Fund profile: Bonds through the prism of equities
Tue Dec 4, 2012
The German investors tend to be as conservative as they come
– and as a result they shun volatile equities in
favour of the stability of bonds.
Bonds are the largest asset class in German institutional
portfolios, but their share has shrunk from 74% in 2011 to 46%
at present, according to Union Investment's latest annual risk
survey of 106 investors. This is because even bonds are no
longer seen as being a risk-free asset class – because
of interest rates being so low and the increased possibilities
of sovereign default.
Dr Uwe Rathausky (pictured) founded Gané
Aktiengesellschaft with Henrik Muhle in 2007 as an investment
partnership and the duo has developed a strategy which views
equities through the prism of bonds.
"For us, shares are a kind of equity bond," according to
Rathausky. He adds: "The future coupon is dependent on
ISSN: 2151-1845 / CDC10004H
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