Launch of two new Swiss equity investments

In recent years, an increasing number of clients have approached us with the desire for a Format equity investment that not only achieves medium- to long-term outperformance against the benchmark but also delivers returns in all market phases that deviate less from the market than existing investments. Such an investment is very well suited for long-term holding.

To meet this client need, Format is launching two new equity investments. Both new investments apply the same investment philosophy as our existing Swiss Growth Equities, Swiss Mid & Small Cap Equities, and Swiss Dividend Equities. Both are available as funds and, for investments of CHF 1 million or more, as asset management mandates. Our asset management fee for both investments is 1% per annum.

In September, we renamed our existing Format Swiss Equities investment to Format Swiss Growth Equities. Nothing else about the investment has changed. This name change reflects the focus on growth stocks that has been in place since launch, while also freeing up the name "Swiss Equities" for one of the new offerings.
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Format Swiss Equities

Format Swiss Equities invests approximately half in growth stocks and half in dividend stocks,primarily in shares of large and mid-cap companies. The investment universe and benchmark is the Swiss Performance Index (SPI). 

The goal of this investment is medium- to long-term outperformance against the SPI as well as lower deviation from the SPI than the existing Swiss Growth Equities and Swiss Dividend Equities investments. Outperformance against the SPI is sought through stock selection, while lower deviation from the SPI is achieved by combining growth and dividend stocks. 
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Format Swiss Dynamic Equities

The basis for Format Swiss Dynamic Equities is a single-stock portfolio identical to that of Format Swiss Equities, meaning it is invested approximately half in growth stocks and half in dividend stocks, primarily in shares of large and mid-cap companies. The investment universe and benchmark for this investment are also the Swiss Performance Index (SPI). 

In extraordinary situations The portfolio composition of Format Aktien Schweiz Dynamisch can be adjusted by Format to include up to 100% dividend stocks or 100% growth stocks; additionally, a higher proportion of small-cap stocks can be included in the portfolio. Extraordinary situations include, for example, very pronounced growth phases like those in 2021 or crisis periods like those in 2022.

The goal of this investment is medium- to long-term outperformance against the SPI and to Format Aktien Schweiz. Outperformance relative to the SPI is targeted through stock selection, while outperformance relative to Format Aktien Schweiz (new) is targeted through allocations during extraordinary phases. 

Your contacts at Format are happy to assist you with any questions or to provide advice regarding these two new equity investments.

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