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Launch of the Finreon Tail Risk Control® 0-100 fund

26.06.2014

Risk-controlled investments with Finreon Tail Risk Control® are now also available for Swiss equities

With the newly launched fund ‚Finreon Tail Risk Control® 0-100’, investors are now able to invest in a risk-controlled way in the Swiss stock market while avoiding large losses of substance.

After the highly successful launch of the Finreon Tail Risk Control® (World) fund in December 2012, with AuM of more than USD 440 Mio., the Finreon Tail Risk Control® 0-100 fund was launched upon multiple client requests, which enables a risk-controlled participation in the Swiss stock market.

“With the launch of the Finreon Tail Risk Control® 0-100 fund, the investor is now able to implement with only two components a risk-controlled bandwidth control on Global equities as well as now also on Swiss equities. This corresponds to management of the most important risk, namely the equity-risk, by steering the equity quota. Moreover, the Finreon Tail Risk Control® 0-100 (CHF) fund now allows retail investors to profit from the successful and proven Finreon Tail Risk Control® strategy for the first time”, explains Dr. Ralf Seiz, founder and CEO of Finreon AG.

With two ‘Black Swans’ (extreme events; dotcom bubble (2001), world-wide financial crisis (2008)) in the last fourteen years, investors pursuing a buy-and-hold strategy were not able to exploit the systematic risk premium of equities. However, if those risks were anticipated early enough by reducing the equity quota in the asset allocation, the investor would have been compensated adequately for the equity risk.

The Finreon Tail Risk Indicator measures the risk of crashes (Tail Risk) on equity markets systematically and on a daily basis by the use of several factors and therefore steers the fund’s equity quota between 0% (in the case of high measured crash risk) and 100% (in the case of low measured crash risk). The long-term risk of the strategy is consistent with a benchmark of 50% Swiss equity and 50% LIBOR. The implementation of the equity quota is done efficiently and cost-optimized with a portfolio of SMI-shares.

“Finreon Tail Risk Control® 0-100 fund is ideal for investors who want to participate in the development of the Swiss stock market in a risk-controlled way while avoiding large substance losses”, says Sebastian Schmucki, member of the Investment Solutions team and responsible for the Finreon Tail Risk Control® product range.

As an investment advisor to the fund, Finreon is responsible for the calculation of the risk engine while St.Galler Kantonalbank is in charge of the investment management and Swiss & Global Asset Management is in charge of the fund administration.

The following classes are available:

  • Finreon Tail Risk Control® 0-100 (CHF) A-class: ISIN: CH0210244270; Valor: 21024427
    for Retail investors from CHF 0
  • Finreon Tail Risk Control® 0-100 (CHF) C-class: ISIN: CH0210244296; Valor: 21024429
    for Retail and Qualified investors from CHF 500’000
  • Finreon Tail Risk Control® 0-100 (CHF) D-class: ISIN: CH0210244312; Valor: 21024431
    for Qualified investors from CHF 5Mio. and a separate mandate contract with individual pricing

For any questions regarding the Finreon Tail Risk Control® 0-100 fund please contact: 
Simon T. Müller, Director, Finreon AG (simon.mueller@finreon.ch, +41 71 230 08 10)

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