News

Over the last 5️ years, the Finreon Fixed Income Risk Control^® USD Aggregate Fund has outperformed its Swiss competitors in the 'Bond USD' category & has been crowned the best fund. The unique approach to managing interest rate and credit risks has once again prevailed and underlined the importance of risk control. Especially in the difficult phase of rising interest rates in 2022, duration management using the Finreon interest rate risk indicator was able to deliver great added value.

Find out more about our Finreon Fixed Income Risk Control^® solutions

Just one year after being awarded the FNG seal for the first time, our fund has been honored with a second star. With two stars, the Finreon SGKB Carbon Focus Fund is therefore one of the most sustainable investment solutions. The FNG seal is the quality standard for sustainable investment solutions in German-speaking countries. Compared to the previous year, the fund stood out in particular with its "innovative concept as part of the systematic engagement strategy". Our efforts in the area of a strictly sustainable selection strategy and the quality of our reporting were also rated positively compared to the previous year.

Find out more about the Finreon Carbon Focus investment concept here

Press release FNG label

The time has come. After more than two years of development, we can announce the successful launch of the "Finreon Green Income Fund" to harvest volatility premiums. The Finreon Green Income Fund innovatively combines the harvesting of volatility premiums with a sustainable green bond underlying portfolio. The risk-controlled volatility strategy features robust return/risk characteristics and is designed to provide steady returns.

Read the Newsletter from Institutional Money

Read the Newsletter from Universal Investement

The US Federal Reserve has just raised its interest rates to the target range of 5.00-5.25%. We may have reached the peak of the current rate hike cycle. It would be the 12th cycle since 1962 to come to an end. What can bond investors learn from this historical experience? Is now a good time to (re)enter the market?

Read the Paper here

The time has come! This Thursday, April 27th, we will present our new sustainable volatility strategy to a larger audience for the first time: FINREON GREEN INCOME®.
The volatility strategy has been developed over the last two years according to the latest methodologies and allows for the first time to capture the volatility premium in a sustainable Art. 8+ UCITS fund. Investors who are involved from the beginning benefit from exceptionally attractive fees and there is even the possibility to secure a low pricing "forever". The next weeks we will be on a big presentation tour in Germany, Austria and Switzerland.

It was with great pleasure and pride that we received the FNG seal for the Finreon SGKB Carbon Focus Fund on November 24, 2022. Together with St.Galler Kantonalbank, the fund was launched in January 2022. The FNG seal is the quality standard for sustainable investments. One of the core tasks of the FNG is to further develop and improve financial investments in order to ensure the quality of sustainable investment products. The fund is characterized in particular by its rigorous selection and construction process, its special sustainability strategy and its high level of transparency. In addition, the role of sustainability in our company, as well as its ESG know-how and institutional credibility, stood out positively in the evaluation process.

Read the media release here. (only in German)

DAS INVESTMENT is a financial magazine and reports about many interesting topics in the field of finance. From now on we have the opportunity to present ourselves on the microsite of Universal with our company profile and especially our new solution in cooperation with St.Galler Kantonalbank Germany, Finreon SGKB Carbon Focus®.

Discover our profil here.

We are very excited about our new collaboration with the Master in Quantitative Finance at the University of Zurich and ETH Zurich. As bridge builders, we call for exchange between academia and practice.

Learn more about the collaborations of our new partners here.

"We need to move from a Brown to a Green Economy," says Dr. Ralf Seiz in an interview with Sven Thielmann. The new podcast episode of St. Galler Kantonalbank Deutschland AG explains the need for a lower CO₂ structure and how decarbonizing portfolios actually works.

The innovative Finreon SGKB Carbon Focus combines a global equity portfolio with a patent-pending strategy that establishes a short position against companies with a high carbon footprint. It thus enables hedging against CO₂ risks and aims to neutralize the CO₂ footprint of portfolios.

Feel free to listen in here.

The high inflation figures in the USA have prompted the Fed to rethink its policy. The unprecedented quantitative easing program is therefore being ended in rapid steps. Key interest rate hikes are on the cards. This monetary policy normalization also means a return to economic reality. This is a challenging environment for bond investors. Dynamic managing interest rate and credit risks can help. We show you how and why this will help you get through the new bond year 2022 successfully.

Continue to the macroeconomic Update (only in German)

Finreon was present at this year's Richmond PIMS Forum in Bad Ragaz. During two days financial experts and investors meet for seminars, workshops and one-to-one meetings. An all-around exciting conference with the goal to provide senior industry professionals with access to new ideas, solutions and innovations.

Continue to the Richmond PIMS Forum

In the current Finreon Flash, we show that risk management using the Finreon Tail Risk Control® strategy has resulted in an 11% increase in assets for a typical Swiss pension fund over the last 10 years. You can read more about this on the following two pages.

Continue to the Finreon Flash

Finreon is pleased to announce that the Finreon Fixed Income Risk Control® USD Aggregate Fund, launched in June 2018, now has a 3-year track record and ranks first in its peer group "Bonds USD Diversified" in terms of return and return/risk. With an absolute performance of +18.0% (CHF-hedged), the fund clearly outperformed the benchmark Barclays US Aggregate (+9.6%).

Read the fund details here

On August 25, the tenth academic lunch seminar took place at Haus zum Rüden. In the two keynote speeches we showed how the asset class equities can be assessed in the current economic environment and to what extent a targeted rebalancing can help to bring opportunities and risks back into balance.

Since summer 2021, Finreon AG has been one of the approximately 180 members of Swiss Sustainable Finance. As a member of the SSF, we strive to strengthen the further development of sustainable financial products and promote solutions to combat climate change within the financial industry. Our goal is to drive innovative solutions by bridging the gap between research and practice.

A two-tiered approach to equity risk management. The attractiveness of equities as an asset class continues to increase due to the current low interest rate environment. However, equities carry a risk of large losses. In the June 2020 edition of Absolut|report, we divide this risk into two types and show how an investment portfolio can be protected against losses by two complementary risk management approaches.

Read the article in Absolut report here (only available in German)

It is with great pleasure that we inform you that Finreon has won two Lipper Fund Awards 2020 in cooperation with St. Galler Kantonalbank (SGKB). The awards were presented to representatives of the two partners on Wednesday, February 26, 2020, during the official Refinitiv Lipper Fund Awards 2020 Switzerland event at the Park Hyatt in Zurich.

Finreon presented its new investment solution Finreon Carbon Focus® in September 2020. Simple, flexible and cost-effective decarbonization of portfolios, this is what the new range of solutions promises.

Carbon footprint neutralization with the Carbon Focus® Swap

The innovative portfolio construction of Finreon Carbon Focus® enables an efficient and complete neutralization of the carbon footprint of investment portfolios. Due to the patent-pending optimization algorithm, this neutralization leads to very little additional tracking error and thus low additional risks.

Read the article of the NZZ, Neue Zürcher Zeitung, on the topic "In investment portfolios, the climate target of 2050 can already be achieved tomorrow". (only available in German)

On Wednesday, September 9, the annual joint customer event together with Acrevis took place. Due to the current Corona situation, the number of seats was limited. Nevertheless, we had the pleasure to welcome several customers to the event in St. Gallen. Dr. Ralf Seiz (CEO, Finreon) and Dr. Alexander Gruber (Head of Economic Research and Advisory, Finreon) presented as guest speakers on the topic Beyond Zero: Ways out of the monetary policy impasse.

CLOSED: The world stands still. Since the outbreak of the coronavirus crisis, we are experiencing historic times! Events on the markets are abundant: Entire countries are in lockdown; some industries are at a complete standstill; central banks are printing vast amounts of money; governments are putting together unprecedented rescue packages and even talking about helicopter money. In our macroeconomic update, we shed light on the fascinating background, provide interesting facts and describe the possible effects on the markets and on the economy.

Finreon successfully launched the Finreon Premium Stable Income Fund on August 19, 2019 with initial investments of more than CHF 120 million, the first product from Finreon's new product range for high net worth individuals, family offices and foundations. The new White Fleet III - Finreon Premium Stable Income Fund enables private investors to invest like leading institutional investors

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Read the news article at the online magazine Investment Europe. (only available in German)

The third academic Brown Bag Seminar took place on February 26, 2019. We welcomed more than 80 participants from various renowned companies in the financial industry to this successful event at Au Prémier in Zurich. Once again, current academic papers from the field of financial market research were presented in a short and easy-to-understand format and made accessible to the participants. During the subsequent networking lunch, further lively discussions were held.

Finreon, together with STOXX, launches the official EURO STOXX® Multi Premia® Index, the new standard for factor-based investing on Eurozone equities. The new CSIF (Lux) Equity EURO STOXX® Multi Premia® Fund is suitable for investors who want to invest in a broadly diversified way in seven scientifically based factor premia in the eurozone equity market.

Read the presentation online here. (only available in German)

Innovate2Invest 2018, an annual conference hosted by STOXX, took place in London on April 25, 2018. Nobel Laureate Myron Scholes presented on the topic of "Benefits of Dynamic Risk Management" and experts elaborated on developments in multi-factor investing during a panel discussion. Lukas Plachel from Finreon's Investment Solutions team participated in the event as a panel expert on multi-factor investing.

Watch the panel discussion here.

During periods of turbulent market movements, questions always arise. The risks in the field of factor-based smart beta solutions is one of them: can investments, which are often accused of lacking human steering, be trusted?

Read the article from "Banco - le magazine suisse de l'asset management". (only available in French)

The seven factors of the Single Premia indices include size, value (low priced stocks), momentum (systematic trends) or low risk (safe stocks). However, exploiting such added values is not a simple matter. It requires a fundamental understanding of the isolated factors, combined with strategic decisions about the timing of the choices made. Only then will semi-active indices succeed in outperforming traditional passive indices.

Read here the article by Dieter Haas about the ZKB Tracker Certificates, which are based on our SPI Single Premia Indices. (only available in German)

The SPI Multi Premia® Index combines the seven SPI Single Premia Indices and enables a broad and diversified absorption of factor premiums. Since the beginning of September 2016, investors have been able to participate 1:1 in the price performance of the SPI Multi Premia Index via the CSMPBFA index fund.

Read the article by Dieter Haas on the Credit Suisse fund, which is based on our SPI Multi Premia index family. (only available in German)

The first fund on the SPI Multi Premia® Index has been trading on the Swiss stock exchange since fall 2016. Now, the product offering on the SPI Multi Premia® Index family has been expanded by seven open-end tracker certificates from Zürcher Kantonalbank. The tracker certificates, which have just been launched on the SIX Swiss Exchange, track the performance of the SPI Single Premia Indices® and thus enable investors to make targeted investments in the seven individual factors: Value, Size, Momentum, Residual Momentum, Reversal, Low Risk and Quality. The official SPI Single Premia Indices® of the Swiss Stock Exchange (SIX) each comprise 30 stocks with characteristics in line with the corresponding factor premiums. Within an SPI Single Premium, the securities are weighted according to their risk, so that all securities contribute equally to the risk (risk parity).

The Swiss Stock Exchange recently launched the SPI Multi Premia index family for factor-based investing. The eight new indices enable broader diversification and create additional return opportunities.

Read the article by Dieter Haas here, which was published in the December 2016 issue of Payoff Magazine. (only available in German)

As of September 13, 2016, Finreon launches the new index series SPI Multi Premia® together with SIX. The solution is based on systematic return drivers and features robust performance characteristics through a targeted diversification of these factors.

The launch of the SPI Multi Premia® index family at SIX Swiss Exchange will take place in the presence of Dr. Schmitz-Esser, Head of Index Solutions Credit Suisse, Werner Bürki, Member of the Management Committee of SIX, and Dr. Ralf Seiz, CEO of Finreon.

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Finreon now offers the proven IsoPro® concept on sustainable stocks in the emerging markets. Sustainable investing is in vogue. There are many reasons for this, ranging from the avoidance of reputational risks to the active promotion of sustainable business practices. In the emerging markets in particular, there are major differences in the sustainability of companies - a sustainable investment strategy makes particular sense in this context.

As a spin-off of the University of St. Gallen and as a long-standing think tank, it is our great pleasure to provide you with an update regarding the performance of our IsoPro strategies for equities at the beginning of the year. Since their launch, our IsoPro solutions have outperformed in all markets. IsoPro are rules-based, passively-oriented and broadly diversified strategies that are ideally suited for institutional equity portfolios. Since launch, all IsoPro strategies have outperformed their benchmarks and generated annual outperformance after costs.

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