The growing role of inflation in the Swiss franc’s performance is an overlooked but underappreciated factor for investors eyeing Switzerland’s leading companies in the market.
This view is shared by Citywire-rated Thomas Funk, who manages the Swiss equity fund GAM Multistock with a capital of CHF 277 million and the Swiss Sustainable Companies Equity Fund with a capital of CHF 466.88 million. Funk made these comments as part of a market report entitled “The Swiss Franc is a Blessing and a Curse.”
After investors periodically asked how currency affected his fund’s performance, Funk decided to go through a lengthy thought process, assessing currency fluctuations, 30-year trade-adjusted growth and the role of inflation.