As announced in June, we have made several adjustments to our investment strategies. Our objective was, and remains, to strengthen the international diversification of our portfolios, capture new return opportunities and selectively reduce existing concentration risks. In early October, we consistently continued on this path, implementing further adjustments in line with our strategy.
Increasing exposure to international growth drivers We placed particular emphasis on the technology sector. Digitalisation, automation and artificial intelligence will continue to be important drivers of structural growth in the years ahead. We also strengthened diversification in Asia through global equity investments and targeted investments in developed Asian markets, in areas such as automation and robotics.
Selectively reducing concentration risks We partially reduced the additional international investments through reductions in our exposure to the Swiss equity market. Following the strong share price performance of Swiss insurance companies, we took some profits. In addition to the sector’s now elevated portfolio weighting, we also considered its sensitivity to changes in the interest rate environment. We also slightly reduced our exposure to certain large Swiss defensive stocks, as well as our position in the investment solution focused on listed private market assets. This created additional room for a more diversified and balanced international positioning.
Positive effects on relative performance The adjustments implemented since June are beginning to yield positive results. After our strategies lagged comparable investment solutions in the first half of the year, their relative performance has since stabilised. From July to October, we outperformed our peer group in a volatile, range-bound market environment. The performance of recent months, reinforces our confidence in the adjustments we have made. However, our focus is not on the short-term performance of individual months, but on ensuring that these adjustments prove effective over a longer period. We remain confident that they will.
The core pillars of our investment philosophy remain unchanged The measures implemented do not represent a fundamental change in strategy, despite the significant reduction in Swiss equity exposure. Rather, we continue to evolve our portfolios in response to changing market conditions, opportunities and risks. Our core investment convictions remain unchanged: quality, a long-term investment horizon, broad diversification and a strong focus on the Swiss franc continue to form the cornerstones of our investment philosophy.
