Regular Income from Gold with the Risk-Controlled Finreon Golden Income Strategy
In a capital market environment shaped by structurally low real interest rates, increasing uncertainty, and geopolitical tensions, traditional sources of income such as bonds or dividend-oriented equities are reaching their limits. With the Finreon Golden Income® strategy, Finreon responds to a very concrete need of investors: the desire for steady, regular income combined with high diversification and risk control.
In this context, gold has long played an important role in many portfolios as a hedging and diversification instrument, yet as a physical asset it does not generate ongoing income. This is precisely where the Finreon Golden Income® strategy comes in. The objective is to combine the stabilizing properties of gold - store of value, crisis resilience, and low correlation with traditional asset classes – with a systematic and steady source of income.
In our view, the gold volatility premium represents a structurally attractive, yet largely untapped, source of return. Moreover, as a spin-off from the University of St.Gallen, it is Finreon’s ambition to consistently translate academic research into investable strategies. The company therefore aimed to develop an investment solution that is scientifically robust, transparent, and efficient. The Finreon Golden Income® strategy is the result of this philosophy.
Regular income from gold with risk-controlled Finreon Golden Income® strategy
Based on the Finreon Golden Income® strategy, Finreon has launched the Finreon Golden Income fund together with Universal Investment. Just a few weeks after its launch, the fund's volume already exceeds 140 million dollars. With its systematic volatility strategy on gold, the new fund offers investors exclusive access to the gold volatility premium. Investors benefit from the characteristics of gold as an asset class while receiving regular attractive returns. Moreover, the fund strategy also has a low correlation with traditional asset classes and therefore offers a unique opportunity to improve the diversification of investment portfolios and optimise the risk/return profile.
«The Finreon Golden Income® strategy combines the steady collection of the gold risk premium with a sophisticated risk management mechanism. The fund strategy is based on the systematic sale of call and put options on gold and continuously limits the risk of loss by concluding reinsurance transactions. We believe that with this new fund, we can offer a unique solution that has not yet been available on the market», explains Ralf Seiz, CEO of Finreon and lecturer at the University of St.Gallen.
«In this way, we create an innovative investment solution that, as a largely uncorrelated income component, has a place in every professional investment portfolio,» says Ralf Seiz. With this new fund, Finreon is expanding its broad range of opportunity solutions. «The individual strategies complement each other and give investors efficient access to steady returns based on state-of-the-art investment solutions,» says Seiz. The Finreon Golden Income Fund is already the fifth fund Finreon has launched with Universal Investment.
Finreon, a spin-off from the University of St.Gallen (HSG), specialises in developing innovative investment solutions. Finreon's solutions are always based on specific customer needs and the latest findings from financial market research.
Disclaimer:
This publication is a marketing communication and does not constitute a recommendation to buy or sell shares or units in investment funds. Investment decisions should only be made on the basis of the current sales documents (basic information sheet and sales prospectus, which also contains the sole relevant investment conditions, as well as annual and semi-annual reports, if published), which are available free of charge from Universal Investment and on the Internet at https://www.universal-investment.com/de/. Past performance is no guarantee of similar performance in the future. This cannot be predicted. A summary of your investor rights can be found at Investor Rights | Universal Investment. We would also like to point out that Universal Investment may decide, in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU, to lift the restrictions on the distribution of fund units in EU member states for funds for which it has made arrangements as the management company, in particular by making a flat-rate offer to repurchase or redeem all corresponding units held by investors in the relevant Member State.
