Helvetica Funds are dividend pearls and must be part of your portfolio. Period.

The successful Helvetica real estate funds look back on a solid year in a challenging market environment. Distributions even increased slightly compared to the previous year. In an inflationary environment, our funds are ideally positioned and provide investors with great safety. The results achieved last year impressively demonstrate that we are able to generate stable investment returns even in difficult economic times. Market corrections should always be used as buying opportunity and not as a sign for a hasty exit. Here, Lucas Schlageter, Portfolio Management at Helvetica, explains why real estate is the best asset class for long-term investors.

Helvetica funds have been performing remarkably well for years. What is the reason for this?
Luck and timing. We always try to buy high-quality properties, in good locations, with the optimal timing and at the right price. It's not always easy, but we managed to do it.

So it doesn't take more than that?
It does. It's much more complex, but buying at the right price certainly helps. We consistently take a hands-on approach when it comes to generating value, which often gives us a decisive advantage over our competitors.

Do you have to be afraid of inflation?
No, quite the opposite if you have invested your money in Helvetica real estate funds. In the bank your money sleeps and becomes worth even less, with us it increases every day. Due to the current banking crisis even more.

What do you mean?
With our real estate funds you profit from inflation. You are a winner. All our funds are almost 100% inflation-proof. So with Helvetica funds you sleep well.

Why does the HSC Fund have a discount?
That is due to the current market environment. The HSC Fund is highly undervalued and the price is irrationally low. This is because new leases are being signed at substantially higher rents, and investors benefit from the fact that almost all leases in our funds are indexed. This makes it an ideal time to get in. A real insider tip.

Why an insider tip?
With a distribution yield of 5.35 per Fund Units the Helvetica Swiss Commercial Fund with ISIN CH0335507932 has once again lived up to its reputation as Switzerland's best real estate fund and dividend pearl. This is apparently not obvious to many investors.  

You have increased the distribution again, is this sustainable?
Absolutely. Higher rental income due to index adjustments and market growth in the value of rental space outweighs the higher financing costs. This often doesn't seem clear to academic analysts. Our funds are the absolute dividend pearl across the country.

Are you worried about rising interest rates?
No. Interest rates have risen in line with expectations, and that's a good thing. The majority of real estate owners are very conservatively financed, so this move can be taken very smoothly and also opens up new opportunities. In addition, interest rates will also decline again.

So it's a dream environment for smart, long-term investors?
Yes. Deflationary rental costs for 15 years, rising construction costs, high inflation, sharply declining construction activity, record high migration are dream conditions for real estate owners. This is as good as it gets.

You don't think there will be a recession?
Impossible. The rock-solid Swiss economy can withstand much higher interest rates in my opinion. I have just bought my dream house myself because I am sure that the timing is ideal.

A special highlight from the last business year?
There are many, but I would like to mention the Helvetica Swiss Living Fund, which grew by 63% last year to over CHF 800 million and almost 1900 apartments. To build up a residential fund in such a challenging market environment, while generating solid investment returns and attractive distributions, is remarkable and makes me proud. Unique.

What do you mean by attractive distributions?
Numbers say more than a thousand words. The fund's distribution was increased from CHF 3.40 to CHF 3.45 per unit. The HSL Fund is thus once again an outperformer with a high distribution yield of 3.05%. However, the future looks even brighter.

Do you expect a correction in the residential real estate market?
No, quite the contrary. The Swiss residential real estate market is strongly undervalued.
In our country, wages have risen much faster than rents in recent years, and have done so for 15 years. And there has been far too little construction. Demand far exceeds supply. There is a shortage of at least 50,000 apartments in the country. Great conditions for investors.

Why great conditions?
Because we will be able to increase distributions in the future due to very solid demand for apartments. We are full, sold out. Accordingly, the fund is one of the highest-distributing residential funds in Switzerland and will remain so.

Is now a good time to get in?
Definitely. The planned listing on the SIX Swiss Exchange by the end of 2024 will further increase the fund's attractiveness. Ask your bank about Helvetica funds.

What advantages do you have over your competitors?
The most beautiful brand in the whole country and the most beautiful Helvetica vests, very exclusive.

A final tip?
In addition to adding Helvetica Dividend Pearls to your portfolio, an Asset Swap to the Helvetica Swiss Living Fund with ISIN CH0495275668 is smart. Here you will be earning money, almost guaranteed. The fund is expected to be listed on the Swiss SIX Exchange in 2024, offering attractive capital appreciation with high distribution potential up to listing and beyond