Sutor Asset Management for the ETF Riester

The ETF Riester (unlike our other products) does not enable you to choose the ETFs. Instead, Sutor Bank decides on the composition and provides the capital guarantee in return. The portfolio allocation and the investment model are monitored by the Sutor Bank investment committee as part of the wealth management and will be adjusted by Sutor Bank if necessary. Further changes in the future are possible.
ETF portfolio

The ETF Riester portfolio is a transparent, straightforward and cost-efficient solution, consisting of ETFs on stocks and government bonds. Your portfolio will be allocated to these funds.

Individual equity ratio

The target equity ratio is calculated on a daily basis for each contract individually. The calculation is based on the remaining term, contributions, portfolio value, and market volatility.

Life cycle management

You will receive your target equity ratio up until 5 years before your retirement date. Thereafter, the life cycle management will begin the monthly linear decrease of the equity ratio.


Equity ratios of Sutor Asset Management's current investment model

According to the investment model currently used by Sutor Asset Management, the equity ratio depends on 4 factors: the current guaranteed capital for pension payments, the current portfolio value, the remaining term of your contract and the expected volatility (= measure of price fluctuations) on the equity market. The calculator allows you to simulate how changes in these factors affect the equity ratio. Please note that Sutor Bank can adjust their investment model at any time.

Funds in the current ETF Riester portfolio

SIN: A1103F
OGC: 0.25%
ISIN: LU1681041627
OGC: 0.23%
SIN: A1J782
OGC: 0.40%
ISIN: LU0925589839
OGC: 0.15%
ISIN: LU0524480265
OGC: 0.15%
ISIN: LU0290357846
OGC: 0.15%

Details of the investment approach

Portfolio composition

The ETF Riester portfolio uses a transparent, straightforward and cost-efficient solution with ETFs on stocks and government bonds. The allocation to both of these funds is rebalanced regularly to achieve the individual target equity ratio. Up until 5 years before their retirement date, ETF Riester customers can achieve equity ratios of up to 100 %, given sufficient buffer. Sutor asset management can change and/or broaden the selection of funds depending on market conditions. A broad diversification across numerous countries and sectors will be preserved.

Individual calculation of the equity ratio

The investment model currently underlying the ETF Riester amends the life cycle model with a daily and contract-specific calculation of the target equity ratio depending on the remaining term, cover ratio and volatility.

Life cycle management

Generally, the investment model follows a term-dependent, contract-specific life cycle model with a phase-out component, which should allow for the highest possible returns, taking into account the legislative aim of capital preservation at the beginning of the payout phase.
Within the framework of this model, a contract-specific risk budget is determined based on various parameters, which determines which part of the accumulated capital can be invested in shares without jeopardizing the legally required capital guarantee at the beginning of the payout phase.
Over the last five years of the accumulation phase an additional phase-out component comes into effect that linearly lowers the maximum equity quota on a monthly basis over the last 60 months by reallocating per month 1/60 of the current equity portfolio into fixed income funds . This phase-out leads to lower fluctuations in the accumulated capital and better predictability of the expected pension payments.

Previous adjustments by Sutor Asset Management

Time Adjustments of the Invest­ment Approach
Nov 2020 New interest curve calculation and associated congruent bond coverage using LU0925589839 (Xtrackers II iBoxx Eurozone Gov. Bond Yield Plus 1-3), LU0524480265 (Xtrackers II iBoxx Eurozone Gov. Bond Yield Plus) and LU0290357846 (Xtrackers II iBox.Box. Bond 25+).
Aug 2020 Change in bonds allocation, step-wise shift into LU0925589839 (Xtrackers II iBoxx Eurozone Gov. Bond Yield Plus 1-3)
Jul 2020 Subdivision of the formerly single stocks ETF, addition of LU1681041627WKN (Amundi MSCI Europe Minimum Volatility) and IE00B8KGV557WKN (iShares Edge MSCI EM Minimum Volatility)
Jun 2020 Reinvestment of the liquidity and sales revenue from retained bond funds based on adjusted investment model with a flexible equity ratio and a shorter 5-year life cycle management at the end of the term.
Mar 2020 Due to extreme fluctuations of risk parameters as well as due to the applicable legal requirements all equity funds were sold. Assets were held in liquidity on an interim basis to be reinvested after the adjustment of the investment model.
Oct 2018 Complete reallocation of the portfolio (new low-cost funds, up to 100 % equity ratio, shorter maturity fixed income component). Removal of all previous funds and replacement with LU1781541179, IE00B2PC0716, IE00B67WB637, LU0908500753, IE00B1W6CW87, IE0032769055, IE00BKM4GZ66, IE00B0HCGV10, LU0290355717 and IE00BCRY6557.
Sep 2017 Removal FR0010037242 (EuroMTS 10-15), LU0444606452 (iBoxx 10-15) and LU0444606536 (iBoxx 15+), addition LU1287023185 (EuroMTS 7-10). Target portfolios at 85.2 % max. equity ratio due to "breathing".
Feb 2017 Removal DE000ETFL011 (DAX) and LU1287023268 (EuroMTS 15+), addition IE00B4MJ5D07 (Dimensional World Equity) and IE00BFG1R445 (Dimensional Global Short-Term Inv. Grade).
Jan 2017 Target portfolios at 89.4 % max. equity ratio due to "breathing".
Jul 2016 Partial restructuring of fixed income allocation, addition of IE0031719473 (Dimensional Global Short Fixed Income) as 22nd fund for short-dated fixed income investment also for contracts with long remaining terms. Target portfolios at 82.5 % max. equity ratio due to "breathing".
Mar 2016 Target portfolios at 87.2 % max. equity ratio due to "breathing".
Oct 2015 Addition of MDAX as 21st fund. Target portfolios at 88.6 % max. equity ratio due to "breathing".
Jun 2015 Adjustment of target portfolios mainly due to "breathing" with the markets, max. equity ratio now at 84.6 % compared to 82.8 % previously. Substituting FR0010037242 (EuroMTS 10-15) for LU0290357333 (iBoxx 10-15).
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