Our Dynamic Equity Allocation

The situation on the financial markets is constantly changing, much like the weather. From sunny to cloudy to stormy – and people adapt accordingly. Many investors ignore the financial market weather completely and wear the same thing every day, so to speak. We show that there is another way.

Lack of risk management in the capital-weighted stock index

Among liquid asset classes, equities deliver the highest returns over the long term. However, global stock markets are currently highly valued, and cyclical stocks have a large weighting in the index. In turbulent market phases, this can lead to significant losses – targeted risk management can help here.

Our solution: OLZ Equity World Dynamic 0-100

Stock market risks are dynamic. In calm upward phases, the risk is low, but this can be followed very quickly by a sharp drop in prices. Investors who set a fixed equity allocation therefore take on too much or too little risk at times, either failing to fully utilize their risk budget or overstretching it. This problem can be addressed with risk-based, dynamic management of the equity allocation.

When the financial markets are calm, a high proportion of equities is held, but when stormy winds blow, the allocation and thus the potential for losses can be reduced accordingly.

Equity allocation in five stages depending on market conditions

Global stock markets are on a positive trend. Stock market risks are not unusually high. OLZ Equity World Dynamic 0-100 is 100% invested in equities.
We are in a positive trend, but stock market risks are unusually high. The risk overlay is active and reduces the equity allocation by 25%. OLZ Equity World Dynamic 0-100 is 75% invested in equities.
Conditions on the stock markets are uncertain. Is the storm coming, or will it pass? Risks are elevated, and caution is advised. OLZ Equity World Dynamic 0-100 is 50% invested in equities.
The outlook on the financial markets is uncertain. Stock market risks are elevated and price setbacks are to be expected. The OLZ Equity World Dynamic 0-100 fund has an equity allocation of 25%.
Ultimately, conditions on the financial markets are turbulent. The trend on the global stock market is clearly negative and risks are significantly increased. OLZ Equity World Dynamic 0-100 is no longer invested in equities and holds 100% liquidity.

Stay informed about our OLZ Equity World Dynamic 0-100: subscribe to our weekly update now.

Subscribe now to our weekly update on OLZ Equity World Dynamic 0-100

This email address is not correct.

Please complete the form in full.

Your data will be treated confidentially and not passed on to third parties. You can find more information in our privacy policy.

The dynamic management of the equity allocation is systematic and based on scientific evidence and the latest methods. Similar to weather forecasting, various trend signals are aggregated and used to derive the basic allocation. The trend signals determine the basic orientation – to determine the general weather situation, so to speak.

However, stock market risks do not always announce themselves well in advance, but can occur at very short notice. Just as a thunderstorm can suddenly roll in on a beautiful summer's day and spoil a barbecue. In order to be prepared for this situation, additional indicators are monitored and aggregated into a daily risk signal. If this alarm is triggered, the basic allocation is overridden and the equity allocation is adjusted at short notice.

With the OLZ Equity World Dynamic 0-100 equity fund, you can easily and conveniently benefit from OLZ's dynamic risk management. The strategy is based on the investment universe of the MSCI World Index and is implemented cost-effectively using highly liquid ETFs, futures, and money market funds. The daily estimate of the trend and risk signal determines the equity allocation, which can range between 0 and 100% depending on the market environment. The reduction in the equity allocation is made exclusively in favor of money market investments.

We are happy to advise you and answer your questions.

Investment solutions for assets over CHF 500,000. 
We will call you when it suits you best.

Or contact us directly:
+41 31 326 80 00
info@olz.ch

Name required

Phone required

This email address is not correct.

Choose a date
Select a period

Your data will be treated confidentially and not passed on to third parties. You can find more information in our privacy policy.

Thank you.

We will get back to you at the requested time and are looking forward to the conversation.

We are always happy to talk to you.

A lasting relationship with our customers is worth more to us than mere success. Get in touch with us, we look forward to hearing from you. Or contact us directly:

🍪 We use cookies.

Your privacy is important to us

This website uses cookies and third-party targeting technologies to provide you with a better internet experience. Technically necessary cookies help make a website usable by enabling basic functions such as page navigation and access to secure areas of the website. The website cannot work properly without these cookies. Statistics cookies help us understand how you, as a visitor to our website, interact with it by collecting and reporting information anonymously. We also provide these cookies to third parties to help us perform these analyses (in particular Google Analytics). In order for us to use statistics cookies or similar technologies, we need your prior and explicit consent; you can revoke this consent at any time. You find further information in our privacy policy.