Risk disclosure cleverinvest

Features

cleverinvest aims to continuously build up your assets in an easy, cost-effective and uncomplicated way. Investors decide the equity weighting for themselves.  Weightings of 20%, 45%, 70% and 95% are available. It is also possible to invest in gold or real estate within the equity weighting. In addition, there is a 5% liquidity weighting. The rest is invested in Swiss or European bonds (reference currency is EUR). Questions on risk appetite and risk capacity are used to create a personal investor profile. Based on this, the appropriate equity weighting is suggested to the client. The equity weighting can be changed at any time. The investment universe for cleverinvest consists of Exchange Traded Funds (ETFs) and index funds. Both ETFs and index funds are passive funds that replicate the relevant index (e.g. the SMI/MSCI Europe or the Swiss/European bond market) as accurately as possible. As part of the equity weighting, the client can invest individually in themes they find attractive. Depending on the investment theme, the underlying investment funds meet ESG criteria. The special risks in connection with sustainability (ESG risks) can be found in the brochure "Risks involved in trading financial instruments". If the reference currency is EUR, then EUR ETFs/index funds will be selected where they are equivalent. Where this is not possible, CHF ETFs/index funds will be used. The different themes are set by Bank CIC and may be adjusted in line with market developments. Within cleverinvest the client manages their assets independently and at their own responsibility. The different equity weightings mean the cleverinvest product may be suitable for various risk profiles. Depending on the composition, investors are recommended to adopt a medium to long-term investment horizon. The prices of investments may fluctuate, so appropriate allowance must be made for the liquidity needed to live on. 

ETFs:

ETF stands for exchange traded fund. ETFs are managed passively. In contrast to actively managed funds, there is no active selection of investments by the fund. Instead, ETFs track an existing yardstick (benchmark) such as an index, without further analysing the weighting and investment motives. The main advantage is in the fee structure; costs are low because there is no active fund management. ETFs are also highly transparent (because they are traded on the stock exchange every day) and highly diversified (because they offer access to an entire market).

Index funds:

Like ETFs, index funds aim to track an index as accurately and cheaply as possible, and are also passively managed. The main difference between the two is the exchange listing. Unlike ETFs, index funds are not traded on an exchange. The price (net asset value, NAV) of each unit reflects all the investments of the index fund and is calculated by the fund company on a daily basis. Index funds can be traded in fractions, but ETFs can only be bought and sold in whole shares.

Both ETFs and index funds can invest in separate asset classes such as equities, bonds, real estate and commodities.

How ETFs/index funds work

Benefits of investing in passive funds (ETFs or index funds)

• Passive funds make it possible to diversify broadly across different countries, sectors, themes, indices and asset classes with small amounts of capital.
• Passive funds in particular also offer a way of investing easily and cheaply in megatrend themes to participate in their performance.
• Investors do not require any particular market knowledge, as the selection and management is taken care of by specialists. When investing, clients can select their own preferred themes.
• Should the investment company become bankrupt, the investment capital is protected as is it classified as 'special assets' and held by a separate custodian.
• Fund units can generally be converted into cash within a few days.