The first priority in Gutmann fund management is risk optimisation. Our fund managers regard themselves as risk managers aiming to achieve the best possible return for an agreed risk profile.
Gutmann pursues a disciplined and transparent approach to fund management based on open fund management architecture. Our focus is on core themes such as asset allocation, fixed income, and equities. On peripheral and special themes we consult with outside partners.
Asset allocation
Asset allocation is the distribution of assets across different asset classes such as fixed income, equities, alternative investments, and cash holdings. The Gutmann investment strategy is best implemented through Gutmann asset management funds of funds. In managing these mandates, the Gutmann fund management employs a dual management structure. A minimum of 80 percent of the portfolio is invested within clearly defined ranges (e.g. 50-30 percent equities, 50-70 percent bonds) in a disciplined quantitative process that is guided by the latest scientific findings. The quantitative model focuses in particular on the optimisation of the risk incurred. The advantage of this process is objective selection criteria and discipline in implementation in the funds. The remaining 20 percent of the portfolio are invested where opportunities arise. Here we seek to benefit in particular from attractive investment options and alternative ideas. Products are selected after careful analyses, which the fund management team carries out with the support of our international research partners.
Fixed income
Our fixed income team manages bond funds composed of different individual securities as well as funds of funds. In bond management, our expertise is focused on European investment-grade bonds. In this segment we manage portfolios based on our assessment of interest rate trends and credit ratings. This assessment is reflected in the funds mainly by the selection of issuers and the tactical rotation of the different bond segments. Our approach is characterised by efforts to keep turnover low by anticipating developments while nonetheless exploiting opportunities and keeping portfolios diversified.
In the funds of funds segment, proprietary and outside bond funds are combined in such a way that they cover a wide segment of a client portfolio efficiently and successfully. All segments of the fixed income universe are taken into consideration.
Equities
Gutmann KAG’s equity fund management pursues an active, long-term investment approach that focuses on fundamentals. Taking a holistic view, we look at individual companies, their long-term development as well as their macroeconomic and political environments. We regard ourselves as "seekers of opportunities and generators of ideas" operating off the beaten track.
For picking investments, we design our own accounting and valuation models and work with a company database created specifically for this purpose.
We value periodic personal contacts with the management of companies we are exposed to. We also have periodic meetings with leading sector analysts and attend local investor conferences.
Our aim is to not only earn the best returns possible but to do so while keeping risk within reasonable limits.
The main focus of our investment universe is on Eastern and Central Europe but we also look at opportunities arising in developed markets.
Independent research partners
The decisions of our fund management are underpinned by forecasts supplied by independent research experts. One of them is Horace Woody Brock, a US trends analyst who also acts as an advisor to the White House. We also receive support from Capital Economics, BCA Research and GaveKal Research – three independent research firms supplying us with macroeconomic analyses and assessments. The scientific basis for our investment decisions comes from the WU Gutmann Center for Portfolio Management at the Vienna University of Business and Economics that was founded and is sponsored financially by Bank Gutmann.
