SaraSelect invests in shares of small and medium-sized companies domiciled in Switzerland. This segment is considered to be the backbone of the Swiss economy and is well-known for its innovation.
Over many decades, Swiss small- and mid-caps have developed robust business models in order to cope with an ever-strengthening Swiss franc. These companies are characterized by a long-standing and proven culture of engineering and innovation. Due to the limitations of the Swiss market they were forced to increasingly focus on international growth markets. As a result, the “Swiss” label became a global standard for quality.
- Invests in innovative companies with high market shares, global footprint and structural growth
- Distinct emphasis of industrials and technology
- Avoids non-transparent business models (banks, biotech, insurances)
- Low turnover with stable portfolio over time
- Focus on companies with core shareholders and trustworthy management
- Invests independently from the index
Swiss small and mid-caps are often backed by anchor shareholders who act very responsibly, which can help these companies to build better corporate cultures, superior strategies and deliver significantly better operating results.
Distinct emphasis is put on industrials and smaller-caps – a segment that is often overlooked by analysts and is well-placed to profit from structural mega trends like urbanisation, environment & energy, communication, security & regulation, mobility or ageing & lifestyle.
Stock selection is based on a bottom-up approach, where they are selected independently from the benchmark, with a weighting that reflects the fund managers’ conviction. The focus on quality means also that certain sectors that are exposed to undesirable risks, such as erratic business models, lack of transparency or increased regulatory risks, are avoided (e.g. biotech, banks, insurance companies, utilities).
The fund accompanies “its companies” for the long run, trusts the management and thinks as the co-owner. This leads to a long-term view of holdings with low portfolio turnover. In order to capture the returns from full investment cycle, the investors should consider a holding period of at least 5-10 years in the fund. Meanwhile, the fund aims to outperform the SPI Small & Mid Cap® index.
As a result, this distinct investment philosophy has led to a very successful track record of more than 25 years, placing SaraSelect in the top peer group rankings.
For information about investment products please visit our Fund Finder.