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The new Fisch Convex Innovation Fund expands Fisch Asset Management’s product range with an allocation-driven equity strategy. The fund combines the return dynamics of leading technology and growth stocks with the stability of high-quality dividend-paying equities. The fund aims to generate positive returns, while systematically limiting risk during periods market weakness. This concept of convexity builds on the firm’s strong expertise in convertible bonds.
The investment strategy of the Fisch Convex Innovation Fund invests in a concentrated portfolio of around 30 individual stocks based on an innovative approach: Depending on market conditions, the focus is either on large growth stocks (such as Apple or Microsoft) or value-focused quality dividend stocks (such as Walmart or Procter & Gamble).
The fund takes into account established macroeconomic and market-technical factors such as excess liquidity and inflation dynamics. The result: a dynamic allocation between technology and dividend equities, which can fluctuate from 0 to 100 per cent depending on the market environment.
“In phases of positive market impulses, the portfolio may be fully invested in technology stocks. In times of economic weakness, the weight shifts towards defensive quality equities with stable earnings,” explains Reto Baumgartner, Head Multi Asset Solutions at Fisch Asset Management. “The reason lies in the fact that the technology sector typically comes under greater pressure than the overall market during downturns. This enables us to create a robust, convex return profile for investors – while retaining the long-term opportunities of the technology sector.”
Clear difference to traditional growth funds
The Fisch Convex Innovation Fund differs significantly from traditional growth funds. The investment process enables investors to benefit from the long-term, high potential for price appreciation in the growth and technology sectors. At the same time, the dynamic proportion of defensive dividend stocks provides a stabilising element that can noticeably cushion losses in volatile market phases. Reto Baumgartner adds: “The underlying strategy has proven its worth over the past two years as part of an existing investment solution. With the Fisch Convex Innovation Fund, we are now offering it for the first time as a standalone, investable product.”
The fund, jointly managed by Reto Baumgartner, Philippe Gehrig and Robin Bender, expands Fisch Asset Management’s multi-asset offering – which has been in place for more than 15 years – with a novel solution that responds early to heightened volatility and uncertainty in the market environment, thus combining stability and growth opportunities. It builds on Fisch Asset Management’s proven expertise in managing convex investment strategies.