Risk management of investment strategies

The aim of an investment in pension funds is always to preserve or increase the assets invested. On the other hand, an investment in the financial markets is always associated with various risks. In this way, the value of pension assets can fall or rise. As a rule of thumb, the higher the expected return (the more stocks), the higher the associated risks (the greater the fluctuations). In the implementation process, we strive to minimize the risks for each client, for example, implementation by means of index funds and ETFs is much more broadly based than implementation by means of individual securities.

The most important risks include the following: Price risk, exchange rate risk, counterparty risk, securities lending, interest rate risk and various general economic risks such as inflation, economic activity, geopolitical risks etc.

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Deposits, transfers and strategy changes will be invested or implemented weekly on Tuesdays. If it is a public holiday, the rebalancing will take place on the next possible trading day. Between Christmas and New Year, there will be no rebalancing due to limited tradability.

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Your portfolio is checked 1x monthly in the first rebalancing of the month. If necessary, your assets will be returned to the target ratio (more details: Academy).

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Rebalancing ensures that asset allocation does not deviate too much from the defined strategy. The portfolio thus always meets the client's target strategy.

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Each customer determines his or her personal strategy in the onboarding process. This defines how the assets are distributed across various asset classes and regions (e.g. 10% equities in Switzerland). As a result of movements in the financial markets, the effective distribution of assets may differ from the defined strategy (in case of good Swiss equity markets, for example, the Swiss equities share may increase to 12%). The automatic rebalancing checks these deviations once a month in the first rebalancing of the month and, if necessary, returns the client's assets to the defined strategy. Deposits, transfers and strategy changes will be invested or implemented weekly.

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