Mutual fund open to all investors.
Appraiser and valuation method
With the approval of the supervisory authority, the Fund Management has appointed Wüest Partner as an independent valuation expert. The valuation experts are distinguished by their many years of experience in valuation. The precise execution of the assignment is governed by a contract concluded between the Fund Management company and Wüest Partner. Wüest Partner values the fund's investment properties using the discounted cash flow method (DCF). Under this method, the market value of a property is determined by the sum of the net income expected in the future over 100 years (valuation period), discounted to the reporting date. Discounting is carried out per property, depending on its individual opportunities and risks, in line with the market and adjusted for risk.
Fund Information
| Product category | Real Estate Fund |
|---|---|
| Fund Name | Helvetica Swiss Commercial Fund (HSC Fund) |
| Fund domicile | Switzerland |
| Legal form | Contractual mutual fund under Swiss law in the real estate fund category |
| Duration of the fund | Open end |
| Investors | Public Investors |
| Fund Management | Helvetica Property Investors AG |
| Auditors | PricewaterhouseCoopers AG |
| Custodian Bank | Bank J. Safra Sarasin |
| Trade | According to the Standard for Collective Investment Schemes of the SIX Swiss Exchange |
| Valuation experts | Wüest Partner AG |
| Financial year | 31 December |
| Appropriation of income | To be distributed |
| Debt ratio | Maximum 33% |
| Supervisory Authority | Swiss Financial Market Supervisory Authority FINMA |
| Valor Nr. | 33550793 |
| ISIN No | CH0335507932 |
| Bloomberg Ticker | HSC:SW |
| Listed on the stock exchange | November 11, 2019 |
| Benchmark | SXI Real Estate Funds Broad TR |
Relevant tax regulations for the investor
The HSC Fund does not invest in direct real estate but holds its properties through individual special purpose vehicles. The Fund is not a legal entity in Switzerland. It is not subject to income or capital taxes. Income and capital taxes are not paid by the fund, but by the companies held. Distributions of income from the real estate fund to all investors in Switzerland and abroad are subject to Swiss federal withholding tax. Further information on taxes can be found in the fund prospectus. CH withholding tax is reclaimable for clients domiciled in Switzerland. It is partially reclaimable for foreign clients if double Tax Treaty exists.
Fees and Incidental Costs Charged to the Inventors
Remuneration | Maximum rate | Actual rates 2024 | Basis |
Issue commission on units | 5.00% | – | Net asset value of units |
Redemption commission on units | 5.00% | – | Net asset value of units |
With the fund contract amendment of May 10, 2023, the maximum rate for redemption commissions on units was increased from 1.50% to 5.00%. The new rate applies to any potential future redemptions.
Fees and Incidental Costs Charged to the Fund
Remuneration | Maximum rates | Actual rates 2024 | Basis |
Remuneration to the Fund Management Company |
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Management fee | 1.00% | 0.60% | Gross asset value |
Purchase/sales compensation | 1.50% | – | Purchase/sale price |
Building and renovation fee | 4.00% | 3.00% | Construction costs |
Property management | 5.00% | – | Gross rental income |
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Remuneration to Third Parties |
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Remuneration to custodian bank | 0.05% | 0.05% | Net asset value of units |
Remuneration to custodian bank | 0.25% | 0.02% | Gross distribution amount |
Market Maker | – | CHF 50 000 | Flat amount of CHF 12'500 |
Remuneration to property managers | 5.00% | 2.75% | Gross rental income |
Real estate as an investment
The Swiss real estate market has proven to be extremely stable in recent decades. With real estate investments as an investment opportunity, risk-adjusted returns could often be better than with other asset classes. Swiss real estate is considered safe and has proven to be an interesting asset class for many investors due to the country's stability. An investment in attractive real estate investment products is particularly worthwhile in phases with extremely low interest rates: Instead of accepting zero interest rates or even negative interest rates, real estate yields attractive, positive returns that need not shy away from comparison with other investments.
Advantages of real estate as an investment
- Above-average return
- Below-average volatility
- Diversification effect due to low correlation
- Protection against inflation with relatively high and stable cash flow yields
- Low vacancy rate by international standards
- Swiss GDP per capita and GDP growth are very attractive compared to the euro zone
Agio for Swiss real estate funds
The premium represents the amount that an investor is willing to pay and that exceeds the net asset value of the property. How is the premium justified to the investor? One element is the way in which the net asset value is calculated. This is systematically below the market value - because the deferred liquidation taxes are included in the calculation. It is more than unlikely that such a case will come about, so a surcharge is justified. In addition, the amount of the premium is also subject to demand. When interest rates are low, investors are willing to pay more for real estate, which drives up agios.
How does a Swiss real estate fund work?
The way it works is similar to that of other mutual funds. The investor invests in fund units of the fund of his choice, which in turn is invested in real estate. The fund buys property and land that fits into the portfolio. The profits from this flow back into the fund assets and are distributed among the investors. The Fund Management company decides which properties to buy or sell, and operates according to a defined investment strategy.
Risks
Changes in property value and interest rate trends and their impact on the development of rental income, but also other market-specific and legal factors, influence the value of the fund's shares. An investment in this fund is therefore suitable for investors with a medium to long-term investment horizon and a corresponding willingness and ability to take risks. Every plant is subject to market fluctuations. Each fund has specific risks that can increase significantly under unusual market conditions.
Your contact person
All relevant documents are available on Swiss Fund Data or on Helvetica.com.
If you have any questions or require further information, please do not hesitate to contact me.
Urs Kunz
Chief Commercial Officer
T +41 43 544 70 95
urs.kunz@helvetica.com
