FERI expects demand for alternative investments such as infrastructure, property, private equity and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments worth around 8,5 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 infrastructure, property, private equity and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments worth around 8,5 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.

Sustainability is not only a socio-political imperative. For FERI, it also includes a clear commitment to shared social responsibility as a financial services provider. This is why FERI places the sustainable development goals (SDGs) defined by the United Nations General Assembly (UN) at the forefront of sustainability considerations in all its investment solutions and advisory services. 

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.

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 been continuously developing it since the 1990s. Thanks to its extensive experience, self-developed systems and access to almost 200 employees in all areas of the investment process, FERI creates significant added value for its clients through its range of consulting services.

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. 

Sustainability is not only a socio-political imperative. For FERI, it also includes a clear commitment to shared social responsibility as a financial services provider. This is why FERI places the sustainable development goals (SDGs) defined by the United Nations General Assembly (UN) at the forefront of sustainability considerations in all its investment solutions and advisory 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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Corona Shock: Stock Markets Evaluate New Risk Scenarios

Bad Homburg, 03/17/2020
from FERI
  • Global economy in 2020 with clear recessionary tendency
  • Markets forced to abruptly assess risk
  • Central banks face excessive demands
  • USA threatened by CoViD19 and Trump ignorance

The global stock markets have reacted with sharp price losses to the "corona shock", which is already leading to massive restrictions on economic activity. The expectation of a global recession was priced in rapidly in just a few trading days. Currently, almost all stock markets are showing clear "oversold" signals. This usually creates a good basis for rapid technical recoveries and potentially favorable buying opportunities. "However, as the extent and duration of this global recession is difficult to estimate, extreme caution is currently necessary", warns Dr. Heinz-Werner Rapp, CEO and CIO of FERI. Both a short slump ("V-shape") and a long and deep recession ("U-shape") are possible. Uncertainty about the further course of developments requires thinking in scenarios for the time being.

Scenario 1 - Short Plunge

If the pandemic dies down within a few months (as the example of China would suggest), a significant recovery of the global economy could be expected as early as the second half of 2020 - not least because of the massive global stimulus packages. "In this scenario, the stock markets could soon begin a sharp upward trend again," says Rapp. For investors, exceptionally attractive buying opportunities would then soon be available.

Scenario 2 - Deep Recession

Should the containment of the pandemic require massive measures beyond the middle of the year, which would inevitably lead to a prolonged "lockdown" of economic activities, the numerous aid measures taken by central banks and governments would initially fizzle out. According to FERI, this scenario would lead to a deep and complex global recession. In this case, price losses of 50 to 70 percent would be possible at peak times, as in the financial crisis of 2008. "If this happened most investors would have to largely write off the investment year 2020," stresses Rapp.

Taking a Look at America

The capital markets currently seem to be moving closer to the second scenario, which according to FERI estimates has a probability of at least 45 percent. If this remains the case, investors would face further price losses, as the consequences of a prolonged global recession have not yet been fully priced in. In the coming weeks, much will depend on how the USA meets the challenges posed by CoViD19. "Due to its patchy health care system, the USA could be hit harder than many people have assumed. Also, President Trump's long ignorance in dealing with the corona virus is hardly helpful," warns Rapp.

Central Banks Increasingly Overburdened

While the ECB has not yet found an effective answer to the corona shock, the FED has already pushed forward with panicky interest rate cuts twice. In both cases, however, the stock market reacted negatively, which indicates that monetary policy measures are becoming increasingly ineffective. From now on, the focus will be on fiscal policy measures that are being prepared worldwide. Even the Trump government has now declared a national emergency, which gives the US room for far-reaching countermeasures and financial aid programs.


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 have assets of EUR 39.2 billion under management. A total of EUR 8.5 billion of these assets are alternative investments. The FERI Group is headquartered in Bad Homburg and has offices in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.



Media relations contact

Katja Liese

Member of the Management Board

Corporate Strategy, Marketing and 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

Dr. Heinz-Werner Rapp
Dr. Heinz-Werner Rapp
Dr. Heinz-Werner Rapp
Dr. Heinz-Werner Rapp
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Katja Liese
Member of the Management Board
Corporate Strategy, Marketing and 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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Contact
Katja Liese
Member of the Management Board
Corporate Strategy, Marketing and 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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