premium income



  • Systematic trading approach (no emotions)
  • Returns from bond portfolio and volatility strategy
  • Different volatility strategies, not only PutWrite
  • Short and long vol building blocks in combination
  • Europe/USA exposure 50%/50%
  • Consideration of ESG criteria (Art. 8 funds)


Fund description and investment approach

The Premium Income fund pursues the objective of systematically skimming volatility risk premiums from the equity sector in order to provide investors with an alternative (beta) source of return. By combining different strategy building blocks, a diversified portfolio is constructed to generate predominantly independent returns. As an underlying investment, the fund invests primarily in bonds with good credit ratings and short to medium maturities. The fund does not follow a benchmark. This fund promotes environmental and/or social characteristics within the meaning of Article 8 of the Disclosure Regulation (Regulation (EU) 2019/2088).

Tarek Saffaf

Fund advisor

Phone: +49 69 13387650

Fund structures by asset classes
Bonds 86.96%
Fixed Term- & Time Deposits / Loans 6.57%
Cash 5.76%
Cross Currency Futures 1.32%
Options 0.02%
Other Claims / Liabilities -0.63%
Equity-Index Options -0.40%
As at: April 2023
Source: Universal-Investment-Gesellschaft mbH
Currency structure incl. derivatives

Währungsstruktur inkl. Derivate Premium Income Fonds - Stand April 2023

As at: April 2023
Source: Universal-Investment-Gesellschaft mbH
Fixed Income by country

Renten nach Auflageland Premium Income Fonds - Stand: April 2023
As at: April 2023
Source: Universal-Investment-Gesellschaft mbH

Ratios based on Fund assets
Coupon 1.36%
Yield 3.19%
Duration Weighted Yield 2.98
Earnings Yield 1.86%
Maturity Date (due date) 0.74
Macaulay Duration (due date) 0.75
Modified Duration 0.73%
Effective Duration 0.73%
Fixed Income Rating AA+

As at: April 2023
Source: Universal-Investment-Gesellschaft mbH

FuND data

End of Financial Year 31.12.
Fund Domicile: Deutschland
Fund advisor/
Renell Wertpapierhandelsbank AG
Fund Management: Tungsten Capital Management GmbH
Capital Managmenet Company: Universal Investment Gesellschaft mbH
Custodian: Société Générale
Currency Fund: EUR
Utilization of Income: accumulating
Effective Issuing Price Surcharge: 0.00%
Management Fee: 0.74%
Custodian’s Fee: 0.21%
Performance-Fee p.a.: 10%, HWM, Euribor(1m)+3%
Source: Universal Investment Gesellschaft mbH
Monthly comment April 2023

The capital market environment has calmed down significantly again following the banking turbulence last month. Following intervention by central banks, regulators and finance ministries, the turbulence in the banking sector subsided more strongly. Volatility, as measured by the VIX, subsequently marked a new low for the year.

One can clearly see: Interest rate differentials are erupting at various points in the capital markets, causing sharp fluctuations in capital flows. This was seen most clearly at U.S. banks. The flight out of individual institutions’ deposits, as recently seen again at First Republic Bank into money market funds or into short-dated bonds yielding around 5%, will continue and recur as long as interest rate differentials for deposits at banks diverge so glaringly. In an environment of inflation rates of over 5%, the high volume of savings has no choice at all. This also applies to European banks. They will have to raise their interest rates on deposits significantly in order to hold on to capital.

The stock markets continue to be capped by the interest rate trend because inflation rates and escalating geopolitical risks are severely limiting the prospect of falling interest rates. Yields in major currencies continue to drift higher. All in all, however, the inflation figures and the labor market data suggest that the U.S. central bank will take a milder approach. The quarterly results published so far, most of which were better than expected, also have a supportive effect. The EuroStoxx 50 Index and the S&P 500 Index gained 1.8% and 1.6%, respectively, last month.

The Premium Income fund lost -0.40% over the period. While the Bond portfolio and the PutWrite component posted gains, Relative Value suffered losses. Volatilities in the individual stocks were too low. Among the biggest losers were positions on Sanofi, Lucid and Rivian. In contrast, positions on Adidas and Stellantis developed positively.


As at: April 2023
Source: Bloomberg
Historical performance is not a reliable indicator of future performance.
Performance according to BVI method, i.e. without taking into account the front-end load. Costs incurred at fund level (e.g. management fee) have been taken into account. Costs incurred individually at customer level (e.g. custody account fees, commissions and other charges) have not been included in the presentation and would have a negative impact on performance if included. Custody account fees can be found in your bank’s list of prices and services. The benchmark index is for information purposes only and does not constitute an obligation on the part of the fund manager to replicate or match the index or its performance.

Fund news

Monthly comment Premium Income Fund March 2023

Monthly comment March

After a strong January, the capital markets showed their volatile side in February. The first half of the month saw a continuation of the positive start to the year, although the pace of increase slowed considerably.

2023 UCITS Hedge Awards Winner

At the UCITS Hedge Awards 2023 of the renowned British trade magazine “The Hedge Fund Journal”, the Premium Income Fund was awarded “Best Performing Fund over 3 Years” in the category “Short Volatility (Quantitative)”.

Falling equity risk premiums: there are alternatives again


Interest rates are back, to the delight of all bond investors. “There is no alternative” was the bulls’ argument on the stock market for a long time. Dividend stocks were considered to have no alternative …