The Standortfonds Deutschland is a global equity fund which, compared to traditional world equity funds, has significantly less foreign exchange risk and, compared to traditional regional funds, has superior sector diversification.
Key features
Highest expected return
With equity funds, attractive returns can be achieved. However, the price development fluctuates strongly.
Transparent value creation
Companies are focused on making a profit. With the fund, you secure your share of it.
Easy and free access
With the Sunrise app, you can invest in the fund without deposit and transaction costs.
Investment strategy
Globally diversified equity funds are the basis for a promising, long-term investment strategy. However, the price development of pure equity funds is often subject to high fluctuations. At the same time, the relationship between the source of added value and return is so clear for few other financial products: as a share owner of an equity fund, you indirectly become a co-owner of a large number of companies. And as such, you own the profits of the companies included.
The German Location Fund makes this connection particularly clear, particularly in combination with the Sunrise app. The fund includes companies, whether international or national, that create value in Germany. Either because their products or services play a major role in Germany, such as Apple telephones, or because they give jobs to many people in Germany, such as Siemens, or even international companies such as Novartis or Microsoft.
In fund management, we ensure that the sector allocation of the location fund Germany largely corresponds to that of a traditional world fund. For example, the German Location Fund invests approximately the same percentage in the technology sector as products that replicate current world stock indices. This clearly distinguishes it from regional funds, which often have large gaps in sector diversification. However, while the technology sector is dominated by Microsoft and Nvidia in a traditional world stock fund and SAP only plays a minor role, SAP is weighted roughly the same as Microsoft in the German location fund. The wider sector diversification compared to local funds has very positive effects on the risk/return ratio. A good overview of this can be found at fondsweb.com. The comparatively strong return was achieved in the past with significantly lower risk.
The location focus also means that the fund invests significantly more than a traditional global equity fund in companies that are listed in euros. As a result, the foreign currency risk is significantly reduced. While companies quoted in euros often represent only around 10% of the fixed assets of a traditional world fund, while companies that quote in US dollars represent around 70%, the ratio in the German location fund is balanced: around 50% of the fund's assets are invested in companies that quote in euros, and around 50% in companies that quote in foreign currencies (especially US dollars, British pounds and Swiss francs).
To this end, we value investing more money from our investors in companies that are pioneers in sustainability within their industry. The German Location Fund therefore meets the requirements of Article 8 of the EU Disclosure Regulation (“light green” fund).
Fund manager
Thomas Niss is responsible for the fund's portfolio management.
Data, Documents and Performance
Further information on opportunities and risks as well as the fund's financial statements can be found on the management company's website IQAM Invest.