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.
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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 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.
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Economics Update September 2022 – German industry: Structural change at the expense of energy-intensive sectors

Bad Homburg, 9/5/2022
by Axel D. Angermann
  • Strongly above-average increase in producer prices in energy-intensive sectors
  • Structural change has been taking place for many years independently of the war in Ukraine
  • Good reasons for economic policy intervention to curb cost increases

The dramatic rise in electricity and gas prices is hitting the energy-intensive sectors of German industry particularly hard and is exacerbating the structural change already underway at the expense of these sectors. German companies already had to cope with above-average electricity prices before the outbreak of the Ukraine war. The further increase in energy costs is exacerbating the competitive situation and could dramatically accelerate the relocation of production capacities to other locations. This becomes clear when looking at the development of producer prices: Since the beginning of 2021, these have risen by 22 per cent in the industry as a whole. In steel production the increase is 75 percent, in basic chemicals more than 50 percent and in paper production more than 40 percent.

Medium-sized structure reveals disadvantages

Passing on higher costs to customers is more difficult in an economy dominated by medium-sized companies, which is typical of Germany - large companies with considerable market power have advantages in this respect. Where the potential for productivity increases and innovations in industrial intermediate products is limited, there is a gradual shift of production to lower-cost locations outside Germany. This creeping structural change at the expense of energy-intensive sectors has already been underway for many years. While industrial production increased by 1.2 per cent per year during the past upswing (from 2012 to 2018), glass and building materials production recorded only marginal growth of 0.4 per cent per year. For non-ferrous metals and foundries it was 0.6 per cent. The paper industry, steel production and basic chemicals even shrank, the latter by 1.4 percent per year. Speciality chemicals, on the other hand, recorded above-average growth of 2.4 percent per year.

Production location Germany in danger

Abruptly rising energy costs as well as the sudden gas shortage, which could lead to production shutdowns in important sectors such as the chemical industry, thus not only have immediate economic consequences, but also accelerate the structural change already underway. There is a real danger that the affected production capacities will be lost forever once the buyers have (forcibly) switched to other suppliers and these have a potentially higher price competitiveness.

Wise economic policy called for

Economic policy must therefore weigh things up: On the one hand, it is not its task to stop structural change by putting certain sectors of the German economy under species protection. However, in view of the more than 700,000 people employed in the six most energy-intensive sectors, accelerated job losses in these industries would have massive macroeconomic and social consequences. Moreover, nothing would be gained for climate protection either: Although the migration of energy-intensive production would improve Germany's CO2 balance, it would have a negative impact on the global climate - which is what ultimately matters.
The migration of energy-intensive production would improve Germany's carbon footprint, but it would tend to worsen the global climate - which is ultimately what matters - because production would take place elsewhere, where it would be associated with higher CO2 emissions than before in Germany. There are therefore some good reasons to take the competitiveness of German companies into account in energy policy and to prevent an excessive increase in energy prices for companies in Germany.


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 55 billion in the Group, including round about EUR 15 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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