The Swiss real estate market has proven to be exceptionally stable in recent decades. With investments in real estate as an investment opportunity, risk-adjusted returns have often been 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 and consistency. Especially in phases with extremely low interest rates, it is worthwhile investing in attractive real estate investment products: Instead of accepting zero or even negative interest rates, real estate offers attractive, positive returns that need not fear comparison with other investments.

Advantages of real estate as an investment

• Above average return
• Below average volatility
• Diversification effect due to low correlation
• Inflation protection with relatively high and stable cash flow returns
• Low vacancy rate by international standards
• Swiss GDP per capita and GDP growth is very attractive compared to the euro zone

Agio for Swiss real estate funds

The agio represents the premium that an investor is prepared to pay and which exceeds the net asset value of the properties. How does the premium justify itself to the investor? One element is the way in which the net asset value is calculated. This is because it is systematically lower than the market value - because deferred liquidation taxes are included in the calculation. It is more than unlikely that such a situation will arise, which is why a premium on it is justified. In addition, the amount of the premium is also subject to demand. When interest rates are low, investors are prepared to pay more for real estate, which drives up the premium.

How does a Swiss real estate fund work?

The way it works is similar to that of other investment funds. The investor invests in fund shares in the fund of his choice, which in turn is invested in real estate. The fund buys real estate and land that fits into the portfolio. The profits from this flow back into the fund assets and are distributed to investors. Which properties are bought or sold is determined by the Fund Management firm, which acts 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 HSO Fund's units. 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 investment is subject to market fluctuations. Each fund has specific risks that may increase significantly under unusual market conditions.