Long-term equities are a convincing investment asset class. For years, Switzerland’s economy has been the most competitive in the world and Swiss equities reflect this through their performance. Since 1990, an investment in the broadly diversified Swiss Performance Index achieved a total return (capital gain + dividend) of more than 9% p.a.
Equity markets are characterized by long cyclical movements since they are dependent on the economic momentum, the monetary policy, as well as the attraction of other asset classes. However, the most important driver of price trend within the stock market is the long-term earnings development.
In this context, Bamert & Partner AG has examined an investment approach successfully implemented in the USA and has verified its suitability for the Swiss equity market.
Be right up there.
Source: Thomson Reuters
In addition to the popular S&P 500 Index (purple) found in the US, there is a sub-index S&P 500 Dividend Aristocrats (yellow) which includes shares that have increased their dividend payout on a regular basis over a period of 25 years. The long-term profit development of the dividend aristocrats proves to be more constant and sustainable than the overall market trend.
Adapted to Switzerland, Bamert & Partner AG has analyzed the dividend growth of all companies included in the Swiss Performance Index SPI. From within this investment universe, equities which fulfill the criteria of the dividend aristocrat’s concept, have been selected. Here, the dividend aristocrats (red line) outperformed the market by a large margin as well.
Source: Apollaris Fund Manager
Against this backdrop, Bamert & Partner AG issued an actively managed share certificate (Valor 28317341) in December 2015 in partnership with UBS AG. Further eligibility criteria include a market capitalization of at least CHF 500 Mio as well as a balanced industry structure.
Newly listed companies must provide evidence of having raised dividends for over 5 years in order to become eligible for investment. The maximum weighting for a single position is defined at 10%. At issuance, 17 Swiss companies have been selected.
Issuer: UBS AG, Zurich (A2 Moody’s)
Product Category: Actively managed share certificate
Portfolio Manager: Bamert & Partner AG, Bahnhofstrasse 29, 6300 Zug
Reference Currency: CHF
Issue Price: CHF 100.00
Launch Date: 30. November 2015
Maturity: 30. November 2022, with option to extend for 7 more years
Dividend: Reinvested (after deduction of withholding tax)
Fees: Management Fees 0.70% p.a.
Administration Fees 0.30% p.a.
Liquidity: Daily via UBS AG, Zurich 0.50% max. bid/ask spread
ISIN No.: CH0283173414
Valor No.: 28317341