Review of the 3rd quarter 2026

The summer brought mixed feelings for investors. One topic dominated the headlines: interest rates rose worldwide.
Over the past three months, global equities and gold delivered substantial gains. In contrast, Swiss assets experienced declines, particularly those strongly dependent on interest rate levels.

Higher interest rates bring joy to some and grief to others. Let’s put that into perspective for you.

Performance at a glance (in Swiss Francs)

• Gold +6.3%

• Global equities +5.8%

• Swiss equities -1.6%

• CHF corporate bonds -1.6%

• Swiss government bonds (3–7 years) -2.1%

• Swiss real estate funds -2.9%

For your investment solutions, this means: with a low equity share, you had a quarter without significant changes. With an increased or high equity share, your return in Q3 was in the range of 1 to a good 2%.

What moved the markets

There was no «summer lull» on the financial market. Whether geopolitical tensions, rising prices at the gas pump, or developments around powerful AI models: what dominated the headlines also moved the markets.

Above all, higher energy prices made many products more expensive. To curb inflation, many central banks (except the Swiss National Bank) turned their main dial: the policy rate. This caused interest rates to rise globally and across all maturities.

For example, the US government recently had to offer investors over 5% interest to issue new 10-year debt—the highest level since 2007. In the United Kingdom and Japan, long-term interest rates even rose to peaks last seen in the late 1990s. Interest rates also picked up in Switzerland, albeit to a lesser extent.

This development had direct consequences for your investment solution: higher interest rates mean temporarily lower prices for bonds* and real estate funds. Global equity markets and gold, on the other hand, showed resilience and recorded significant gains.

Why interest rates rise

Anyone borrowing money pays interest to the creditor. The agreed interest rate is the «price of money». When interest rates rise, there are usually three reasons behind it:

• Concerns about excessive debt: When governments, such as the US or the UK, continue to accumulate debt, investors demand higher interest rates. They want to be compensated for the increased risk of default.

• Rising inflation: When consumer prices go up, central banks raise policy rates.

• A booming economy: When companies invest heavily - as they are currently doing in the expansion of AI infrastructure - capital becomes scarce and therefore more expensive.

Higher interest rates concern politics and the economy alike: all players, whether states, companies, or homeowners, must refinance their expiring debt on higher terms. This means greater interest costs and ties up capital that could otherwise be used for productive investments.

If interest rates surge rapidly within a short period, it can plunge debtors into payment difficulties and choke off the economy.

What rising interest rates mean for your investment solution

Don't let such scare scenarios unsettle you. Higher interest rates are by no means purely negative. As an investor, you can even benefit in the long run.

On the one hand, you will receive higher interest returns on your money in the future. On the other hand, we don't take experiments with your hard-earned money and follow clear investment principles:

• Low foreign currency risk: We hold bonds and real estate funds almost exclusively in Swiss Francs.

• High credit rating: We only invest in bonds from borrowers with high creditworthiness (Investment Grade).

• Moderate interest rate risk: We specifically focus on bonds with short to medium maturities.
  
  

The focus on Swiss investments is a deliberate strategy

It is no coincidence that Switzerland boasts the lowest interest rates by international comparison. An important reason is the debt brake. The voters imposed strict spending discipline on politics. This ensures low public debt, builds trust among investors, and makes Swiss Franc bonds and domestic real estate funds less vulnerable to interest rate hikes in the long term.
Thus, these two asset classes fulfill their intended role as a stability anchor in your investment solution, especially when equity markets fluctuate, and have recently started yielding slightly higher returns again.

Outlook

We don't make forecasts. Our recipe is and remains simple: invest long-term, broadly diversified, and cost-effectively.