Risk overlay programs seek to minimize the impact of unfavourable moves in currency, stock, bond and commodity markets. Adverse market conditions have direct effect on clients’ net worth.

Dukre firmly believes that, over the medium term, limiting losses and preserving value in adverse markets is of paramount importance. This way, client can reduce risk and volatility of their exposure.

We offer risk overlay on stocks, currencies, bonds and commodities to institutions, families and private investors. We provide a diversified choice of programs that range from pure protection to active management, including alpha creation.

OUR PHILOSOPHY

We provide an independent and objective decision making process to our clients. So, we utilize computerized mathematical and statistical models as basis for unbiased, non emotional signals.

We prefer tailor-made solutions to a standardized approach. We propose a personalized approach to each client. We adapt our proposals and models to individual specific needs.

We try to generate cost effective solutions. In particular, we attempt to minimize costs of selling forward foreign currencies with high interest rates.

We adopt a medium to long term approach. We aim at creating value over a three to five years horizon.

DIFFERENT TYPES OF PROGRAMS

Risk overlay programs manage a portfolio of derivative instruments (future contracts, options, swaps) that are associated (or ‘overlaid’) with a portfolio of underlying cash assets or liabilities.

These programs are designed to either hedge market risks that arise or modify the asset allocation of the underlying portfolio.

In the first case, the goal is to protect the value of cash assets from unfavourable price moves and, depending on mandate definitions, participate in favourable trends. Some programs are purely defensive. Others can be more actively managed. A few programs seek to generate ‘alpha’ on specific assets.

In the second case, the objective is to shift the tactical composition of underlying assets. Such moves allow portfolio managers to switch allocation of assets rapidly and with lower transaction costs, without being forced to liquidate part of the portfolio. They also enable managers to lock - in unrealized paper profits and provide more time for selecting stocks, sector or assets.

We design personalized programs in stocks, currencies, bonds, commodities based on individual clients’ preferences.