07.07.2021

Tracker Certificate on the Cité Gestion CHF Dynamic Strategy Index

In 2020, Cité Gestion has launched two Dynamic Strategy AMCs in USD and EUR. The philosophy of these strategies is based on three pillars: 1) Investing for the long term in a world increasingly dominated by short-termism, 2) the power of compounding, and 3) diversification.

The USD version was launched on 1.9.2020 and has since returned 18.1%. The outperformance vs. the benchmark is 3.1%.

The strategy has a track-record since 2014 and has returned an annualized 7.5% with a volatility of 11.6%.

The EUR version was launched on 1.12.2020 and has since returned 11.4%. The outperformance vs. the benchmark is 0.8%.

The strategy has a track-record since 2014 and has returned an annualized 7.1% with a volatility of 10.6%.

Due to the success of the USD and EUR strategies, we are now launching the Tracker Certificate on the Cité Gestion CHF Dynamic Strategy Index. This AMC will be issued by Leonteq and collateralized at the SIX. The aim is to provide a turnkey solution for CHF-based investors who want to grow their wealth over the medium-term without worrying about asset allocation, timing or counterparty risk.

To achieve this the strategy offers a high level of diversification across asset classes and world regions. It is based on the Cité Gestion Growth asset allocation and invests in passive, low cost instruments. Its components are selected according to the following criteria: cost, size and liquidity. The neutral weights of the components are: 5% cash, 25% fixed income, 60% equities and 10% alternatives. While tactical asset allocation can fluctuate around these weights according to market conditions, changes in allocation will not be frequent. The strategy is buy-and-hold with the aim to compound over the medium term. Currency exposure is adjusted with an FX overlay. The currency exposure to the CHF is around 70%.

Termsheet