Model portfolios – Swiss focus: A slight reduction in equity allocation

Summer marked a return to uncertainty. There were several minor corrections in price on the stock exchanges, though overall the losses were contained. Meanwhile, interest has fallen significantly once again. In an environment with weaker growth prospects and a variety of political risks, another moderate risk reduction is appropriate. For this reason, we are slightly raising our underweight equity allocation and increasing our holding of international bonds. By adopting an overweight position in gold and Japanese yen, we are also continuing to rely on “save havens”. Lastly, we are increasing the allocation of real estate funds, which, thanks to the extraordinarily low interest rate environment, seem to be moderately valued.

We are currently preparing to incorporate our tactical investment positioning into the relevant product solutions. These new investment solutions will be launched on the Swiss market during the course of 2020. We are implementing our house view in model portfolios, as shown below. Until the official launch of these new investment solutions, PostFinance is not providing any investment advice based on this tactical investment positioning and is not accepting any asset management mandates either.

Interest income

Liquidity 11%, equities 10%, bonds 63%, alternative investments 16%
Source: PostFinance

Balanced

Liquidity 7%, equities 44%, bonds 33%, alternative investments 16%
Source: PostFinance

Capital gains

Liquidity 7%, equities 77%, bonds 0%, alternative investments 16%
Source: PostFinance
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