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.
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.
FERI uses the three-step manager check to assess the quality and performance of asset managers.
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.
To ensure the success of the investment, FERI provides guidance on risk management processes. These range from the preparation of a risk manual and risk inventory to regular reporting and commentary.
In order to identify the risk sources and their distribution in the portfolio of an investment, FERI prepares a risk sheet, which makes this information transparent and clear. It clearly shows what share of the overall risk is attributable to the individual investment funds, segments and asset classes.
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.
Asset allocation – an overview of the latest market developments. FERI offers optimal, quantitative and qualitative support for decision-making, both in terms of strategic and tactical asset allocation.
FERI’s economic expertise is used in high-profile companies for operational planning and market research and in numerous banks for risk management from an industry perspective. We offer our clients the following services: worldwide economic data; global macro research; global economic, interest rate and currency forecasts; country and sector outlooks; FERI sector rating.
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Markets Update July 2022 – Investment environment remains fragile and risky

Bad Homburg, 7/18/2022
by Dr. Eduard Baitinger
  • Despite slight easing, overriding negative trend continues
  • Turnaround unlikely in the near future
  • Strong US dollar endangers stock markets

Despite the slight easing in equity markets, the overarching investment environment remains fragile and risky. New corona lockdowns loom in China, an energy crisis is increasingly likely in Europe, purchasing power is suffering from inflation and global monetary tightening is increasingly coming through in the "hard" macro data.

Global equity markets are in an overarching negative trend with an almost picture-perfect trend erosion: positive counter-movements cannot compensate for previous losses. So far this year, the markets have systematically seen lower lows and lower intermediate highs. With such trend patterns, further losses are more likely than a sustained stabilisation or countermovement.

When a sustainable turnaround begins depends on various factors:

In the optimistic, but rather unlikely scenario, the central banks manage to sustainably curb inflation and at the same time ensure a "soft landing" of the global economy. Corporate profits stabilise and the tight monetary policy is moderately eased. In this scenario, the current price levels in both equity and bond markets would offer an attractive buying opportunity.

However, a "normal" recession is much more plausible, as the real economy is already noticeably slowed down by monetary tightening. The inflation forecasts do not permit any easing. In this scenario, a turnaround on the markets is unlikely in the near future; at least another wave of selling off would have to be expected.

In a worst-case scenario, a severe global recession could even loom, caused by strong economic imbalances. Triggers could be global corporate and sovereign debt or the inflated Chinese real estate market. In this scenario, the negative trend on the stock markets would continue at least until the end of the year.

Strong US dollar endangers stock markets

The US Federal Reserve gives high priority to fighting inflation. With its rigorous tightening course, it is driving the rapid appreciation of the dollar. However, the strong US currency is also a symptom of the crisis-ridden global economy and increased geopolitical uncertainty. In such times, the dollar is in demand as a safe haven. However, its strength is becoming a strong risk factor for global stock markets. This is because these are dominated by multinational US companies that generate a large part of their revenues abroad and are therefore sensitively affected by the appreciation. Moreover, the US dollar is the world's most important debt currency, and the current development increases the burden on local debtors in their respective currencies.

In the short to medium term, the US dollar should remain strong. In the long term, however, it should show weakness again due to the clear overvaluation. Against this background, global investors with high dollar exposure should be more agile in their currency management.


About Dr. Eduard Baitinger

Dr. Eduard Baitinger has been Head of Asset Allocation in the FERI Group since 2015. He is responsible for quantitative asset allocation at FERI Trust, where he also manages and coordinates numerous research projects. In close coordination with the FERI Board of Directors and Chief Investment Officer, Dr. Heinz-Werner Rapp, he also represents the investment strategy of the FERI Group and its communication to clients and customers of FERI.

Before joining FERI, he was a research assistant at the University of Bremen and financial analyst for an asset manager. In 2010 he completed his studies at the University of Bremen, accompanied by a stay abroad in New York, as a graduate economist. In 2014, Eduard Baitinger received his doctorate with distinction on new approaches to quantitative asset management. Dr. Baitinger publishes regularly in academic journals and acts as academic reviewer.

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.



Media relations contact

Katja Liese

Member of the Management Board

Head of Press & Communications

T +49 (0) 6172 916-3192

F +49 (0) 6172 916-1192

presse@feri.de

FERI AG

Rathausplatz 8-10

D-61348 Bad Homburg

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