Simon Lutz in an interview with the NZZ: "Switzerland offers many qualitycompanies with a presence."
In an interview with the NZZ am Sonntag, our CIO Simon Lutz, CFA, explains why targeted diversification with foreign equities is worthwhile despite the strong franc. He explains to Werner Grundlehner how active currency management helps to reduce risks and benefit from global opportunities at the same time.
Targeted admixture proves its worth
The latest article from NZZ am Sonntag sheds light on why this currency advantage can pay off for investors and where targeted diversification still makes sense.
Our CIO, emphasizes in the interview:
“Switzerland offers many quality companies with a global presence.
Nevertheless, the addition of foreign equities creates added value. This is particularly the case in sectors that are underrepresented on the Swiss stock exchange.”
At the same time, it shows that currency risks can be actively managed:
“We hedge around half of our US and European exposures in Swiss franc portfolios. This allows us to reduce the overall risk without sacrificing diversification benefits.”
Many thanks to Werner Grundlehner for the well-founded classification and the interview.
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