Berenberg Asset Manager on a variety of computers

Risk strategies

Duration protect overlay 

Our duration protect overlay hedges bond portfolios systematically and dynamically against unexpected market movements – in particular when interest rates are rising. The starting point for this strategy is to define the duration of the underlying portfolio. Using liquid interest futures and based on a quantitative model, hedging positions are built up gradually through interest rate derivatives.

Equity protect overlay 

Our equity protect overlay uses derivatives to protect the value of portfolios when stockmarkets are falling. When markets are rising we can remove the overlay strategy so that the portfolio can participate fully in the rally. We structure the equity protection overlay to the meet the specific risks of the underlying equity investments, and monitor and manage the positions continually.

Currency protect overlay 

Our currency overlay strategies are designed to hedge the foreign exchange risk arising from investments and transactions in the financial markets. These include the areas of real estate, shipping and aircraft as well as any ongoing business liabilities in a foreign currency. We use quantitative models to determine the price trends in the foreign exchange markets and buy forward contracts to hedge the currency risk.

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