The risk premiums on financial markets form the most sustainable of all possible sources of return for investors. Because the investment return attainable for the acceptance of systematic risks is based not on the temporary market inefficiencies but on the central economic mechanisms of the risk transformation on financial markets.

However, the size of financial market risk premiums is time-variable, it varies with the risk aversion of the investors and is thereby an expression of the “handled” tendencies and expectations. Active investment strategies for adjusting to these cyclical fluctuations of the risk premiums are suitable for the systematic achievement of absolutely positive returns.

Our conditioned asset pricing model GLOCAP captures the dynamics of the risk premiums on financial markets with high accuracy. The model works satisfactorily for years as a decision-making basis in the context of our Absolute Return Investment Funds.