The PARtact Pension Strategy Fund aims to benefit from the growth potential of capital markets for traditional asset classes. The risk scaling approach we apply helps to manage the level of risk assumed irrespective of current market turbulence and fragility. By applying very distinctive risk/return profiles for different market conditions, latent market risks can be avoided, while still identifying and tapping into market opportunities at an early stage.
Implementation of the PARtact Pension Strategy Fund
|Fund name||PARtact Pension Strategy Fund|
|Investment Strategy||Global Tactical Asset Allocation (GTAA) – in accordance with BVV2
No leverage, long-only
|Benchmark||70% Bonds CHF, 15% Equities Switzerland, 15% Equities World|
|Tactical Bandwidth||0-100% Bonds, 0-50% Equities, 0-20% Real Estate (w/o maximum 1/3 in foreign real estate), 0-15% Commodities|
|Investment Style||Risk Regime Investing (RRI) – risk-based approach which defines six optimum target portfolios for imaging of different market regimes. Based on a proprietary, quantitative model and indicators, that capture the market fragility.|
|Fees||0.5% p.a. Management Fee + appr. 0.13% p.a. Custody/Fund administration + Advisory Fee* of 0.1% - 0.4% p.a. Condition: Advisory Fee* or similar agreement with end client must be in place.|
|Suitable as||Core investment: strong tactical component
- Satellite investment: GTAA/Global Macro alternative or extension to existing alternative investments.
|Minimum requirement for initial subscription||CHF 250'000|
|Investment universe||8 Asset Classes:
Liquidity, Domestic Equities, Foreign Equities, Domestic Bonds, Foreign Bonds,
Inflation-linked Bonds, Real Estate, Commodities
|Instrument types||~15 ETFs (with appr. 4,000 securities) from a universe of 35-40 pre-selected ETFs.|
|Performance Contribution||ETF selection, adjustment of risk («Risk Scaling»), Asset Allocation (Asset Classes and Sub-Asset Classes).|
|Legal status/Domicile of fund||Investment fund/Switzerland|
|Number of transactions||~60% of portfolios p.a. (inkl. rebalancing),
appr. one to four changes of Target Portfolio yearly.
|Dividends||All income and capital gains from the investments are continuously reinvested or retained|
|Fund Management||UBS Fund Management (Switzerland) AG|
|Investment Manager||PARSUMO Capital AG, Förrlibuckstrasse 30, 8005 Zurich|
|Regulator||Swiss Financial Market Supervisory Authority (FINMA), Bern|
|Launch date||February 15th, 2013|
* AA Fee = fee according to advisory, management and access agreement
* AA = advisory, management and access agreement
The structure using ETFs, ETCs and ETNs has the following advantages over direct-investing funds: By investing in a small number of existing investment funds with large amounts of fund assets and broad diversification, the investment policy can be implemented in a more cost-efficient manner than would be possible with direct investments.
Possible applications – benefits for institutional investors
The PARtact Pension Strategy Fund is suitable as a core investment for institutional clients (pension funds and other portfolios structured under BVV2), who require their investments to comply with the restrictions set out in pension fund legislation. Thanks to an effective diversified investment policy and actively managed tactical asset allocation, the fund represents a comprehensive solution that makes active use of long-term trends for individual asset classes in order to generate optimum returns.
This makes the fund a flexible, long-term solution with above-average performance expectations. The collective investment instrument provides fund investors with access to an innovative institutional approach to asset management. The risk management model ensures the best risk/return profile throughout the various market conditions (risk regimes), provides conceptual protection against severe fluctuations and absorbs major market setbacks without dampening upside potential.
Issue/redemption conditions for fund units
In accordance with §17 (2) of the fund contract, (as a means of protecting existing/remaining investors against dilution) the following premiums and discounts are applied to the NAV (as a percentage of the subscription/redemption volume):
|Charge at Issue||Charge at Redemption|
|PARtact Pension Strategy Fund||+0,05%||-0,05%|
|Factsheet (in German)||Key Investor Information Document (in German)||Market Data|
The fund management company does not pay investors any reimbursements.
Prospectus with integrated fund contract (in German)