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Interest rates are rising, and banks are advertising their call money accounts again. In view of an inflation rate of more than six percent, these are still destroyers of purchasing power. “If you want to compensate for the loss of purchasing power, you can hardly avoid equity investments”, says Swen Köster, Head of Sales, Asset Management Solutions “The half-year balance of the Moventum portfolios shows that even defensive products have performed better than reputable overnight money offers.”

After the times of zero and negative interest rates, 3.6 percent on call money sounds like a relief and a real opportunity to park money. “But very few investors take into account that during the negative interest rate phase the inflation rate was only around two percent”, says Köster. “Today it is seven per cent.” So instead of a real interest rate of minus 2.0 to minus 2.5 percent, investors today accept a minus of three or more percent.

The Moventum portfolios show results that are significantly above the overnight interest rates. The results range from 3.88 percent for the Defensive portfolio to 10.63 percent for the international Growth portfolio. “And this at the half-year, while the overnight interest rates are per year and often only apply to promotional periods”, says Köster.

However, it is not only in view of the current good development on the markets that equity investments are the better alternative. In the Moventum portfolios managed since 2003, the average annual returns range from 3.45 percent in the defensive portfolio to 7.37 percent in the offensive portfolio. The private wealth portfolio is a special case, with returns since the beginning of the year at 2.45 percent. “Here, the focus is not on the return, but on the lowest possible volatility with positive performance at the same time”, says Köster. “With a volatility of 4.19 per cent, this has again been achieved very well.”

“So, anyone who wants to compensate for the loss of purchasing power due to inflation still cannot avoid the capital markets”, says Köster. “And those who rely on mixed portfolios significantly reduce the risk.”