Hamburg / Frankfurt am Main, October 6 2015
First Private Investment launches absolute return strategy
Fund in a target range of four to six per cent p.a. since inception
FO Infoportal for professional investors and advisers now available online
Honestas and Universal-Investment already set new standards in investment solutions for private investors three years ago with the segment fund. The master fund vehicle, which has been successfully used in institutional management, is giving direct access to the services of the Hamburg-based family office and the exclusive mandates of individual managers/advisers. There is no minimum investment volume.
Investors highly appreciate this innovative family office concept that combines individual management strategies without having recourse to a fund of funds solution. To date, assets under management in the fund have already reached close to EUR 50 million. The Honestas owners also hold investments in the fund. “Our own significant investments in the fund ensure that our interests are fully aligned with those of our investors“, says Stefan Kirchner, managing partner of Honestas.
Returns on target
Since inception, the fund returned an average 4.6% p.a. “As a good complement to the direct mandates of Aramea and Flossbach, the new absolute return mandate is ideally placed to optimally exploit current opportunities in the market,” explains Kirchner.
Ensuring consistent performance is a clear priority for Honestas. As a consequence, risk in the fund has been very low risk since inception: the average volatility was 2.46% with a standard deviation of 0.16%
As part of its main responsibilities, the family office monitors the management activities at the overall fund level, actively manages asset allocation and adjusts the risk budgets. Since the managers are not permitted to invest in illiquid instruments or funds – with the exception of ETFs – Honestas can calculate the returns and risk metrics of the individual segments on a daily basis.
High transparency for investors and advisers is a top priority for Honestas. On the website of the FO Vermögensverwalterfonds, the new info portal contains detailed information on individual segment allocations and the selected managers/advisers. It also allows the preparation of individual family office reports.
Fund: FO Vermögensverwalterfonds
WKN / ISIN: A1JZLG / DE000A1JZLG8
Fund category: Defensive balance fund (asset management)
Fund partner: Honestas Finanzmanagement GmbH, Hamburg
Investment company: Universal-Investment-Gesellschaft mbH
Custodian: Joh. Berenberg, Gossler & Co. KG
Unit type: Distributing
Ongoing charges: 1.49 %
Segment I: Aramea Asset Management AG / Dynamic fixed income
Segment II: Flossbach von Storch AG / Value strategy
Segment III: First Private Investment Management KAG mbH / Absolute return
Performance fee: 10% of the return in excess of the 4% p.a. hurdle rate, however no more than 5% of the separate account’s average value over the accounting period. This fee is only calculated for the part of the incremental value that exceeds both the highest NAV ever achieved at the end of a calculation period and the value at the inception of the separate account or the respective asset class (“high water mark”).
Honestas Finanzmanagement GmbH is an independent family office with headquarters in Hamburg. The firm specialises in the holistic optimisation of large fortunes. Its special expertise also includes asset manager controlling. Manager selection is based on an institutionalised process that combines qualitative and quantitative valuation criteria. The core competencies and investment processes of individual managers are analysed based on a proprietary data system that condenses information on the respective service offering. The company also actively manages asset allocation and risk budgeting for its clients. The ongoing analysis and monitoring of asset manager performance as well as sources of return, risk and costs ensure success over the investment horizon. Honestas is a registered financial portfolio manager pursuant to section 32 of the German Banking Act (KWG), a member of the investor protection scheme Entschädigungseinrichtung für Wertpapierhandelsunternehmen (EdW) and a member of the association of independent asset managers Verband unabhängiger Vermögensverwalter e. V. (VuV).
Futher information can be found at www.fo-vermoegensverwalterfonds.de