the beginning of the year as a result of the Ukraine war further intensified this effect, but in itself is by no means the cause of the high inflation.

Conflict of objectives remains

Now those responsible for monetary policy have to make difficult decisions again, because rising interest rates to fight inflation will have negative consequences for the economy as a whole. In the current environment, this decision should not be too difficult because persistently extremely high inflation rates are also detrimental to macroeconomic stability in the long run. However, the inherent conflict of goals will not disappear in the foreseeable future, as even ECB chief Lagarde recently admitted. However, it is not to be expected that the central banks will carry out a fundamental paradigm shift and in future primarily strive to achieve the inflation target: the Fed announced only two years ago that it would tolerate higher inflation rates. In view of the financing of the high national debt, it seems at least conceivable that the central banks are not interested in permanently high interest rates. This is also one of the reasons why permanently higher inflation rates must be expected even after the end of the current exceptional situation than in the twenty years before the Corona pandemic.


About Axel D. Angermann

As Chief Economist of the FERI Group, Axel D. Angermann analyses the economic and structural developments of all markets that are important for asset allocation. This data forms the basis for the strategic orientation of FERI's asset investments.

Angermann has been responsible for the analyses and forecasts prepared by FERI for the overall economy and individual sectors since 2008. He joined the company in 2002 as an industry analyst. His professional career began at the Max Planck Institute for Economics and the German Chemical Industry Association. Angermann studied economics in Berlin and Bayreuth.

About FERI

Founded in 1987 and headquartered in Bad Homburg, Germany, the FERI Group has developed into one of the leading investment houses in the German-speaking area. FERI offers tailor-made solutions for institutional investors, family assets and trusts in the following areas:

The FERI Cognitive Finance Institute was formed in 2016. It is the strategic research centre and creative think tank of the FERI Group. The Institute focuses on innovative analyses and the development of methods for long-term oriented economic and capital market research. 

FERI and MLP currently manage assets of about EUR 56.6 billion in the Group, including EUR 15.4 billion in alternative investments. The FERI Group is headquartered in Bad Homburg and has locations in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.



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