Mutual fund open to all investors.

Real estate as an investment

The Swiss real estate market has proven to be extremely stable in recent decades. With real estate investments as an investment opportunity, risk-adjusted returns could often be better than with other asset classes. Swiss real estate is considered safe and has proven to be an interesting asset class for many investors due to the country's stability. An investment in attractive real estate investment products is particularly worthwhile in phases with extremely low interest rates: Instead of accepting zero interest rates or even negative interest rates, real estate yields attractive, positive returns that need not shy away from comparison with other investments.

Advantages of real estate as an investment

• Above-average return
• Below-average volatility
• Diversification effect due to low correlation
• Protection against inflation with relatively high and stable cash flow yields
• Low vacancy rate by international standards
• Swiss GDP per capita and GDP growth are very attractive compared to the euro zone

Agio for Swiss real estate funds

The premium represents the amount that an investor is willing to pay and that exceeds the net asset value of the property. How is the premium justified to the investor? One element is the way in which the net asset value is calculated. This is systematically below the market value - because the deferred liquidation taxes are included in the calculation. It is more than unlikely that such a case will come about, so a surcharge is justified. In addition, the amount of the premium is also subject to demand. When interest rates are low, investors are willing to pay more for real estate, which drives up agios.

How does a Swiss real estate fund work?

The way it works is similar to that of other mutual funds. The investor invests in fund units of the fund of his choice, which in turn is invested in real estate. The fund buys property and land that fits into the portfolio. The profits from this flow back into the fund assets and are distributed among the investors. The Fund Management company decides which properties to buy or sell, and operates according to a defined investment strategy.

Risks

Changes in property value and interest rate trends and their impact on the development of rental income, but also other market-specific and legal factors, influence the value of the fund's shares. An investment in this fund is therefore suitable for investors with a medium to long-term investment horizon and a corresponding willingness and ability to take risks. Every plant is subject to market fluctuations. Each fund has specific risks that can increase significantly under unusual market conditions.