The fund aims to provide capital growth by investing in Swiss equities without capitalization or sector limits and with a bias over small & mid caps. The fund invests more that 51% of its assets in equities or equity-related securities. The fund seeks to generate a positive return during rising equity markets passing to a defensive approach during bearish trends in all time horizons. The fund may use derivatives in order to achieve investment gains, reduce risk or manage the fund more efficiently and may have a net equity exposure for more than 100%.
Legal Structure: SICAV Ucits V
Fund Manager: SWM SA
Custodian: State Street, LUX
Reference Currency: CHF
AuM: CHF 12.06 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: A:0.9% B:1.2% C:0.4%
Performance Fee: 10% HWM
NAV as at 30.09.2020: CHF 93.19
CHF A Ist: LU1435247876
CHF B Retail: LU1435247959
CHF C Ist: LU1435248098
Share Type: Accumulation
Targeting investors with a superior risk tolerance who expect capital growth over the business cycle, investing primarily in Swiss equities.
Fund manager insights
During September 2020 the Swissness Fund was up 0.38%, while in the same period the Swiss Performance Index gained 0.52%. The fund started the month with a very high net exposure to equity markets, around 125%. Anyway the holdings exposure remained stable above 95%; this last allocation represents the strategic or core portfolio that in the last months had a very low exposure to the Swiss Market Index, where the 50% of the weight is done by just three stocks (Nestlè, Roche and Novartis). We
still strongly believe in the returns that our 30 names selection could give in the next months in relation to the SMI and SMIM indexes and therefore in the last weeks we made only minor adjustments. Instead we mostly focused on protecting the performance of the fund during bearish phases, mainly selling stock index futures on both SMI and SMIM indexes, and on quickly closing them when we were expecting the market to continue the upside movement. In the first two weeks of September our quantitative and macroeconomic models suggested to hedge the fund in order to avoid regrettable losses, considering also what done so far. As a consequence of these signals we firstly brought the equity net exposure to around 50%
and about the half of the month we reduced it below 10%. The hedge position was built, as usual, by selling stock index futures on both the SMI and the SMIM indexes. In any case in a very complicated international economic context where in the incoming months unemployment and consumer confidence data, infections and intensive care hospitalizations and the US presidential elections will impact the markets, we believe that Switzerland will be still favored by international investors.