Swiss index firms move to meet appetite for passive approach

Alix Capital and Source have separately increased their index-related activities in Switzerland to cater to passive investors.

Alix Capital, an index provider based in Geneva, has launched six indices covering onshore hedge strategies.

Meanwhile, exchange-traded fund provider Source has listed 14 ETFs on the Six Swiss Exchange.

The six strategies for Alix’s latest indices are emerging markets, event-driven, market neutral, FX, macro and multi-strategy. The Genevan firm now publishes 11 strategy benchmarks for the onshore hedge industry, which manages about €133bn.

It has been a mixed year so far for these strategies. Some have been the onshore hedge industry’s best performing. Multi-strategy is up 1.41%, while macro made 1.15%, and emerging markets rose 0.87%. But event-driven is off 0.2%, market-neutral is down 1.44% and FX is up 0.24%.

Each of the latest indices will comprise between six and 15 Ucits hedge funds. Each constituent portfolio will be open to new investments, and already hold at least €30m. The benchmarks will be rebalanced each quarter.

Louis Zanolin (pictured), CEO, Alix Capital says: “We continue to expand our network of third party financial product providers in order to develop investment solutions which meet investor appetite for alternative UCITS products.”

The launches come at a time Ucits hedge funds overall are underperforming their unregulated counterparts. By the end of August, Alix reported Ucits hedge funds made 0.68%, while the offshore hedge community made 3.49%, according to Hedge Fund Research.
Similarly, funds of onshore hedge funds fell 1.46%, whereas offshore rivals made 2.4%.

Meanwhile, Source has also expanded its activity in the Swiss passive investment marketplace, by adding another 14 Swiss-listed ETFs to its existing range of 16 exchange traded commodities.

The listings include the $3bn Source Physical Gold ETC, products based off the S&P 500, MSCI EM and MSCI USA indices, and the nine S&P US market sectors of consumer discretionary, consumer staples, energy, financials, healthcare, industrials, materials, technology and utilities.

There are also volatility-based ETFs developed in conjunction with Nomura and JP Morgan.

Mark Vallon of Source, responsible for distribution to Switzerland and Liechtenstein, said: “We are especially pleased to be the first provider to list volatility and US sector products on SIX.”

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