Introduction of the investment solution Careful
The committee decided on the securities and their weighting for the new Careful investment solution. The aim is to preserve the invested capital in the long term after deduction of all transaction and administration costs as well as the increase in Swiss consumer prices (“inflation”). Its equity component is 20%, which offers a certain return potential. The majority of the assets, on the other hand, are invested in defensive Swiss investments such as medium-term CHF government bonds, investment-grade CHF corporate bonds and Swiss property funds. The focus is clearly on stability. A 10% allocation to gold rounds off the cautious profile. The gold price is not a “common commodity”. However, its track record for long-term value stability goes back thousands of years. Overall, 92% of the investments are held in Swiss francs, which also greatly reduces the foreign currency risk.
Decisions for existing investment solutions
The committee also decided to make the following changes to the existing range:
- Cautious: New 5% gold and 15% medium-term CHF government bonds at the expense of fewer CHF corporate bonds and USD emerging market bonds
- Balanced: New 8.4% CHF medium-term government bonds at the expense of fewer CHF corporate bonds and USD emerging market bonds
- Brave: 1.6% more USD emerging market bonds at the expense of fewer CHF corporate bonds
The changes to Cautious and Balanced in particular provide additional long-term stability without investors having to forego too much yield potential. In particular, the credit and duration risk of the bonds is reduced. The gold component in the “Cautious” investment solution also offers a certain insurance character: gold remains stable or even increases in value, especially in times of crisis.
Additional ETFs for your own investment solution
Furthermore, the following ETFs are now also available for clients who put together their own ETF investment solution:
- UBS ETF Gold
- iShares Swiss Domestic Government Bond 3-7 ETF
- iShares MSCI World SRI
All ETFs fulfil the strict
and complement the existing range.