Frank Fischer has raised its net equity exposure to 80% in its nearly CHF 3.4 billion Frankfurter Aktienfonds fuer Stiftungen (Frankfurt equity fund for foundations) – its highest level since September 2017.
The investment firm made the fund available to Swiss investors at the end of June after winning a distribution licence.
'Only a few weeks ago, the economic expectations around the globe seemed to come in. In addition, the strategic positioning was on a downward trend, which should be a strong warning signal. These two indicators have recently turned, or seem to have bottomed out,' Fischer told Citywire Switzerland's sister title Citywire Deutschland.
This boost follows a more cautious period that was triggered by looming threats of a trade war between the US and China. 'Only Italy still seems to be the downer in Europe that does not want to put itself in the picture,' he said.
Since the end of July 2018, the fund's defensive stance has been unwound. At the end of July, the net equity ratio was 69%, compared with 80% now. The net equity ratio is currently at its highest level since September 2017, when it hit 84%.
Fischer had the lowest level of net equity exposure in his billion-dollar fund in March 2018, when it clocked in at just 27%. The historical net average share quota for the fund is around 70%.
The fund currently has a cash position of around 18%.