Swiss asset manager launches premium stable income fund

Ridhima Sharma
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Swiss asset manager launches premium stable income fund

Swiss asset manager Finreon has launched the Finreon Premium Stable Income fund with initial investments of more than CHF 120m on 19 August 2019.

The Finreon Stable Income fund is the first product in Finreon's new product range for high net worth individuals, family offices and foundations. The new White Fleet III - Finreon Premium Stable Income fund enables private investors to invest like leading institutional investors.

The Finreon solution is based on Finreon's profound and longstanding experience with institutional investors and relies on established investment approaches for stock selection, portfolio optimisation and risk management.

The new strategy enables investors to participate in the long-term growth of the economy through a robust and high-dividend portfolio while limiting capital fluctuations to a moderate level.

Finreon Premium Stable Income offers recurring returns with moderate fluctuations in the invested capital. Based on strategies proven in practice and research, around 400 global high-dividend equities from developed markets with attractive performance characteristics are selected. This enables a payout of around 5% p.a., which is significantly above the average dividend yield in the market. 

A defensive portfolio construction combined with systematic risk management (risk on/off) limit fluctuations in the invested capital to a moderate level. In crash phases, the equity risk (beta) can be completely hedged.

The fund takes place in an efficient Ucits structure. Investors can choose from various share classes, including distributing, accumulating and currency-hedged classes.