The european financial regulation AIFM stipulates that an alternative investment fund (AIF) must be managed by an AIFM, licensed and supervised by a national supervisory authorirty, like the BaFin in germany. The AIFM is legally required to act in the interests of the assets managed as well as the owners and market integrity.
Risk management is of key importance in the management of alternative investment funds. The objective is to design and set up an early warning system, enabling recognition and assessment of risks and procedures for the reduction of these risks. Deutsche SachCapital achieves this by creating a profile describing and structuring the principal risks to which each individual fund is exposed at the time of setup. Appropriate methods of risk measurement are chosen and these are then validated with the help of stress tests and scenario analyses. Limits are set for the risks identified and measures laid down for action if limits are reached. Ongoing use and control ensures that the risk management system is regularly optimized.
These wide-reaching control procedures ensure that investment assets entrusted to Deutsche SachCapital are always managed in accordance with investment conditions and the relevant legal requirements.
We keep our investors regularly informed by circulation of transparent overviews describing the progress of their investment assets.