The PARworld Dynamic Equity Strategy Fund aims to benefit from the growth potential of equity markets. 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, increasing equity market risks can be avoided ahead of time, while still identifying and tapping into market opportunities at an early stage.
Implementation of the PARworld Equity Strategy Fund
|Fund name||PARworld Dynamic Equity Strategy Fund|
|Investment Strategy||Equities World plus Global Tactical Asset Allocation (GTAA)
No leverage, long-only.
|Benchmark||70% MSCI World, 30% Money Market/Liquidity|
|Tactial Bandwiths||30-100 % Equities, remainder in liquidity.|
|Reference Currency||CHF (currency exposure according to MSCI World)|
|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 150'000|
|Investment universe||Liquidity, Domestic Equities and Foreign Equities|
|Instrument types||~10 ETFs (with appr. 5,000 securities) from a universe of 35-40 pre-selected ETFs.|
|Performance Contribution||Adjustment of risk («Risk Scaling»), Asset Allocation (asset classes, sub-asset classes and countries), ETF selection.|
|Legal status/Domicile of fund||Investment fund/Switzerland|
|Number of transactions||~60% of portfolio 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||December 27th, 2013|
* AA Fee = fee according to advisory, management and access agreement
* AA = advisory, management and access agreement
The structure with ETFs 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 high-net-worth private clients
The PARworld Dynamic Equity Strategy Fund is suitable as a core investment for high-net-worth private clients. Thanks to an effective diversified investment policy across various equity markets (based on the MSCI World) and actively managed tactical asset allocation, the fund represents a comprehensive solution or a core solution for implementing the foreign equities asset class.
The fund’s benchmark, with 70% MSCI World and 30% CHF liquidity, has been structured in such a way that the asset class can be allocated to the funds up to the specified maximum amount (upper range for overweighting the foreign equities asset class).
This makes the fund a flexible 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 (market regimes), provides conceptual protection against severe fluctuations and absorbs major market setbacks without dampening upside potential.
Issue and 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|
|PARworld Dynamic Equity Strategy Fund||+0,10%||-0,10%|
|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)