Tobam, the Paris based manager, has launched a Switzerland equity strategy based on its Anti-Benchmark approach, following its CHF75m seeding by a Swiss pension fund.
This follows an October announcement of a similar World ex-Switzerland strategy using the same Anti-Benchmark approach, and also seeded by a Swiss institutional investor to the tune of CHF90m.
The latest launch is described as offering an alternative to passive investments in particular, which in the Swiss equity market context are heavily market cap weighted towards three stocks that make up some 51% of the benchmark: Nestle, 22.6%, Novartis, 14.5% and Roche, 14.2%.
Running an Anti-Benchmark strategy facilitates diversification and avoids concentration risk, Tobam states. It adds that its patented Maximum Diversification approach "is designed to offer a neutral allocation to all the effective independent risk factors available to each market."
Christophe Roehri, Deputy CEO of TOBAM, said: "We see great potential for our strategy in the Swiss equity market. The equity landscape is dominated by a handful of major holdings, which makes for a highly concentrated market. That makes our Anti-Benchmark approach particularly appealing for investors looking to explore the untapped opportunity and diversity of the Swiss economy."