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Negative rates cause J. Safra Sarasin to shut bond fund

Negative rates cause J. Safra Sarasin to shut bond fund

Private banking giant J.Safra Sarasin has closed one of its bond strategies due to the detrimental impact caused by the negative rates environment, Citywire Switzerland's sister site, Citywire Selector has learned.

The JSS Multi Label SICAV - OekoFlex fund was closed as it ceased to make sense given the negative euro rate at present, a spokesperson for the Basel-headquartered company confirmed.

The fund had been conceived to invest in international equities and fixed income securities mainly denominated in euros.

It also allocated to companies with a strategic focus on environmentally friendly, eco-efficient management with a proactive approach to relationship with shareholders.

The lead managers on the fund were Wilhelm Schäfer and Helmut Kotschwar

Schäfer joined the bank in March 2017 and remains with the firm where he is still in charge of the JSS Quant Portfolio – Global EUR, JSS Sustainable Bond CHF and JSS Sustainable Portfolio Swiss Flexible.

Kotschwar, who used to be head of bonds and absolute return at the firm, left in November 2017 to take charge of the bond portfolios at Evangelische Bank.

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