Passion for Swiss equities

Swiss dividend stocks offer high yielding opportunities

We invest in companies that pay attractive dividends

The zCapital Swiss Dividend Fund participates in attractive dividend payouts and possible capital appreciation of solid Swiss companies. Companies with sustainable dividends are often established with strong brands and good market positions. We focus on a balanced mix of stocks with high dividend yields and stocks with the potential for continuous dividend growth.

Our success factors

Four key elements

Dividend strategy

zCapital focuses on a combination of Dividend Value and Dividend Growth.
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Dividend screening tool

The zCapital Dividend Traffic Light System systematically screens risks of dividend stocks.
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Fundamental research

zCapital analyses the critical factors that could move stocks in the coming months.
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ESG analysis

ESG analysis of companies is an integral part of the research and investment process.
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Strategy

Dividend Value strategies focus on dividend yield or continuity of dividend payments. Dividend growth strategies focus on dividend growth. zCapital uses a combination of these two strategies. In our view, this offers the best chances of success. This approach provides on the one hand a stabilising element in the portfolio and at the same time the opportunity for better performance.

Steadily rising dividends are a sign of a strong business model and good business performance. Swiss dividend-payers with rising dividends show above-average performance.

Dividend Traffic Light System

Our Dividend Traffic Light System examines risks of dividend stocks and identifies investment opportunities. The model analyses balance sheet risks and past dividend payments. It also looks at dividend sustainability and growth, and corporate governance.

Balance sheet risk is a hard exclusion criterion in the model. We do not invest in companies with too much debt. The other factors may influence our investment decision.

The corporate governance criterion relates to management remuneration. Remuneration is set by the board of directors. It can lead to conflicts of interest between shareholders and management or the board.

Fundamental research

Fundamental research focuses on qualitative analysis of the business model, management, market and competitive position. The quality of the balance sheet and the shareholder structure are also analysed. zCapital favours companies with market, technology or cost leadership.

The dividend potential of the companies is also assessed. Dividends are based on sustainable free cash flow. It represents the dividend potential of a company. In particular, we identify the factors that could negatively affect this potential.

Valuation analysis is very important and is a key factor in portfolio construction. Various valuation metrics are used. The analysis reveals discrepancies between market price and fair value. This can lead to investment opportunities or portfolio adjustments.

ESG analysis

We aim to invest responsibly. We are committed to improve environmental, social and governance issues. We carry out our own sustainability analysis.

We conduct ESG analysis for each individual company. The aim is to identify risks and opportunities for stock selection at an early stage. We have developed our own ESG monitor for this purpose. The analysis provides an additional investment perspective.

Selection of dividend stocks

Discipline as a prerequisite for a successful investment strategy

Stock selection reflects the results of our extensive research. We aim for a balance between stocks with high dividend yields and stocks with above-average dividend growth potential. About half of the assets are invested in small and mid caps. The other half is invested in large caps. The zCapital Swiss Dividend Fund is broadly diversified with around 30 stocks. The equity fund invests exclusively in Swiss equities in the universe of the Swiss Performance Index (SPI).

Performance is enhanced through active management of the portfolio positions. Major deviations from the target position size are regularly reviewed and adjusted.

Our track record

Performance Dividend Fund

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Passionate for almost 15 years

Since its inception, zCapital has focused exclusively on Swiss equities. We have one of the largest research teams for listed Swiss companies. Our funds have an impressive track record. The zCapital Swiss Dividend Fund has gained around 150% in 10 years, outperforming its benchmark index by over 40%. The zCapital Swiss Small & Mid Cap Fund has tripled in value over 14 years. It has thus outperformed the market by more than 90%. Past performance is not a reliable indicator of current or future performance. The performance data do not take into account the commissions and costs charged on the issue and redemption of units. Since our inception, we have also taken sustainability issues into account.

Morningstar Ratings zCapital Swiss Dividend Fund

Morningstar rates mutual funds that have been in existence for at least three years. It is a relative rating that compares the risk-return profiles of similar funds. The top 10% in each category are awarded five stars.

Morningstar also assigns the Morningstar Analyst Rating to selected funds. This is awarded by Morningstar's fund analysts. It is a forward-looking statement about the quality of a fund. The zCapital Swiss Dividend Fund has been awarded a "Silver" rating.

In March 2019, Morningstar named the zCapital Swiss Dividend Fund the best product in the "Switzerland Large-Cap Equity" category. It received the Morningstar Swiss Fund Award 2019. The award is given to those funds that have generated the highest excess returns over the past year and over the longer term. Risk is taken into account.

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Memberships

zCapital is a signatory to the United Nations Principles for Responsible Investment (UN PRI). In addition, zCapital is a member of Swiss Sustainable Finance (SSF). SSF is committed to promoting sustainable investments in Switzerland. The Swiss climate protection foundation myclimate certifies zCapital as a climate-neutral company. As a supporter of TCFD, zCapital is committed to transparency in climate reporting. zCapital has signed the Net Zero Asset Managers Initiative, committing to support the goal of net zero greenhouse gas emissions by 2050 or earlier.

Subscription possible at any Swiss bank

Specify Swiss security no. or ISIN

Fund name	zCapital Swiss Dividend Fund (class A)
Swiss security no. / ISIN	19466655 / CH0194666555
Universe	Swiss equitites with a focus on dividend stocks
Income	Distributing
Management fees (incl. fund management and custodian fee)	1.00%
Issue and redemption fee	none
Minimum investment	No minimum investment required
Subscriptions and redemptions	On each bank working day at Net Asset Value (NAV)

Facts and termsheet