I see, so in principle they are saying that DRPF & CSLP are trading at very high prices and people should not trade them unless they fall approx. 15% in value.
However at the same time, 3a pension funds use CH0036599816 (UBS Index fund) as vehicle which invests in all of these overvalued Swiss RE funds.
Nice page. Good to read “officially” from UBS re the NAV’s being used for the merger.
Would you all think that NAV premia increase towards year end? The tax benefit of owning direct funds really only applies to owners of the fund on 2 dates. I.e. on the date they pay out the distribution (income tax) and over year end (asset/wealth tax)
Given the low overall liquidity, that seems unlikely?
Fair enough. People are allergic to taxes though. 1000 CHF bill circulation always jumps in Dec to revert back in January as people hold cash (presumably to have a lower bank balance over the year end).
Maybe someone has access to the above NAV premium chart data, then it’d be easy to identify year end effects.
I think that’s just all those envelopes going back and forth at Xmas. I only get around to depositing my Ameislis ** begin Jan, when I have more time again.
**
Since the NAV of those funds are calculated using DCF. And given the recent massive shift down in the yield curve (plus reference rate for rents NOT being lowered), I guess it’s fair to assume that the NAVs will be higher by year end.
| ISIN | Bloomberg | NAV | Px | Premium |
|---|---|---|---|---|
| CH0026465366 | DRPF | 14.56 | 19.65 | 35.0% |
| CH0100612339 | STA | 108.89 | 141 | 29.5% |
| CH0031069328 | CSLP | 110.39 | 155.5 | 40.9% |
| CH0118768057 | HOSP | 76.19 | 105 | 37.8% |
| NAV weighted | 38.7% | |||
| Mkt Cap weighted | 38.8% |
All very strong now.
Makes sense given the correlations shown below.
I don’t know how to see this asset going forward.
UBS themselves are claiming that they are overvalued. I wanted to add some more but I guess I need to wait to understand what should be the right way to invest in Swiss RE.
I see some funds at lower AGiO and some at higher AGIO even with similar residential component. Don’t quite understand how is market actually valuing these funds and on what basis
Helvetia Swiss PF has agio less than 20% , DRPF more than 35%, CSLP 40%.
If someone can share some insights , that would be great.
