Performance Commentary

4th quarter 2022

Equity World

As at the beginning of Q3, hopes that the central banks would deviate from their path of interest rate hikes were the driving force behind the significant recovery on the global equity markets in Q4. However, the central banks put an end to this in December with further (albeit no longer quite so large) interest rate hikes and once again reaffirmed their determination to continue to fight inflation vehemently. Investors reacted in a huff and prices slid again.

The relative performance of our risk-based strategies behaved in line with expectations during this contrasting quarter. In October and November, with rising prices and declining market risks, our funds fell behind their benchmarks. However, in the negative December environment, all strategies recovered the shortfall and even exited the quarter ahead of benchmark. Just as in Q3, currencies had a large impact on the relative performance of non-hedged fund classes in Q4 - this time just the opposite. The underweight in USD delivered a large positive performance contribution in Q4.

Looking at the full year 2022, our Developed Market funds met expectations. With risk-optimized stock selection, they were able to reduce both volatility and drawdown in a negative year and close ahead of their benchmarks.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Global equities
Data as per 28.02.2023 in reference currency of the funds
MSCI World Index (85% CHF hedged)
Class I-A Currency CHF Inception date 17.12.2014 Price 13'468.75
Return February
-1.39 %
-1.60 %
Return 2023
2.02 %
4.54 %
Return (cum.) since inception
28.07 %
72.07 %
Risk Volatility
9.30 %
14.69 %
Sharpe Ratio
0.29
0.44
Data as per 28.02.2023 in reference currency of the funds
Class C Currency CHF Inception date 31.01.2014 Price 144.63
Return February
-1.36 %
-0.44 %
Return 2023
2.79 %
5.86 %
Return (cum.) since inception
44.23 %
106.62 %
Risk Volatility
11.12 %
14.82 %
Sharpe Ratio
0.37
0.56
Global equities ex CH
Data as per 28.02.2023 in reference currency of the funds
MSCI World ex Switzerland Index
Class I-C Currency CHF Inception date 15.04.2014 Price 14'842.43
Return February
-1.24 %
-0.41 %
Return 2023
3.05 %
5.92 %
Return (cum.) since inception
53.05 %
107.72 %
Risk Volatility
11.39 %
15.17 %
Sharpe Ratio
0.40
0.55
Data as per 28.02.2023 in reference currency of the funds
MSCI World ex Switzerland Index (85% CHF hedged)
Class I-A Currency CHF Inception date 27.06.2014 Price 1'322.01
Return February
-1.27 %
-1.60 %
Return 2023
2.20 %
4.56 %
Return (cum.) since inception
41.55 %
75.48 %
Risk Volatility
9.37 %
14.44 %
Sharpe Ratio
0.44
0.46
Global equities ex CH (exempt from US/JP withholding tax)
Data as per 28.02.2023 in reference currency of the funds
MSCI World ex Switzerland Index
Class I-C Currency CHF Inception date 09.11.2017 Price 15'701.26
Return February
-1.24 %
-0.41 %
Return 2023
3.00 %
5.92 %
Return (cum.) since inception
1.28 %
36.56 %
Risk Volatility
12.68 %
16.94 %
Sharpe Ratio
0.02
0.36
Data as per 28.02.2023 in reference currency of the funds
MSCI World ex Switzerland Index (85% CHF hedged)
Class I-A Currency CHF Inception date 09.11.2017 Price 1'406.50
Return February
-1.25 %
-1.60 %
Return 2023
2.16 %
4.56 %
Return (cum.) since inception
5.97 %
34.66 %
Risk Volatility
10.60 %
16.90 %
Sharpe Ratio
0.08
0.33
Pension solutions for pillar 3a and vested benefits assets
Data as per 28.02.2023 in reference currency of the funds
MSCI World Index (85% CHF hedged)
Class IH Currency CHF Inception date 24.10.2019 Price 94.10
Return February
-1.39 %
-1.60 %
Return 2023
2.02 %
4.54 %
Return (cum.) since inception
-5.90 %
23.88 %
Risk Volatility
11.97 %
18.66 %
Sharpe Ratio
-0.15
0.35

Equity Emerging Markets ex China

The emerging markets also made clear gains up to the end of November and trended somewhat weaker in December. The Turkish stock market was one of the biggest winners in Q4. In contrast to the rest of the world, Turkey is easing its monetary policy to stimulate the economy despite high inflation. Numerous Eastern European markets also recovered significantly after being among the big losers with the Russian invasion of Ukraine.

As expected, our fund did not quite keep pace with the benchmark during the upward phase. In the more volatile month of December, it was able to narrow the gap somewhat and end the quarter with a slight underperformance. For 2022, however, a clear outperformance resulted in a clearly negative market environment.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Emerging markets equities
Data as per 28.02.2023 in reference currency of the funds
MSCI Emerging Markets Index
Class I Currency CHF Inception date 22.08.2012 Price 969.93
Return February
-0.50 %
-4.60 %
Return 2023
3.23 %
2.21 %
Return (cum.) since inception
-3.01 %
23.27 %
Risk Volatility
11.79 %
14.79 %
Sharpe Ratio
-0.01
0.16

Equity Switzerland

In line with the global trend, the Swiss stock market also rose and held up relatively well in December. In this overall positive market environment, our fund could not quite keep up with the SPI. One of the main reasons in Q4 was the stock selection within the industrial sector. We also underperformed for the entire negative 2022. In particular, our overweight in mid caps and the industrial sector as well as the structural underweight in the defensive index heavyweights (first and foremost Novartis) weighed on performance.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Swiss Equities
Data as per 28.02.2023 in reference currency of the funds
Swiss Performance Index (TR)
Class IR Currency CHF Inception date 20.12.2010 Price 2'368.98
Return February
0.00 %
-1.29 %
Return 2023
4.54 %
4.14 %
Return (cum.) since inception
159.98 %
144.38 %
Risk Volatility
11.21 %
11.89 %
Sharpe Ratio
0.74
0.65

Equity Europe ex Switzerland

Europe's stock markets recovered from price losses in October and November. In contrast to the USA, the corporate landscape on this side of the Atlantic is less technology-heavy. As a result, Europe's equities held up relatively well in the otherwise rather negative month of December. As expected, our risk-optimized fund was unable to keep pace with the capital-weighted index during the strong upward phase and was also unable to make up the shortfall in December, which was only slightly negative. Despite negative markets, we unfortunately underperformed for the whole of 2022 as well. In contrast to Developed Market equities, we were not able to benefit from an underweight in highly volatile technology companies in this universe. In addition, the significant underweight in the energy sector also weighed on performance.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
European Equities ex CH
Data as per 28.02.2023 in reference currency of the funds
MSCI Europe ex CH Index
Class I-C Currency CHF Inception date 15.09.2015 Price 962.00
Return February
1.29 %
1.89 %
Return 2023
7.00 %
10.44 %
Return (cum.) since inception
1.97 %
39.90 %
Risk Volatility
13.65 %
17.02 %
Sharpe Ratio
0.04
0.30
Data as per 28.02.2023 in reference currency of the funds
MSCI Europe ex CH (CHF hedged) Index
Class I-A Currency CHF Inception date 15.09.2015 Price 109.47
Return February
1.05 %
1.79 %
Return 2023
5.87 %
9.28 %
Return (cum.) since inception
15.92 %
56.30 %
Risk Volatility
11.16 %
14.76 %
Sharpe Ratio
0.19
0.44

Equity China

Once again, the Chinese equity market behaved somewhat contrary to the rest of the world. It continued to decline in October and then began a major recovery at the beginning of November. The reason for the price advances was the Chinese government's radical departure from its zero-covid policy. Our fund was able to limit losses very sharply in October, but lost ground again during the strong upward phase and ended the quarter virtually on a par with the benchmark. Over the full year, the risk-based strategy held up very well in a strongly negative and volatile environment and significantly reduced the drawdown compared to the index.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Chinese Equities
Data as per 28.02.2023 in reference currency of the funds
MSCI China Total Return Index
Class IC (CHF) Currency CHF Inception date 23.09.2021 Price 908.34
Return February
-2.21 %
-8.18 %
Return 2023
4.35 %
1.45 %
Return (cum.) since inception
-9.17 %
-25.11 %
Risk Volatility
17.93 %
32.03 %
Sharpe Ratio
-
-
Data as per 28.02.2023 in reference currency of the funds
MSCI China Total Return Index
Class IH (HKD) Currency HKD Inception date 23.09.2021 Price 1'802.78
Return February
-4.01 %
-9.87 %
Return 2023
3.60 %
0.72 %
Return (cum.) since inception
-9.86 %
-25.68 %
Risk Volatility
23.54 %
36.62 %
Sharpe Ratio
-
-
Data as per 28.02.2023 in reference currency of the funds
MSCI China Total Return Index
Class HD (HKD) Currency HKD Inception date 27.04.2022 Price 107.68
Return February
-4.05 %
-9.87 %
Return 2023
3.50 %
0.72 %
Return (cum.) since inception
7.68 %
3.23 %
Risk Volatility
0.00 %
0.00 %
Sharpe Ratio
-
-

Foreign currency bonds (CHF hedged)

Interest rate developments in Q4 were divided. In the first two months, interest rates eased in the hope of a more dovish monetary policy, and the bond markets recovered somewhat from the large price losses of the first nine months. By December, however, this hope had faded and the yield curves shifted upward again. Over the quarter, rates rose most significantly in the eurozone (underweight) and fell in the SGD and GBP (both overweight). This resulted in an outperformance for our two government bond funds. Looking at the year as a whole, the Mid Term fund outperformed (thanks to a shorter duration compared to the index), while the Long Term closed at benchmark level.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Global bonds (CHF hedged)
Data as per 28.02.2023 in reference currency of the funds
Class I Currency CHF Inception date 17.04.2007 Price 1'062.19
Return February
-3.21 %
-1.93 %
Return 2023
-0.74 %
-0.05 %
Return (cum.) since inception
19.54 %
20.96 %
Risk Volatility
4.87 %
3.66 %
Sharpe Ratio
0.23
0.32
Data as per 28.02.2023 in reference currency of the funds
Class I Currency CHF Inception date 01.07.2011 Price 852.52
Return February
-1.79 %
-1.72 %
Return 2023
-0.84 %
-0.57 %
Return (cum.) since inception
-8.67 %
-3.03 %
Risk Volatility
1.93 %
2.07 %
Sharpe Ratio
-0.40
-0.13

Bonds CHF

Until mid-December, CHF interest rates eased somewhat, which was reflected in a positive price performance. Until then, our Bond CHF fund was roughly on par with the market index. In the slipstream of the major central banks, the SNB then also raised its key interest rate by a further 0.5%. Accordingly, CHF interest rates rose again - most noticeably in the maturity range of 6-8 years. The duration of the market index is exactly in this window, that of our fund below - an outperformance was the result, both for Q4 and for the whole of 2022.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Bonds CHF
Data as per 28.02.2023 in reference currency of the funds
SBI AAA-BBB TR
Class I-A Currency CHF Inception date 01.07.2014 Price 929.08
Return February
-1.11 %
-1.41 %
Return 2023
0.62 %
0.85 %
Return (cum.) since inception
-5.19 %
-3.54 %
Risk Volatility
3.13 %
4.24 %
Sharpe Ratio
-0.20
-0.10

Mixed fund Smart Invest 65

Our balanced fund with 65% equities was able to benefit from the general market recovery in October and November and at the same time significantly reduce losses compared to the benchmark (with 40% equities) in December. In the process, it was able to close both the quarter and 2022 with an outperformance.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Mixed funds
Data as per 28.02.2023 in reference currency of the funds
Pictet BVG-40 Index
Class IR Currency CHF Inception date 19.05.2017 Price 97.08
Return February
-1.51 %
-1.36 %
Return 2023
2.01 %
2.51 %
Return (cum.) since inception
0.12 %
10.07 %
Risk Volatility
7.29 %
7.38 %
Sharpe Ratio
-0.02
0.22
Pension solutions for pillar 3a and vested benefits assets
Data as per 28.02.2023 in reference currency of the funds
Pictet BVG-40 Index
Class I Currency CHF Inception date 03.11.2016 Price 108.34
Return February
-1.49 %
-1.36 %
Return 2023
2.04 %
2.51 %
Return (cum.) since inception
8.67 %
17.00 %
Risk Volatility
7.05 %
7.12 %
Sharpe Ratio
0.19
0.35

Mixed fund Smart Invest Dynamic

The equity allocation of our balanced fund with dynamic asset allocation increased from around 30% to 60% (rest in cash) in Q4 given the positive market environment, which did not yet have a beneficial effect on overall performance in negative December. Shortly before the end of the year, the equity ratio was reduced again to around one-third.

Data as per 28.02.2023 in reference currency of the funds Class Currency Inception date Price

OLZ incl. fees, Benchmark excl. fees

Return February

OLZ incl. fees, Benchmark excl. fees

Return 2023

OLZ incl. fees, Benchmark excl. fees

Return (cum.) since inception

since inception

Risk Volatility

Risk/Return, since inception

Sharpe Ratio
Mixed funds
Data as per 28.02.2023 in reference currency of the funds
User-defined benchmark (60% stocks)
Class IR Currency CHF Inception date 05.07.2018 Price 734.80
Return February
-0.83 %
0.00 %
Return 2023
0.09 %
0.00 %
Return (cum.) since inception
-24.39 %
0.00 %
Risk Volatility
10.28 %
0.00 %
Sharpe Ratio
-0.61
-
Data as per 28.02.2023 in reference currency of the funds
User-defined benchmark (60% stocks)
Class I Currency CHF Inception date 31.10.2019 Price 71.69
Return February
-0.80 %
0.00 %
Return 2023
0.15 %
0.00 %
Return (cum.) since inception
-26.71 %
0.00 %
Risk Volatility
11.42 %
0.00 %
Sharpe Ratio
-0.78
-