Finding attractive yields in Swiss francs in the current environment

Low interest rates in Switzerland pose challenges for bond investors. Government and investment grade bonds in Swiss francs offer only limited earnings potential, while high hedging costs often neutralise foreign currency bond yields.

With this in mind, several sectors come to the fore, including Emerging Market Corporate bonds in hard currencies as well as Euro High Yield bonds. Both asset classes offer attractive, steady yields and benefit from enhanced fundamentals, robust technical market support and comparatively low interest rate durations in addition to currency hedging.

Our actively managed fund solutions in this segment boast an impressive track record backed up by Morningstar 5-star ratings and accolades such as Lipper Fund Awards.

Mixing these solutions with a core portfolio of Swiss franc bonds allows investors to open up additional income opportunities while maintaining a balanced investment strategy.

Read on to discover our range of funds offering interesting opportunities for Swiss franc investors in the current environment.

Learn more about our capabilities in fixed income – read our latest articles.

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