Swiss franc bonds

    Focus on active, customer-oriented and sustainability-aligned investment solutions 

    In the past few years, falling interest rates have been the main performance driver in the Swiss bond market, which benefited passive investment solutions. But now bond markets seem to be shifting to a new regime. Careful active management of investment risks will become much more important because purely passive skimming of market risk premiums will no longer be sufficient in the future to benefit from the attractive risk-return characteristics of CHF bonds. Successful active investment solutions will also require a transparent and sound sustainability approach.

    Our active and sustainability-aligned investment solutions give you access to the entire CHF bond universe. We focus on government bonds as well as corporate bonds across all rating categories and sectors and can thus reflect any investment preferences.

     

    Our investment philosophy.

    We believe that the CHF fixed income market offers investment opportunities both due to its limited liquidity and size and the segmentation of investors. As Swiss fixed income specialists our role is to identify and exploit any inefficiencies we find.

    In the area of corporate bonds, we focus on the entire rating spectrum from AAA to B. In doing so, we rely on a disciplined and sound credit selection process that focuses on both issuer creditworthiness and credit valuation.

    We actively and carefully manage investment risk with the goal of generating sustainable returns1. The consideration of the entire capital structure, the focus on sustainability and the specific knowledge in the crossover area (BBB-BB) have contributed to convincing results.
     

    Sustainability pays off in many ways.

    States and companies that can provide answers to the challenges of the future generally have greater development potential. We therefore offer sustainable investment solutions through continuous development and integration of state-of-the art sustainability metrics and standards. Investing our managed assets with a sustainable approach is standard procedure.

    Our investment approach includes the application of four different layers:

    1. Negative screening: applying strict exclusion criteria;
    2. Positive screening: considering ESG practices and decarbonization trajectories;
    3. Preference for green, sustainable or social bonds;
    4. Active engagement process with a dedicated stewardship team. 
       

    Why LOIM for Swiss Fixed Income?

    • Consistent outperformance with outstanding and long-standing track records1: Since the launch of our fund range in 2008, we have significantly outperformed the relevant benchmarks almost every year. Our flagship product – the Swiss Franc Credit Bond Strategy– was launched in 2008 and is one of the first active investment solutions in the area of CHF corporate bonds.
    • A proprietary, disciplined, sound and sustainability-aligned investment process: we believe that finding investment opportunities requires different skills than those needed to replicate a benchmark. Therefore we separate the benchmark replication and performance generation and make efficient use of the diverse and broad knowledge of our investment specialists. We do not believe in the added value of consensus committees and decisions and hand over responsibility directly to the investment specialists, who are allowed to apply their knowledge on their own responsibility within a given risk budget. Our credit analysts not only write reports on issuers, but also apply their knowledge directly as portfolio managers, resulting in better and more efficient decisions.
    • A team of investment experts with many years of experience: our investment specialists are characterized by many years of experience, specific and complimentary knowledge, a high degree of personal responsibility, perseverance in the search for optimal investment solutions and curiosity about new investment strategies. We avoid the risk of inertia that comes from too much stability by constantly rethinking and expanding our investment solutions.
    • Clear commitment to sustainable investment solutions: we pursue a transparent sustainability approach, combining our established investment process with a comprehensive sustainability analysis. As a Swiss sustainability pioneer and due to our large in-house capacities in this field, we aim to remain ahead of the curve with regard to sustainability in the investment industry. 

     

    The reasons that speak for us:

    • Outstanding and long-standing track records for active investment solutions;
    • Access to experienced and dedicated investment specialists;
    • Recognized provider of customized investment solutions for institutional clients;
    • Broad network: We are an established player in the CHF capital market and have access to many issuers and new issues;
    • Proactive customer service and excellent as well as customized reportings;
    • Multiple award winning manager (Lipper, Morningstar, Citywire). 
       

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    These ratings may change over time.


    1Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance/risk.

    Investment team.

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    Markus Thöny
    Head of Swiss Fixed Income
     

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    Yannik Zufferey
    CIO Fixed Income
     

    LOcom_AuthorsAM-Perez.png David Perez
    Senior Portfolio Manager and Credit Analyst
    LOcom_AuthorsAM-Schuster.png Flavio Schuster
    Portfolio Manager and Credit Analyst
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    Philipp Burckhardt
    Portfolio Manager and Credit Analyst
     

    LOcom-AuthorsAM-Bizzozero.png Giovanni Bizzozero
    Junior Portfolio Manager
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    Marco Di Fante
    Client Portfolio Manager

     

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