Risk Management by Sensus
We use clearly defined risk parameters to control portfolio risks for our customers. We do not use borrowed capital to leverage the money entrusted to us, and trade small position sizes depending on the market liquidity and the time of day. The individual position risk inherent in our portfolios is reduced by up to 1.5 percent per strategy by means of an additional stop-loss function.
We limit the portfolio’s overall risk by means of sophisticated correlation analyses, and exploit our margins up to a conservative 35 percent. Sensus also observes and analyses market volatilities and takes the degree of fluctuation on previous trading days into account when making future investment decisions. For this, we have developed our own risk management system which is tared and updated daily.
At Sensus, the portfolio management and brokerage areas are strictly segregated and the safety of our clients’ investments is of course guaranteed. The same applies to the contractual partners with whom we collaborate. Moreover, we have taken out a special insurance policy with the reinsurance company Lloyds of London.
Alternative investments are generally geared to the independent development of the share, pension and real estate markets, i.e. they do not correlate with these investments. These products are excellently suited to diversify the overall risk inherent in a traditional portfolio.
Nevertheless, when making alternative investments, your personal investment horizon and risk profile should be taken into account along with the spread and diversification of assets, and these should be discussed with your personal bank or financial advisor.
